Mahindra XEV 9e, BE 6e: Sales volume estimates, share price targets for M&M

Mahindra & Mahindra Ltd (M&M) has unveiled two electric SUVs: BE 6e and XEV 9E models based on a new dedicated EV platform that analysts saod scores over peers on features, but has been priced competitively. 

Auto analysts said the electric SUVs have large battery, fast charging capabilities, high seating/storage space, and ADAS level 2+ features. M&M is likely to start bookings from January 2025 and deliveries from end February 2025. 

Nuvama Institutional Equities sees initial annual BEV capacity at 90,000 units. "In our estimates, we have currently built in BEV volumes at 48,000 units in FY26E. M&M remains one of our top picks, led by expectations of revenue/core earnings CAGR at 15 per cent/18 per cent over FY24–27E; this shall sustain RoIC at 45 per cent-plus; retain ‘BUY’ with target price of Rs 3,700," the brokerage said.

Emkay Global said it is impressed by the strong specifications and competitive pricing for the two models, with the introductory prices 6 per cent and 22 per cent, respectively, below those of current top-selling models in targeted SUV segments. 

"Notably though, the EV category as a whole continues to see slow offtake amid customer worries around charging infra and resale value, which is likely to get exacerbated by the intensifying launch action in the EV industry over coming 6-12 months. Our estimates are unchanged. We retain REDUCE given that the best of the SUV launch cycle is now being behind," Emkay Global said. 

This brokerage values M&M 27 times September 2026  core earnings per share against 21.5 times for Maruti Suzuki India Ltd and 24 times for MSIL for Hyundai Motor India Ltd. 

MOFSL said while the pricing is certainly competitive, it remains to be seen how many new customers are attracted to M&M post this launch, given the lack of adequate charging infrastructure in the country. 

"We hence remain cautious on the incremental volumes that this segment can deliver, at least in the near term. While M&M has already exceeded its set target of 18 per cent RoE in FY24, it continues to maintain this target going forward as it aspires to balance between strong growth and healthy returns. We maintain a Buy rating on M&M, with a target price of Rs 3,420," it said.

The addressable market for BE 6e stands at 23,000 units per month and competing electric SUVs are priced at an average Rs 21.7 lakh per unit against the introductory pricing of BE 6e (59kwh battery variant) at Rs 20.40 lakh  per unit on road, Chennai, Emkay said. 

M&M believes the model will be category-creating as a result. 

"Addressable market for XEV 9e (top-2 variants in the ‘UV2’ and ‘UV3’ categories) stands at 18,000 units per month; competitors here are priced at Rs 30.20 lakh per unit (on road, Chennai); introductory pricing of XEV 9e (59kwh battery variant) stands at Rs 23.6 lakh/unit (on road, Chennai) by comparison. Prices of the larger 79-kwh battery variants to be announced in due course," Emkay noted.