Shares of Mahindra & Mahindra (M&M) experienced a significant boost on Wednesday, November 27, 2024, following the launch of two new electric Sports Utility Vehicles (SUVs) by its subsidiary, Mahindra Electric Automobile Limited (MEAL). The stock rose by 2.74% to reach an intraday high of ₹3,070 per share, before settling at ₹3,017 per share, up 0.98% by 10:10 AM. In contrast, the BSE Sensex was trading nearly flat at 80,009.82 points.
New launches: XEV 9e and BE 6e
The excitement in the market stems from the unveiling of the XEV 9e and BE 6e, two electric SUVs built on Mahindra’s cutting-edge INGLO platform, marking a major leap in the company’s transition to sustainable mobility. Both models feature a 79 kWh lithium iron phosphate battery offering a real-world range of over 500 km on a single charge. The fast DC charging capability of up to 175 kW allows the battery to charge from 20% to 80% in just 20 minutes, providing a practical solution for EV enthusiasts.
The XEV 9e, with its coupe-inspired design, caters to customers seeking a blend of luxury and performance, while the BE 6e, with its athletic stance and race-inspired agility, targets performance-oriented drivers. These SUVs are built on a “born-electric” architecture, ensuring a futuristic, EV-focused design and functionality.
Manufacturing and investment plans
Mahindra & Mahindra plans to manufacture up to 90,000 vehicles annually at its Automotive Division in Chakan in collaboration with MEAL. The capacity will be developed in phases and is expected to become operational by March 2025.
The project is a key component of M&M’s five-year investment plan (FY22–FY27) amounting to ₹16,000 crore, with ₹4,500 crore earmarked for electric vehicles. This allocation covers powertrain development, advanced software integration, product design, and expanded manufacturing capabilities.
Analysts’ views
Analysts have responded positively to the launch of the new SUVs, citing innovative features and competitive pricing. However, concerns about inadequate charging infrastructure may limit the immediate adoption of these vehicles.
- Motilal Oswal analysts praised the XEV 9e and BE 6e for their strong value proposition but noted the uncertainty surrounding near-term volume growth. They forecast a 13% compound annual growth rate (CAGR) in revenue, 16% in EBITDA, and 15.5% in profit after tax (PAT) for M&M over FY24–FY27. The brokerage maintains a “Buy” rating with a target price of ₹3,420 based on a sum-of-the-parts valuation for September 2026.
- Nuvama analysts highlighted the competitive pricing of the models and their superiority over peers in terms of features. They project battery electric vehicle (BEV) volumes of 48,000 units by FY26 and expect M&M to achieve a 15% CAGR in revenue and 18% in core earnings for FY24–FY27. Nuvama’s target price is ₹3,700, backed by the company’s ability to maintain a robust 45% return on invested capital (RoIC).
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Market outlook
M&M’s share price performance aligns with the optimism surrounding the EV market and the company’s strategic investments in sustainable mobility. The announcement has positioned Mahindra as a key player in India’s rapidly expanding electric vehicle segment.
The INGLO platform’s focus on advanced technology, efficient powertrains, and practical charging solutions underscores Mahindra’s commitment to addressing the evolving needs of EV consumers. With a growing demand for environmentally friendly vehicles and Mahindra’s ability to deliver innovative solutions, the company is well-poised to capitalise on the electrification trend.
Specifications at a glance
- XEV 9e
- Battery: 79 kWh
- Range: 500 km+
- Charging Time: 20% to 80% in 20 minutes
- Length: 4,789 mm
- Design: Sophisticated coupe-style luxury SUV
- BE 6e
- Battery: 79 kWh
- Range: 500 km+
- Charging Time: 20% to 80% in 20 minutes
- Length: 4,371 mm
- Design: Athletic and performance-focused
The launch of the XEV 9e and BE 6e at the Mahindra Research Valley in Chengalpattu represents a significant step in Mahindra & Mahindra’s electric vehicle strategy. As the company scales production and addresses market challenges, it has positioned itself as a leading force in India’s EV revolution.
