The company rose to become the second-largest passenger-vehicle seller in India in 2025, overtaking Tata Motors Passenger Vehicles and Hyundai Motor India, a shift that executives attributed to the introduction of new products and stronger consumer demand for SUVs.
Sustained growth expected
Mahindra credited models such as the Thar Roxx and 3XO for much of its 2025 success, and highlighted recently launched models that it expects to sustain growth. Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sectors), told PTI that the new XUV 7XO and electric XEV 9S will be important contributors going forward.
“Last year, we also introduced new versions of Bolero and Bolero Neo. So, we believe that we have enough at play to keep our momentum going because the customers are looking for newness and every year, we are able to create one or two things (products), which really strike that sweet spot and get momentum,” Jejurikar noted.
Also Read : Mahindra posts 25 per cent growth in December 2025; 86,090 units sold overall
XUV 7XO launch and production plans
On Monday, Mahindra launched the seven-seater XUV 7XO, an updated version of the XUV700. The company expects the model to add material volumes to the XUV family. “The average sales of XUV 700 have been in the range of 7,000 units a month. We expect at least 30 per cent upside with 7XO,” said Jejurikar.
To meet anticipated demand, Mahindra said it will add capacity at its Chakan plant by 2027 and is evaluating a new greenfield facility. In the near term, the company plans to adjust capacities across existing plants and products.
Industry backdrop
Passenger-vehicle wholesales in India hit a record 45.5 lakh units in 2025, a nearly 6 per cent increase from the previous year, driven by industry recovery and supportive policies in the second half. SUVs remained one of the main growth drivers, making up 55.8 per cent of total PV sales in 2025, aiding Mahindra’s volume growth post GST changes.
Also Read : Mahindra XUV 7XO launched at ₹13.66 lakh; Gets ChatGPT integration
GST 2.0 impact and macro outlook
Jejurikar pointed to recent GST reforms as a key enabler for broader demand, not just for passenger vehicles but also for light commercial vehicles. “We are seeing the positive impact on LCVs (less than 3.5 tonne) as well. The segment was not growing for almost 2-3 years, but that suddenly turned around with the GST rate cut and festive season sales pick up,” he added.
He also flagged the wider economic context, suggesting that a stronger GDP outlook would bolster demand across many of Mahindra’s segments. “With the GDP expected to grow by 7.5-8 per cent, it will trigger many of the segments in which we play,” he pointed out.
Pricing, volumes and profitability focus
Mahindra’s retail sales climbed to 5,92,771 units in 2025, a 20 per cent increase from 4,92,981 units in 2024, a performance the company says comes despite having a higher-than-average selling price on several of its models.
“I think this combination of being able to get successful volume at high price points, which drives revenues and margins, is noteworthy,” he added.
Electric vehicle targets
On electrification, the company remained cautiously optimistic. Mahindra plans to sell around 7,000 electric vehicles by the end of the current fiscal year, and currently moves between 4,000 and 5,000 EVs per month, according to the company.
With a mix of new ICE and EV launches, and production expansion underway, Mahindra is positioning itself to leverage continued SUV demand and policy-induced market tailwinds as it seeks to hold on to its newly won second slot in India’s passenger-vehicle market.
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First Published Date: 07 Jan 2026, 08:40 am IST
