Mahindra & Mahindra Plays to Its EV Strengths, Stays Shielded from Rare Earth Crunch

As India’s electric vehicle (EV) race heats up and raw material concerns loom globally, Mahindra & Mahindra (M&M) is positioning itself as both resilient and ready. While rival automakers are reworking production plans due to component shortages, the homegrown SUV major has assured investors that its EV ambitions remain firmly on track.

Addressing analysts after its Q1 FY26 results, M&M said it has proactively mitigated the risks stemming from the global shortage of rare earth magnets — a key input in EV motors — by diversifying materials and securing sufficient inventory.

“We are comfortably covered on the rare earth magnet issue, as we have shared earlier. There has been no disruption to production because of that,” Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sectord told analysts, adding “We’ve taken a series of actions — some related to inventory, others around substituting rare earth with light earth elements and ferrite materials.”

The homegrown automaker affirmed that it is fully covered for the current and next two quarters, and “mostly covered” for the fourth quarter as well — an assurance that offers rare optimism in a market where Maruti Suzuki, for instance, has had to slash near-term production targets for its electric e-Vitara.

Open to more competition

Mahindra’s leadership believes its EV portfolio is well-equipped to hold ground — and even grow — amid a crowded and fast-changing competitive landscape.

“We have had this question on competition for a few decades now. And what we have seen is that competition has always made us stronger,” said Anish Shah, Group CEO & MD of M&M. “This time, with the electric models that we have, our products really stack up very well against the competition coming in.”

Shah emphasized that Mahindra is entering this cycle from a position of strength, underpinned by product readiness and recent strategic gains. “I would dare say, maintain, and potentially grow market share as well,” he added.

Jejurikar also echoed the sentiment, adding that Mahindra’s focus should be on revenue market share rather than just volumes. “Like what we have seen with the entry of new players over the last two quarters, the EV penetration has started to move up. That is fundamentally the right direction for the country,” he noted. 

Jejurikar also noted encouraging signs in the evolving EV ecosystem: “There are very strong plans that the government has to implement through the Ministry of Heavy Industries and a few other partners in the ecosystem to execute a stronger charging infrastructure.” 

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Robust Q1 FY25 results

Mahindra’s optimism was supported by a robust financial performance in the first quarter of FY26. The company reported a 32% jump in standalone net profit to Rs 3,450 crore, while consolidated net profit rose 24% year-on-year to Rs 4,083 crore for the three months ended June 30, 2025.

Revenue from operations climbed 26% to ₹34,143 crore, comfortably beating analyst estimates. Total consolidated income rose to ₹45,529 crore from ₹37,218 crore in the year-ago period.

“The operating excellence in our Auto and Farm businesses is evident in continued market share gains and margin expansion,” Shah said.