&w=3840&q=100)
Mahindra EV biz posts ₹111 crore Q1 EBITDA, awaits PLI nod for XUV9e
Revenue touched ₹3,068 crore in Q1FY26, and the company reported a loss before tax of ₹108 crore. Including battery electric vehicle (BEV) contract manufacturing at Mahindra & Mahindra's Chakan plant for MEAL, the overall EBITDA for the EV business comes to ₹111 crore, with a loss before tax of ₹101 crore.
M&M's electric SUVs captured a 44.3 per cent revenue market share in Q1 and a 40.9 per cent revenue share in the overall electric vehicle market. In terms of volumes, M&M held a 31.8 per cent market share in electric SUVs in Q1FY26 — a sharp rise from 6.3 per cent in Q1FY25. EV penetration in M&M's overall sales touched 7.8 per cent, compared to the industry level of 5.6 per cent.
Rajesh Jejurikar, executive director and chief executive officer of the auto and farm sector, M&M, said the EV business's EBITDA figures did not include any production-linked incentive (PLI) benefits.
'We have qualified for PLI for the XUV9e and we are waiting for the final technical audit certification, which should come around Q2FY26 or Q3FY26,' he said, adding that the company will apply for PLI benefits for the BE6 around Q4. Approvals typically take around three months.
The company also said it was 'comfortably' covered on the rare-earth magnet issue. 'We have had no production disruptions because of that. We have taken a series of actions, including around inventory, and we are covered comfortably at least till the fourth quarter. We have also taken measures such as substituting rare earth with light earth and other materials,' Jejurikar told reporters after the quarterly results.
He clarified that the company had not yet finalised the location for its upcoming greenfield plant. Mahindra currently has capacity to produce 55,000 internal combustion engine (ICE) vehicles a month, of which it is producing around 40,000 units, or 80 per cent of capacity. For EVs, monthly production stands at around 4,000 units, which will be gradually ramped up.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
43 minutes ago
- Business Standard
Just 1/5th of auto PLI firms have products cleared for incentives
These companies have received clearance for 107 model and component variants, having met the DVA threshold, based on data available till July 31 Surajeet Das Gupta New Delhi Listen to This Article More than two years after its launch, only 16 of the 84 firms eligible under the ₹25,938 crore production-linked incentive (PLI) scheme for automobiles and auto components have products that have met the required domestic value addition (DVA) criteria to qualify for incentives. These companies have received clearance for 107 model and component variants, having met the DVA threshold, based on data available till July 31. However, with China tightening restrictions on exports of critical rare earth materials, which is crucial for manufacturing electric motors in India, achieving the 50 per cent localisation target is likely to become even more
&w=3840&q=100)
Business Standard
11 hours ago
- Business Standard
Exporters seek govt aid, credit at affordable rates to deal with US tariffs
Indian exporters from various sectors, including food, marine, and textiles, have sought financial assistance and affordable credit from the government to cope with the 25 per cent Trump tariff, industry officials said. In a meeting with Commerce and Industry Minister Piyush Goyal in Mumbai, certain exporters sought plans on the lines of the production-linked incentive (PLI) scheme, they added. "Exporters share issues, which they may face in the American market because of the high duty announced by US President Donald Trump," one of the officials said, adding that the minister has suggested that the exporting community send their suggestions in writing. They also demanded loans at affordable rates and fiscal incentives. In India, according to exporters, interest rates range between 8 and 12 per cent or even more, depending on the spread and risk assessment of the borrower by authorised dealer banks. In competing countries, the interest rate is very low. For instance, the central bank rate is 3.1 per cent in China, 3 per cent in Malaysia, 2 per cent in Thailand, and 4.5 per cent in Vietnam. The situation for sectors like apparel and shrimp is not good. US buyers have started cancelling orders or are holding back orders. In the coming months, it can impact India's exports to the US, and because of a dip in shipments, there could be job losses," they said, adding that it will be difficult for the government to extend fiscal incentives. The 25 per cent duty, announced this week, will come into force from August 7 (9.30 am IST). These will be over and above the existing standard import duty in the US. The sectors, which would bear the brunt of this high tax, include textiles/ clothing (10.3 billion), gems and jewellery (12 billion), shrimp (USD 2.24 billion), leather and footwear (USD 1.18 billion), chemicals (2.34 billion), and electrical and mechanical machinery (about USD 9 billion). The US accounts for over 30 per cent of India's leather and apparel exports. According to think tank GTRI, quick estimates suggest that India's goods exports in FY 2026 may come down by 30 per cent from USD 86.5 billion in the last fiscal to USD 60.6 billion in 2025-26. Sudhir Sekhri, Chairman, AEPC (Apparel Export Promotion Council), last week requested immediate government intervention to offset this huge setback. "Exporters have their back against the wall and will have to sell below cost to keep their factories running and avoid mass layoffs," he has said. Plastic exporter from Delhi NCR region Arvind Goenka said that exports to the US will face stiff competition from competing countries as tariffs on India are one of the highest. "The USA has fixed substantially lower tariffs on countries like Vietnam (20 per cent), Thailand (19 per cent) and South Korea (15 per cent), all of which excel in plastic goods production, and they may encroach into India's share, which currently is USD 2.2 billion annually," Goenka said. India's leading footwear exporter and Farida Group Chairman Rafeeq Ahmed said the government should come forward to help the industry before a trade pact is finalised between India and the US.
Economic Times
11 hours ago
- Economic Times
Exporters seek assistance, credit at affordable rates to deal with Trump tariff
Indian exporters from various sectors, including food, marine, and textiles, have sought financial assistance and affordable credit from the government to cope with the 25 per cent Trump tariff, industry officials said. In a meeting with Commerce and Industry Minister Piyush Goyal in Mumbai, certain exporters sought plans on the lines of the production-linked incentive (PLI) scheme, they added. "Exporters share issues, which they may face in the American market because of the high duty announced by US President Donald Trump," one of the officials said, adding that the minister has suggested that the exporting community send their suggestions in also demanded loans at affordable rates and fiscal India, according to exporters, interest rates range between 8 and 12 per cent or even more, depending on the spread and risk assessment of the borrower by authorised dealer banks. In competing countries, the interest rate is very low. For instance, the central bank rate is 3.1 per cent in China, 3 per cent in Malaysia, 2 per cent in Thailand, and 4.5 per cent in Vietnam. The situation for sectors like apparel and shrimp is not good. US buyers have started cancelling orders or are holding back orders. In the coming months, it can impact India's exports to the US, and because of a dip in shipments, there could be job losses," they said, adding that it will be difficult for the government to extend fiscal 25 per cent duty, announced this week, will come into force from August 7 (9.30 am IST). These will be over and above the existing standard import duty in the sectors, which would bear the brunt of this high tax, include textiles/ clothing (10.3 billion), gems and jewellery (12 billion), shrimp (USD 2.24 billion), leather and footwear (USD 1.18 billion), chemicals (2.34 billion), and electrical and mechanical machinery (about USD 9 billion).The US accounts for over 30 per cent of India's leather and apparel to think tank GTRI, quick estimates suggest that India's goods exports in FY 2026 may come down by 30 per cent from USD 86.5 billion in the last fiscal to USD 60.6 billion in Sekhri, Chairman, AEPC (Apparel Export Promotion Council), last week requested immediate government intervention to offset this huge setback."Exporters have their back against the wall and will have to sell below cost to keep their factories running and avoid mass layoffs," he has exporter from Delhi NCR region Arvind Goenka said that exports to the US will face stiff competition from competing countries as tariffs on India are one of the highest."The USA has fixed substantially lower tariffs on countries like Vietnam (20 per cent), Thailand (19 per cent) and South Korea (15 per cent), all of which excel in plastic goods production, and they may encroach into India's share, which currently is USD 2.2 billion annually," Goenka said. India's leading footwear exporter and Farida Group Chairman Rafeeq Ahmed said the government should come forward to help the industry before a trade pact is finalised between India and the US.
