M&M Aims to Double Electric Three-Wheeler Sales in FY24

Mahindra & Mahindra (M&M) has set an ambitious target of doubling its electric three-wheeler sales in this era of rapid shift towards electric vehicles (EVs) in the three-wheeler transportation segment.

Mahindra & Mahindra (M&M), India’s largest electric three-wheeler manufacturer, expects more than double its sales this fiscal year because of its faster transition to EV in the three-wheeled transportation segment. Mahindra & Mahindra (M&M) has set an ambitious target of doubling its electric three-wheeler sales in this era of rapid shift towards electric vehicles (EVs) in the three-wheeler transportation segment.

Already in the first six months of FY-24, the company had outsold its previous year's yearly sales of 35000 units. It had the highest quarterly sales of 18600 units from July to September, achieving a 63 per cent market share.

Here are the key highlights:

Performance:

In the first six months of FY-24, M&M has already surpassed its annual sales from the previous year, achieving sales of 35,000 units.

The company achieved its highest quarterly sales in the July to September quarter, delivering 18,600 units and capturing a market share of 63 per cent.

Last Mile Mobility Business Sales:

Anish Shah, MD of Mahindra & Mahindra, shared that the last-mile mobility business has made significant strides. They are transitioning from 5,000 electric three-wheelers in FY-21 to an impressive 74,000 units in FY-24.

This robust electric three-wheeler sales is expected to contribute significantly to the overall Last Mile Mobility (LMM) business, which is likely to breach the 1 lakh units mark for the entire financial year.

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Growth Potential:

Investors have taken note of this strong performance. The International Finance Corporation (IFC) has decided to invest in M&M’s LMM business.

As per the Federation of Automotive Dealers Association, the overall electric three-wheeler market, including e-rickshaws, grew by 58 per cent last month, crossing the 50,000 monthly sales milestone.

Total Cost of Ownership and Market Penetration:

Rajesh Jejurikar, ED & CEO of Mahindra & Mahindra, emphasized the total cost of ownership advantage of electric three-wheelers. Compared to CNG, there’s a gain of 3 lakhs, and compared to diesel, it’s a gain of 5 lakhs.

The penetration of electric vehicles in the L5 Small Goods category increased to 10.5 per cent in Q2 FY24, up from 7.2 per cent in Q2 FY23.

Passenger electric three-wheelers achieved a penetration rate of 10.1 per cent, while cargo electric three-wheelers reached 12.5 per cent.

Manufacturing Capacity Expansion:

M&M offers six different models of electric three-wheelers, catering to both cargo and personal transportation needs.

The company has already increased its manufacturing capacity for Mahindra Treo e-three-wheelers at its Haridwar facility to meet the high demand since April 2023.

In summary, Mahindra & Mahindra’s electric three-wheeler business is on a fast track, contributing to India’s sustainable mobility goals and driving growth in the last-mile transportation sector.