Citi on M&M: Key Concerns for Electric Vehicle Growth: Mahindra & Mahindra (M&M), one of India’s leading automotive giants, has been making aggressive strides in the electric vehicle (EV) space. However, a recent brokerage report from Citi highlights some key concerns regarding the company’s EV performance.

Lower Than Expected BEV Sales:Battery Electric Vehicles (BEVs) are seen as the future of mobility, with automakers globally investing billions to transition from internal combustion engines (ICE) to electric powertrains. However, Citi notes that the absolute volumes of BEVs from M&M have been significantly lower than recent launches from competitors.

This raises questions about consumer demand for Mahindra’s EV offerings, competitive pricing, and potential supply chain challenges. While Mahindra has ambitious plans in the EV segment, lower-than-expected adoption rates could impact its market positioning.

Challenges in EV Facility Ramp-Up:Another major concern Citi points out is the ramp-up of Mahindra’s EV manufacturing facility. Scaling up production is crucial to meeting demand, but uncertainties around supply chain efficiency, production capacity, and cost management remain key factors.

Additionally, the brokerage highlights the importance of monitoring cancellation rates. High cancellations may indicate issues such as long delivery timelines, pricing concerns, or inadequate charging infrastructure, all of which can hinder consumer confidence in Mahindra’s EV lineup.

On February 17,2025 Shares Of Mahindra and Mahindra Trading Lower by 4% 

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Readers are advised to conduct their own research or consult with a professional before making any investment decisions. The views expressed in this article are based on publicly available data and do not represent any endorsement or recommendation.