Mahindra & Mahindra will take a calibrated approach to entering the UK passenger vehicle market and will move ahead only when it is confident that it can build a strong and sustainable position, even as the automaker identifies markets such as Indonesia as relatively easier opportunities in its global expansion.
The company is looking at international growth through a phased strategy. It plans to deepen its presence in established markets such as South Africa and Australia, evaluate larger new markets such as the UK more carefully, and simultaneously pursue countries where existing products can be introduced without significant additional investment.
However, Mahindra does not intend to rush into the market. “If we go there, we want to go there to win. And if you are not convinced we can't win, we will be careful about doing it,” Gollagunta said.
He added that India remains a large and fast-growing core market for Mahindra, giving the company room to be selective about overseas expansion.
“I am not in a hurry because I have a core market which is doing well and we will continue to bet on this market,” he said. “But we will go out there. The difference is we now have products which are built for the globe.”
Mahindra's management has been spending time at dealerships in the UK and Australia to understand customer preferences and market dynamics. The company will proceed when it is convinced that the unit economics work and that it can build a sustainable business over time.
The UK is a sizeable opportunity. New car registrations in the country crossed 2.02 million units in 2025, up 3.5%, according to the Society of Motor Manufacturers and Traders (SMMT). Battery electric vehicles accounted for nearly one in four new cars during the year. The SMMT currently expects the overall market to grow to about 2.18 million units in 2026, with EV penetration reaching 27.4%.
Mahindra's ambitions in markets such as the UK will not be driven purely by volumes, according to Gollagunta. The company wants its products to build strong brand equity in new markets rather than compete simply for market share. “It is not necessarily a volume game. That can pull you into a trap as well. That product has to have very high brand power,” he said.
UK FTA Does Not Change Near-Term Strategy
Mahindra management's comments come shortly after the India-UK Free Trade Agreement came into effect on July 15. The agreement lowers or eliminates tariffs across a wide range of goods and includes provisions covering automobiles. The UK government has said access for Indian electric and hybrid vehicles to the UK will be phased and subject to quotas.
Asked whether the FTA altered the company's strategy, Gollagunta said, “Not yet. There are a lot of things that kick in after five years.”
The automaker is developing vehicles with global markets in mind. Its upcoming NU_IQ modular platform supports both left- and right-hand-drive configurations and multiple powertrains. Mahindra says products based on the architecture will start arriving from 2027. The concepts and platform were developed jointly by the Mahindra India Design Studio in Mumbai and Mahindra Advanced Design Europe in Banbury, UK.
Low-Hanging Fruit
While Mahindra is taking a cautious approach to larger new markets such as the UK, it sees another category of countries where expansion could be faster because it can use its existing products.
Gollagunta described these markets as “a little bit of low-hanging fruit”.
“Classic is Indonesia for us. We are doing well right now.... But we are learning about that market,” he said. “And we have realized that this is a market we can play and do well in.”
Mahindra is looking for other markets with similar characteristics, where an existing vehicle can be introduced without major changes and where competitive intensity may be lower.
“We are looking at other markets where an existing product can easily go. But we just haven't thought about it or spent time on it,” Gollagunta said, adding that these opportunities may not require Mahindra “to do something dramatically different”.
Indonesia has already emerged as an important export market for Mahindra. In February, the company secured its largest-ever export order, for 35,000 single-cab Scorpio Pik Ups to be supplied during 2026 to Indonesian state-owned enterprise Agrinas Pangan Nusantara.
Mahindra said the order by itself exceeded its total export volumes in FY25. The vehicles will be used to support logistics for cooperatives under an Indonesian government programme.
The order gives Mahindra a sizeable operating base from which it can learn more about the Indonesian market and potentially introduce other products, an opportunity the latest management comments indicate the company is now exploring.
Three-Phase Global Expansion
Mahindra's broader international strategy can be divided into three parts.
The first is to deepen markets where the automaker already has an established presence and dealer network, particularly South Africa and Australia, along with smaller markets such as Chile and Tunisia.
South Africa and Australia have already become important parts of the company's overseas business. Mahindra said in its FY26 annual report that it had consolidated its position among the top 10 automotive manufacturers in South Africa, while its Australian business recorded strong growth following the launch of the XUV 3XO. It also became India's fifth-largest automobile exporter across passenger and commercial vehicles during FY26, according to the company.
The second phase covers large right-hand-drive markets such as the UK, where Mahindra sees significant potential but plans to enter only after building the right products, distribution strategy and business case.
The third phase consists of more tactical expansion into markets such as Indonesia, where Mahindra believes its existing portfolio can compete without requiring major incremental product investments.
The approach reflects Mahindra's attempt to expand its global footprint without taking attention or capital away from its rapidly growing domestic business.