What is the story about?
In a high-stakes move to challenge the dominance of Tata Motors and MG in the burgeoning electric vehicle (EV) market, Mahindra & Mahindra (M&M) has finalized
a first-of-its-kind retail partnership with lifestyle giant Fabindia. The tie-up allows Mahindra to integrate its EV booking platform directly into Fabindia’s "FabFamily" loyalty ecosystem, marking a pivot toward "lifestyle-led" sustainable mobility.
Mahindra’s EV Ambitions: Closing the Gap
While Mahindra currently dominates India’s diesel SUV market with a nearly 56% market share, its penetration in the passenger EV space has been more measured.
As of late 2024 and early 2025:
- Current Standing: Mahindra is currently the third-largest player in the Indian electric car market, trailing behind Tata Motors (which holds ~65-70% share) and MG Motor India.
- Sales Momentum: Mahindra recently reported a significant surge in EV interest, with new flagship models like the XEV 9e and BE 6 garnering over 38,840 units in combined demand during their launch phases.
The "FabFamily" Network
For Mahindra, the primary value of this tie-up lies in Fabindia’s massive and loyal customer base:
Customer Base: Fabindia operates over 350 stores across India and manages a "FabFamily" loyalty program with an estimated several million active members.
Fabindia remains a leader in the organized ethnic retail space (valued at over ₹1,600 crore), commanding a significant share of the premium urban household spend.
Under the new deal, FabFamily members can redeem their accumulated "Fabcoins" to access exclusive booking windows, priority delivery, and special lifestyle rewards when choosing a Mahindra electric SUV.
Fabindia has partnered with Mahindra Electric Origin SUVs to enable loyalty programme members to book premium electric SUVs using 1,000 Fabcoins, boosted to a booking value of ₹21,000.
The Mahindra eSUV reward will go live on December 19.
Comments from Industry
William Nanda Bissell, Managing Director, Fabindia Ltd, said: “Fabfamily was built on the belief that loyalty should create extraordinary value and not just transactional benefits. Partnering with Mahindra allows us to demonstrate that belief at its boldest: enabling our members to book an Electric Origin SUV using just 1,000 Fabcoins. It’s an unprecedented 21X value unlock and a proud moment for us as two Indian brands come together to promote conscious consumption, sustainable mobility and customer empowerment."Nalinikanth Gollagunta, Chief Executive Officer – Automotive Division, Mahindra & Mahindra Ltd. and Executive Director, Mahindra Electric Automobile Ltd, added: “At Mahindra, we believe the future of mobility is not just electric, it is experiential, accessible, and deeply integrated into the lifestyle of our customers. This partnership with Fabindia is a powerful example of how two purpose-driven brands can come together to redefine value. It’s a step forward in democratizing eSUV ownership and creating meaningful touchpoints that go beyond the vehicle itself.”
Synergy of Sustainability
The partnership is designed to capitalize on the overlap between "slow fashion" and "zero-emission" travel. Industry analysts suggest that Mahindra is looking to convert Fabindia’s "Gold" and "Platinum" tier members—who spend upwards of ₹50,000 to ₹1,00,000 annually—into first-time EV owners.
"This is more than a sales channel; it’s a brand alignment," said a senior auto industry analyst. "Mahindra is positioning its EVs as a lifestyle choice for the conscious Indian consumer. By entering the living rooms and wardrobes of Fabindia’s customers, they are bypassing the 'range anxiety' conversation and moving straight to 'value alignment'."
Industry Context
Overall Industry performance
The Indian EV market is expected to hit a record 193,000 units by the end of 2025. While the overall market share for EVs remains at approximately 4% of the total passenger vehicle segment, Mahindra’s aggressive "EV-only" investment strategy (avoiding hybrids) makes such lifestyle partnerships critical for long-term dominance.
With this tie-up, Mahindra & Mahindra aims to not just sell a car; but to embed upon its "Born Electric" vision into the fabric of Indian premium retail.
