Mahindra & Mahindra has expressed optimism about a surge in demand for vehicles priced between Rs 10 lakh and Rs 25 lakh, following the tax relief measures in the FY26 union budget and a 25 basis point repo rate cut by the RBI, which now stands at 6.25%. Rajesh Jejurikar, the Executive Director for the auto and farm division, noted that the robust market demand anticipated in this pricing bracket aligns with the company’s strategic focus on offering products within the Rs 7-25 lakh range.
Dr Anish, the Group CEO of Mahindra & Mahindra, elaborated that the tax relief specifically aims to empower the middle class by increasing their disposable income, which is expected to stimulate demand. He further explained that, consequently, higher spending power is likely to encourage greater private sector investment—an area that has experienced some stagnation recently—and together with the RBI’s rate cut, these measures are seen as positive drivers for economic activity.
In addition to the expected market upswing, the company also reported strong financial performance, with a 19% year-on-year profit increase reaching Rs 2,964 crore and a 20% rise in revenue from operations to Rs 30,538 crore during the October to December quarter of FY25, driven largely by a healthy demand for SUVs. Maintaining its leadership in the SUV market with a 23% share, Mahindra & Mahindra is also gearing up to expand its presence in the electric vehicle segment by commencing bookings for its recently launched BE.6 and XEV.9e models, with an initial rollout of 5,000 units set to begin on February 14 this year.