Mahindra XUV700, Scorpio N, and Thar Continue Strong Run; SUV Sales Hit Record High Even After Festive Season

Mahindra & Mahindra has maintained its dominance in the SUV market, delivering an impressive performance in the second quarter of fiscal year 2026. Despite the festive season ending, demand for Mahindra’s SUVs remains exceptionally strong — so much so that the company’s inventory levels have dropped below the normal range. While automakers typically maintain 25 to 30 days of stock, Mahindra’s inventory has now fallen to just 15 days. The company clarified that this dip isn’t due to weak demand but rather due to logistical challenges and technical adjustments linked to GST transitions.

SUV segment continues to drive growth
Rajesh Jejurikar, Executive Director and CEO of Mahindra’s Automotive and Farm Sector, stated that deliveries for most models began after September 22, creating a temporary backlog. He emphasized that demand across Mahindra’s SUV portfolio remains robust and that inventory levels are expected to normalize soon.

During the quarter ended September 2025, Mahindra achieved a revenue market share of 25.7%, marking a 390 basis point rise from the previous year. This growth was largely fueled by the strong performance of flagship models such as the Scorpio N, XUV700, and Thar. The company also reported a 10.3% margin in its SUV business.

Boost from GST reforms and rural markets
Mahindra expects mid-to-high teen growth in the SUV segment for the full fiscal year 2026. Even after the festive season, bookings and inquiries have remained steady. The company attributes this continued momentum to increased cash flow in rural markets and the positive impact of GST-related price relief, which has helped accelerate sales.

LCV segment showing recovery
Mahindra is also witnessing a strong comeback in the Light Commercial Vehicle (LCV) segment. The company sold around 70,000 units in the quarter, achieving a 53.2% market share, up 13% year-on-year. Group CEO Anand Shah added that LCV volumes are expected to see double-digit growth by the end of this fiscal year.

EV sales picking up pace
Mahindra’s performance in the electric vehicle space has also been remarkable. The company sold over 30,000 units of its Born Electric Series (BE6 and XEV9) — its fastest-ever EV growth. Electric SUVs now account for about 8.7% of Mahindra’s total portfolio. The company currently holds a 25% EV market share and expects this figure to rise further with upcoming model launches.