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E SUVs – aspirational, disruptive yet affordable

View – Continuing the ICE momentum of feature reach offerings

M&M unveiled two born-electric SUVs (BE 6e and XEV9e) with an entry-level trims priced aggressive and are comparable to ICE models in the respective segments. As a result, we believe these launches will not only accelerate EV adoption in the PV but also can establish M&M as leading E PV brand. M&M’s indigenously designed INGLO platform is not only scalable due to modularity but also offer high parts commonality. As also indicated during investor day, the products offer multiple first-in-class features combined with aggressive introductory pricing makes it better choice for customers. However, we think both models (especially BE 6e) lacked seating dimension of adequate thigh support and headroom for rear seat passengers, which can influence buying decision of certain customer segments. MM will continue to have a healthy launch pipeline as it targets to launch 9 ICE SUVs (includes 6 new launches and 3 midcycle upgrades), 7 BEVs and 7 LCVs by 2030. Driven by new launches, we expect MM to continue outperforming industry growth. We are building in SUV volume CAGR of 15.4% over FY24-27E with overall revenue/EBITDA/Adj.PAT CAGR of 13.4%/17.5%/13.5%. We maintain BUY with TP at 3,632 as MM trades at implied core PE of 23.5x/21.1x FY26E/FY27 EPS.

Key highlights (BEV launch PPT link)

BEVs can dent competition both in ICE and EVs -We believe both the models are launched at an attractive price point, which can not only accelerate EV adoption in the UV1/UV2 but also can establish M&M as leading E PV brand. The introductory prices of BE 6E and XEV 9e are aggressive and comparable to the ICE models in the respective segments, where the company is offering a wide range of superior features such as connected technology, suspension, infotainment, etc. The addressable market for BE 6e is ~22k units/month (~50% of mid-size market) while entry pricing is comparable to higher trims of ICE models in the segment. Further, with XEV 9e the company has launched its first EV in the large SUV segment, further strengthening the portfolio (XUV 700 and Scorpio N) with an addressable market size of ~18k units/month (~45% of large size SUV market). While pricing of XEV 9E is aggressive too, we believe there can be cannibalization to company’s existing product portfolio. The BE 6e is designed to rival Tata Curvv, MG ZS, and MG Windsor while XEV 9e to rival yet to be launched Tata Harrier EV and Sierra EV. We build in volumes of ~36k/~48k units combined in FY26E/FY27E.

Combination of technology, features and innovation – Both the E SUVs are built on grounds up electric origin architecture INGLO and are powered by MAIA (Mahindra Artificial Intelligence Architecture). The company has developed EVs with superior performance and features compared to global premium EVs on multiple fronts. Other than flexibility aspects of INGLO, it also offers a significant reduction in underbody weight, leading to one of the lightest skateboards which enabled 79 kWh LFP battery pack. Further, three-in-one electric engine with motor, inverter and transmission integrated into a single unit forms the powertrain in the rear side paving the wat for storage at the front side. MAIA support launch of features such as ADAS level 2+, multi sensor fusion, secure 360, 360-degree camera, auto park, Eyedentity, Vision X and other advanced connected features.

Robust battery architecture with high focus on safety aspects - Co to use BYD Blade LFP cells featuring cell-to-pack technology to power the motors. Battery packs offer a lifetime warranty (only to private customers). In case of an ownership change, it limits the scope of coverage to 10 years or 2L KMs, whichever is earlier.

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