KATHMANDU : Indian automaker Mahindra & Mahindra plans to double its electric vehicle production capacity over the next five years.
The company announced the plan after reporting a 6.8% increase in first-quarter profit, supported by strong demand for its vehicles and tractors.
The company is increasing its focus on electric vehicles as demand for EVs grows in India. Mahindra is also expanding its EV portfolio to compete with rivals such as Tata Motors and Hyundai.
Mahindra reported a 23% increase in quarterly revenue to Rs 419.2 billion for the June quarter. Its SUV business remained a major contributor to growth. Revenue from the SUV segment increased by 24.4% to Rs 310.33 billion.
The company’s farm segment also performed strongly. Revenue from the business rose 19% to Rs 109.47 billion, while tractor volumes increased 18% to around 158,000 units.
However, higher commodity costs affected profitability in the automotive business. The standalone operating margin of the auto segment fell to 7.1%, compared with 8.9% a year earlier. Standalone net profit rose 6.8% to Rs 36.85 billion.
The company implemented its second price hike of the year on July 8. Further price increases will depend on commodity prices, although Mahindra said it currently has no immediate plans for another hike.
