M&M Eyes Rs 4,100 Cr Incremental Revenue in FY27 from Higher AI Adoption

Mahindra & Mahindra expects to generate additional Rs 4,100 crore in revenue from increased adoption of artificial intelligence in its automotive business, according to its Group Chief Executive Officer and Managing Director Anish Shah. The automaker sees AI as a tool that can improve all its businesses, with clear benefits already visible. 

Shah noted that teams are using it in daily work to save time, improve quality and handle customer interactions better. “This is something that has the ability to transform all our businesses… we see huge benefits on a day-to-day basis in small things, on larger projects as well.” 

He said the company has moved from testing AI to using it in real work across functions. Executives are applying it to solve problems quickly and accelerate processes. 

On financial impact, Shah said AI-led projects in the auto business alone are expected to generate about Rs 4,100 crore in revenue this year. He added, “This is still what I would look at as initial results from AI. We will continue to get more results as we use this further.”

Apart from additional revenue, M&M expects a 2-3 percentage point improvement in customer satisfaction and about a 10% reduction in product development time, which could help the automaker bring vehicles to market faster. 

AI is now being widely deployed across the automotive value chains. In manufacturing, M&M is using vision-based systems for quality checks and process optimisation, including in paint shops. In engineering, stimulation tools help reduce testing time and accelerate validation cycles.

On the customer side, M&M is deploying AI-led engagement tools for better reach and sales conversion. During one recent SUV launch, AI-driven outreach generated around 17,000 test drive leads, with systems capable of interacting with customers in multiple languages. 

The company’s approach to AI is structured around deploying quick-use applications, transforming existing processes and building new capabilities. While early use cases have delivered efficiency gains, management indicated that revenue generation and customer experience improvements are emerging as larger opportunities.

Mahindra has also set up supporting infrastructure, including investments in data systems and internal reskilling through an AI-focused academy, alongside governance frameworks to ensure responsible deployment.

The Rs 4,100 crore target is linked specifically to the auto business, but AI applications are being rolled out across other verticals as well, including financial services and logistics. Management said AI-led gains are being tracked closely to ensure they are incremental to existing plans, as the company looks to scale up deployment in the coming years.

(With inputs from Kiran Murali)