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M&M bets on multi-powertrain platform to beat rivals, meet emission norms
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Ayaan Kartik M&M joins Tata Motors in securing access to a technology platform that can accommodate multiple powertrains. Tata Motors has access to Modular Longitudinal Architecture technology through its arm Jaguar Land Rover. The MLA platform can accommodate petrol, diesel, plug-in hybrid and EVs. Mahindra Group Managing Director and Chief Executive Officer Anish Shah. Gift this article
Mumbai: Mahindra & Mahindra Ltd will develop new petrol, diesel and electric vehicle models on one common technology platform that will give it the flexibility to meet global emission norms and adjust its products based on market demand, as competition in the world's third-largest automobile market intensifies.
Mumbai: Mahindra & Mahindra Ltd will develop new petrol, diesel and electric vehicle models on one common technology platform that will give it the flexibility to meet global emission norms and adjust its products based on market demand, as competition in the world's third-largest automobile market intensifies.
While revealing its new vehicle platform NU_IQ, the company on Friday unveiled design prototypes of four new sports utility vehicles (SUVs) that will be based on the platform. These SUVs based on the new platform will begin arriving in the markets in 2027. The automaker, however, did not commit to the launch of hybrid vehicles just yet.
Mahindra & Mahindra (M&M) joins Tata Motors in securing access to a technology platform that can accommodatemultiple powertrains. Tata Motors has access to Modular Longitudinal Architecture (MLA) technology through its wholly-owned British subsidiary Jaguar Land Rover. The MLA platform can accommodate petrol, diesel, plug-in hybrid and battery electric vehicles.
Vehicle platforms or architecture are the foundational structure of the car with major components and systems in place on which different models can be developed. The new set of announcements was part of the company's annual event held on 15 August, with this year's edition in the country's financial capital Mumbai.
'Hybrid vehicles are not part of the architecture yet. This platform is currently focused on petrol, diesel and electric vehicles," Rajesh Jejurikar, executive director and chief executive officer (auto and farm sector), M&M, told reporters on the sidelines of the launch. 'Our earlier stance on electric vehicles remains unchanged, which is that if there is customer demand, we will bring hybrid vehicles."
Mahindra and Mahindra's share price has increased by 6% so far in 2025, as against a 4% rise in the benchmark Nifty50.
Mahindra is locked in a fierce battle with Hyundai Motor India and Tata Motors to occupy the second spot in India's automobile pecking order. So far in FY26, Mahindra has been able to beat Hyundai to the second spot in terms of wholesales in all four months, but it in retail sales in July. Also Read | Mahindra looks to acquire 350-acre land parcel in Igatpuri
The Indian subsidiary of the Korean giant announced at the January-March earnings call that it will launch hybrid vehicles and soon roll out 26 vehicles in the country to take back market share and hold on to the number two position, which it has occupied since the financial year 2009.
Anish Shah, group CEO at Mahindra and Mahindra, said that after years of dominance by foreign carmakers, domestic companies are finally making their mark.
'There was a time not long ago, global automakers dominated the Indian roads. Today, the tide has turned. Indian companies like Mahindra are at the forefront of technology, scale and ambitions," Shah said at the gathering. His comments come after Mahindra dislodged Hyundai Motor India from the second position in the first quarter of the current financial year.
Subhabrata Sengupta, partner at Avalon Consulting, noted that the biggest advantage that Mahindra gets from the new platform is the ability to hedge according to market needs.
'A platform where ICE (internal combustion engine) and EV can be developed gives the company the flexibility to react quickly to market trends. If EVs pick up more, the company can move production to meet demand quickly, and vice-versa," Sengupta said.
The development of a multiple powertrain model also comes at a time when the new emission norms, CAFE 3, are scheduled to come into force in 2027. Jejurikar emphasised that the new tech platform will allow it to be flexible with production of vehicles, enabling it to meet emission norms effectively.
CAFE 3 (Corporate Average Fuel Efficiency) norms are India's upcoming regulations aimed at reducing carbon dioxide emissions from vehicles. These norms will set a cap on the average CO2 emissions of a carmaker's entire fleet, pushing them to produce more fuel-efficient vehicles.
'The new platform will allow the company to accommodate production requirements quickly between diesel, petrol and EVs with CAFE norms in mind. Currently, most of the Mahindra sales are coming from diesel models which are fuel-guzzling," Sengupta added.
In FY25, 77% of Mahindra's total 551,000 sales in the domestic market were diesel models.
With the Bureau of Energy Efficiency (BEE) finalising the CAFE 3 norms, automakers are in talks with the government to seek relaxations, saying that the proposed targets are too stiff.
Jejurikar remained unfazed about the looming threat of strict implementation of fuel efficiency norms in the country and different regulations in foreign markets where Mahindra is looking to establish its presence using its current products and new line-ups for 2027.
'We will follow a phased approach to enter different markets. In the first phase, we will enter our known markets such as South Africa and Australia followed by further expansion to new markets over the next years," he said.
To accommodate development of electric and ICE vehicles on the same platform, the company will utilize a capacity of 240,000 units from 2027at its Chakan plant for the production of newly-designed vehicles.
To increase exports, Mahindra is looking to introduce its India-made electric cars in the UK and other global markets. Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
