Mahindra & Mahindra, the leading electric three-wheeler manufacturer in the country, aims to more than double its sales in the current financial year, driven by a rapid shift to electric vehicles in the three-wheeled transportation sector.
In the first six months of FY-24, the company has already surpassed its annual sales figure from the previous year, reaching over 35,000 units. Notably, it achieved its highest quarterly sales of 18,600 units in the July to September quarter, securing a market share of 63 percent.
Anish Shah, MD of Mahindra & Mahindra, stated during a post Q2 FY-24 earnings call that the last-mile mobility business has made significant progress, moving from 5,000 electric three-wheelers in FY-21 to 74,000 in FY-24. The business is on track to meet these estimates.
A robust electric three-wheeler business is expected to contribute to the Last Mile Mobility business exceeding 100,000 units for the entire financial year. In the first half of FY-24, M&M’s last-mile mobility business witnessed strong double-digit growth, surpassing 50,000 units from April to September.
While Shah did not disclose the midterm target, he mentioned significant growth expectations until FY-27, highlighting investor confidence reflected in IFC’s decision to invest in the Last Mile Mobility (LMM) business.
According to the Federation of Automotive Dealers Association, the overall electric three-wheeler market, including e-rickshaws, grew by 58 percent last month, exceeding 50,000 monthly sales and closing with 56,818 units.
Rajesh Jejurikar, ED & CEO of Mahindra & Mahindra, emphasized the company’s robust track record and the substantial opportunity to electrify the three-wheeler space, with a current penetration of around 10%. He noted the attractive proposition for customers in terms of total cost of ownership, offering savings compared to CNG and diesel.
M&M reported that overall electric vehicle penetration in the L5 Small Goods category increased to 10.5 percent in Q2 FY24, compared to 7.2 percent in Q2 FY23. Passenger electric three-wheelers had a penetration of 10.1 percent, while cargo penetration reached 12.5 percent.
To meet growing demand, M&M has expanded manufacturing capacity for Treo e-three-wheelers at its Haridwar facility since April 2023. Additionally, the company has committed Rs 1000 crore to a new three-wheeler facility in Zaheerabad, Telangana, scheduled to begin operations in the next financial year. M&M had signed an MoU with the Telangana government in February for expanding its existing manufacturing facility in Zaheerabad’s Medak district. The expansion includes adding the Jeeto range of petrol, diesel, and CNG vehicles, including the Zor Grand Electric.
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