Mahindra Targets 13–15% EV Revenue Share by 2027 to Meet CAFE 3 Norms

Mahindra and Mahindra (M&M) plans to achieve a 13 to 15 percent electric vehicle (EV) revenue share by March 2027. This target supports the company's strategy to comply with the upcoming Corporate Average Fuel Efficiency (CAFE) 3 norms, expected to take effect by 2028. M&M estimates it will need 18 to 20 percent EV penetration over five years to meet these regulatory requirements.

Key Highlights

• Mahindra targets 13 to 15 percent EV revenue share by March 2027
• EV penetration must reach 18 to 20 percent over five years to meet CAFE 3 norms
• Over 55,000 electric SUVs sold across BE6, XEV 9e, and XEV 9s models
• Automotive segment revenue rose 32 percent to ₹34,294.18 crore in Q4 FY26
• Six new electric vehicle products planned by 2031

EV Sales and Market Share

In the fourth quarter of fiscal year 2026, Mahindra's electric SUV sales accounted for 9.6 percent of its total SUV sales. Over the last two months, EV penetration has already exceeded 11 percent, driven by improved deliveries of the latest models. The company has sold over 55,000 electric SUVs to date, spanning its BE 6, XEV 9e, and XEV 9s models.

Mahindra claimed the top position in EV revenue market share in the last fiscal year, holding a 37.4 percent share. Demand for Mahindra's newest EV SUV model, the XEV 9S, remains the highest, followed by the XEV 9E and BE6 models.

Capacity Expansion and Future Plans

To meet rising demand, Mahindra is increasing its EV production capacity. The company will raise monthly EV output from just over 6,000 units to 8,000 units by the end of fiscal year 2027. An additional 4,000 units of capacity will be added for new product launches in fiscal year 2028. However, the company currently faces some capacity constraints, especially in ramping up production of the XEV 9S model.

Looking ahead, Mahindra plans to launch six new born electric vehicle products by 2031. This expansion aligns with the company's long-term strategy to strengthen its EV portfolio and meet regulatory targets.

Financial Performance

Mahindra's automotive segment reported revenue of ₹34,294.18 crore in the fourth quarter of fiscal year 2026. This marks a 32 percent increase from ₹25,902.39 crore in the same quarter the previous year. The company's management shared these updates during a post-earnings call on May 5, 2026.