‘Could sell 3,000 more EVs a month’ if supply constraints ease: Mahindra

Mahindra & Mahindra could sell an additional 2,000-3,000 electric vehicles a month if production constraints ease, as demand rises to 10,000-11,000 units, a senior company official said on Thursday.

“We were retailing over 8,000 vehicles in the last couple of months, but the demand is going up to 10,000-11,000 units,” Velusamy R, president of Automotive Business at M&M and managing director of Mahindra Electric Automobile Ltd, told PTI.

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“If the supply constraints are not there, we could sell another 2,000-3,000 easily,” he said.

M&M, India's second-largest electric car seller after Tata Motors, has four models in its portfolio: XUV 400, BE6, 9E and 9S. Its monthly electric SUV production capacity stood at around 8,000 units at the end of March and is being increased to 12,000 units by the end of the current financial year.

Velusamy said high petrol and diesel prices, better charging infrastructure and longer driving ranges are encouraging customers to consider electric vehicles. He added that other players in the industry are also facing supply constraints.

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Passenger vehicle demand is also benefiting from goods and services tax (GST) reforms and the festive season, with strong buying expected through September, October and November.

“The demand is very bullish, and we are making every effort to meet the demand. One is the GST-induced demand, and another is the festival demand. And the festive demand is spreading across September, October and November. The demand is high right now for all the segments, whether it is SUV in ICE or in EV,” he said.

Separately, M&M entered the CNG-powered SUV segment on Thursday with the launch of the XUV 3XO ZNG, priced at Rs 9.99 lakh (ex-showroom) onwards.

Velusamy said higher petrol and diesel prices, the expansion of CNG outlets, particularly in northern markets, and the growing share of CNG vehicles in passenger vehicle sales prompted the company to enter the segment.