Mahindra & Mahindra’s last-mile mobility business has lined up eight products and plans to double production capacity by FY29, with demand for its electric vehicles outstripping available supplies.
The business aims to grow at twice the industry rate. Its domestic sales increased 36.7% to 52,869 units in the second quarter of FY27, led by electric three- and four-wheelers. Deliveries of the Udo crossed 26,000 units during the first half.
“Udo has been a resounding success and we see a lot of upside to volume on that,” said Rajesh Jejurikar, executive director, Auto and Farm, Mahindra & Mahindra, at the company’s media briefing.
The company said its current manufacturing capacity was fully utilised. This makes additional production a priority as it seeks to sustain growth through the rest of FY27.
“Unfortunately, you know, we don’t have the capacity to leverage the huge demand that’s coming,” Jejurikar said.
Mahindra did not specify how much additional capacity would become available in the second half of FY27 or give individual launch dates for the eight products.
Domestic sales in July–September rose from 38,684 units a year earlier and were 25.1% higher than the preceding quarter. Total sales for April–September stood at 95,145 units.
Electric three- and four-wheeler sales increased 41.4% year on year to 45,287 units in the second quarter, accounting for nearly 86% of domestic volumes, compared with about 83% a year earlier. Sales of internal combustion engine models rose 13.8% to 7,582 units.
For the first half, Mahindra reported 57.5% growth in electric three-wheeler volumes. Its share of the electric three-wheeler market stood at 36.2% in the second quarter, according to the company’s quarterly presentation, which cites SIAM.
Jejurikar said Mahindra now had four lakh electric three-wheelers on the road. The company also reported that the last-mile mobility business had achieved unicorn status, with a valuation of Rs 10,822 crore.
The business is benefiting from the wider shift towards electric three-wheelers. EV penetration in the industry’s L5 three-wheeler category reached 41.4% in Q2 FY27, according to Mahindra’s presentation. The company identifies 50% electrification by FY30 as a growth driver.
The planned capacity expansion and new products support an ambition to reach annual EV volumes of about 3.5 lakh units by FY30, or 25 times the FY20 base of 14,000 units. The presentation puts FY26 volumes at 7.5 times that base, equivalent to approximately 1.05 lakh units.