Nalinikanth Gollagunta, CEO of Mahindra Auto, while speaking to CNBC-TV18 on the sidelines of the new Bolero launch on Monday, said the recent GST 2.0 policy has sparked renewed consumer enthusiasm and made SUVs more accessible, particularly in the mid and entry-level segments.
“Dealer-reported retail sales are up nearly 60% for SUVs. Some of it is portfolio-driven, but a lot of it also has to do with GST 2.0 for autos,” Nalinikanth said. “We’re quite optimistic about a strong festive season.”
The company has passed on the full benefit of GST changes to customers, helping to offset price sensitivity amid global raw material volatility.
“Our intent when the government announced the policy was to ensure its benefits reached customers directly, and we did that,” he said. “If the macro environment changes, we’ll reassess, but for now, we’re happy to keep our products attractive.”
Mahindra is also preparing to strengthen its presence in the electric vehicle (EV) segment, with a new model set to debut in November. The company believes the segment has firmly entered the mainstream, with Vahan registrations surpassing 14,000 in September—the highest ever for EVs.
“EVs are clearly a focus area for us. The industry will ultimately move in that direction,” Nalinikanth noted. “With our new launch, we’ll further strengthen that momentum.”
The company is observing changing buyer behaviour, with customers opting for higher variants or moving directly from hatchbacks to SUVs. “Entry-level SUVs have become more accessible, and we’re seeing many customers trading up within our own SUV lineup,” he added.
While Mahindra continues to explore alternative powertrains, compressed natural gas (CNG) is not an immediate priority.
“Right now, CNG doesn’t fully align with our ‘power on tap’ philosophy. But as technology evolves, we’ll keep evaluating it,” he said.
Festive Outlook Strong
With Navratri driving robust footfall and Diwali approaching, Mahindra expects momentum to continue.
“Footfalls and inquiries have been strong, and we expect them to convert into bookings and retail sales as the season progresses,” Nalinikanth said.
Mahindra enters the festive quarter with strong tailwinds—GST-driven affordability, surging SUV demand, and the promise of an EV-powered expansion.
