M&M plans to double its electric three-wheeler sales in FY24, LMM biz may cross 1 lakh mark 

Mahindra & Mahindra, the country’s largest electric three-wheeler maker is planning to more than double its sales this financial year, led by an accelerated transition to EV in the three wheeled transportation space.

Already in the first six months of FY-24, the company has already exceeded sales of its last year annual sales of 35000 units. It posted a highest quarterly sale at 18600 units in the July to September quarter, registering a market share of 63 percent.

Speaking to media post Q2 FY-24 earnings call, Anish Shah, MD of Mahindra & Mahindra - says, "The last mile mobility business we have made great progress. We are moving from 5000 electric three wheelers to FY-21 to 74000 electric three wheelers in FY-24. The business is on track to deliver those estimates.”

A strong electric three wheeler business is likely to help the overall Last Mile Mobility business breach 1 lakh units for the entire financial year. In the first half of FY-24, M&M’s last mile mobility business grew by a strong double digit and crossed over 50000 units in April to September of the current year.

While Shah declined to share the midterm target, but he added, there is a significant growth expected till FY-27."This is something (growth potential) which is being seen by the investors and it is on the back of this strong performance – IFC has decided to invest in (Last Mile Mobility) LMM business.”

As per the Federation of Automotive Dealers Association, the overall electric three-wheeler market in all categories including e-rickshaws grew by 58 percent last month crossing the 50,000 monthly sales mark closing with 56818 units.

Rajesh Jejurikar, ED & CEO of Mahindra & Mahindra said, “The company is on a very robust track. Importantly the penetration in this category is around 10%, which means, there is still a lot of opportunity to electrify the three-wheeler space and drive significant growth as we go forward. The strong point here is total cost of ownership - when compared to CNG, there is a gain of 3 lakhs and compared to diesel, it is a gain of 5 lakh that is what the proposition is from a customer standpoint.”

M&M's says the overall EV penetration in the L5 Small Goods category increased to 10.5 percent in Q2 FY24, compared to 7.2 percent in Q2 FY23. The penetration in passenger electric three-wheelers is at 10.1 percent, whereas cargo penetration is at 12.5 percent.

M&M, which offers six different models of electric three-wheeler space ranging from cargo to personal transportation, has already increased manufacturing capacity for Treo e-three-wheelers at its Haridwar facility beginning in April 2023 to cater to high demand.

And it has already committed Rs 1000 crore in a new three-wheeler facility in Zaheerabad in Telangana, Jejurikar said the facility will go on stream next financial year.

M&M had signed an MoU with the Telangana government in February to expand its existing manufacturing facility in Zaheerabad's Medak district, where it plans to add the Jeeto range of petrol, diesel, and CNG vehicles, including the Zor Grand Electric.