Mahindra accelerates supply chain transformation to support aggressive EV and international growth plan

Mahindra & Mahindra is asking its suppliers to adapt to a more demanding operating environment as it prepares a sweeping product offensive through FY31 and pushes further into electric vehicles and overseas markets.

At the company’s annual vendor conference in Mumbai in the final week of May, executives laid out a sharper brief for the supply base: build greater resilience into sourcing, shorten development timelines, automate more aggressively and take a larger role in t...

echnology-led product work. The message reflects both Mahindra’s own ambitions and the turbulence now shaping manufacturing worldwide.

The automaker is planning 26 vehicle programmes through FY31, comprising 10 internal combustion engine SUVs, six Born Electric models and 10 light commercial vehicles. That schedule comes on top of a strategy already set out in its FY25 annual report, which pointed to a broader product ramp-up and a goal of making electric SUVs account for 20% to 30% of its portfolio by 2027.

Mahindra’s push is being made from a position of relative strength. The company has steadily deepened its presence in India’s SUV market, built credibility in EVs and expanded its international footprint. Its annual report said SUV leadership remains central to the business, with brands including Scorpio, Bolero, XUV700, XUV 3XO and Thar forming the backbone of the portfolio. It also said six new products were launched in FY25.

But the backdrop is less forgiving than it was even a few years ago. Geopolitical tensions, shipping disruptions, raw material swings and tariff uncertainty have all increased the risk of interruptions across supply chains. Business Standard reported in May that Mahindra had carried out a wide-ranging risk review across ₹100,600 crore of purchases, 100,000 parts and 40 commodities, and was responding with more inventory, alternative local suppliers and an intelligence desk for faster reaction times.

That context helps explain why continuity of supply has moved higher on the agenda. Mahindra is urging vendors to improve visibility beyond the first tier, broaden sourcing options and localise critical parts more deeply. The aim is not only to control cost but to reduce exposure to shocks that can ripple through production schedules.

Speed is equally important. As product cycles shorten and technology changes faster, Mahindra wants suppliers to match its pace on engineering and industrialisation. That means quicker development work, faster launches and the ability to support several programmes at once. The pressure is heightened by rising competition, including from Chinese manufacturers, which has made speed to market a more decisive advantage.

Automation is another area of emphasis. As vehicle content becomes more complex and volumes rise, Mahindra is pressing suppliers to lift productivity and add flexibility. The company itself has highlighted digitalisation and artificial intelligence as key levers for future efficiency, with an internal target of creating ₹4,100 crore in value from AI-led initiatives across its automotive business. Suppliers, too, are expected to invest in digital manufacturing and production systems that can respond quickly to shifting demand.

Technology collaboration is the final piece of the new supplier brief. With electronics, software and connected features taking up a bigger share of vehicle value, Mahindra wants vendors to move beyond traditional component supply and contribute more directly to development. That includes co-engineering, systems integration and higher-value modules, signalling a closer and more technical relationship between the OEM and its partners.

The broader growth story remains compelling. Mahindra has said its SUV revenue market share rose from 17.8% in FY20 to 25.3% in FY26, while the domestic SUV market nearly doubled over the same period to almost 3.2 million units. Its international business now spans more than 20 countries and sells more than 40,000 units a year.

To support the next phase, the company is investing in modular manufacturing, localisation and a new vendor park. It has also set out capacity expansion plans for the years ahead, with recent reporting pointing to a higher production footprint to support growth in both ICE and electric SUVs.

For suppliers, the message from Mumbai was unmistakable: Mahindra’s next phase of growth will not be built on cost and quality alone, but on resilience, speed, digital capability and deeper technology partnership.

Source: Noah Wire Services