Mahindra and Mahindra will continue to "grow in the range of mid-teens to high teens" in the current financial year on the back of the newly launched XUV 3XO, which has obtained 50,000 bookings.

The company will maintain its thrust on both ICE vehicles and EVs with the upcoming launches of nine ICE models — three mid-cycle enhancements and six new SUVs — and seven battery electric vehicles (BEV).

Capacity will also be ramped up to 72,000 vehicles per month by 2025-26 from 49,000 vehicles per month in 2023-24 and 64,000 by 2024-25.

Talking about the XUV 3XO, M&M managing director and CEO Anish Shah said: "The current production capacity for XUV 3XO is 9,000 to 10,000 vehicles per month. With 50,000 bookings, we are at full capacity for the year. The sales from 3XO will double this year and will contribute to the growth prediction of mid to high teens in the current year."

The company sees no business case in selling hybrid cars as the government's focus has been on EVs.

Addressing the media at the announcement of its 2023-24 financial results, Shah said: "The government is incentivising electric vehicle (EV) transition," so the company will go for EVs with the plan for the seven BE launches by 2030.

"There is no material change in emissions in case of hybrid vehicles. The only advantage in hybrids is that of fuel efficiency. It is also a very expensive technology with two powertrains in a vehicle."

Internationally no government is providing any incentives for hybrids. If consumers demand hybrids and if there is a significant change in hybrid technology to make it cheaper, we might consider it," Shah said.

The company expects 20 to 30 per cent of its SUV sales in 2027 from EVs and 70 per cent from ICE vehicles.

"ICE vehicles are growing at a healthy rate and we will stay invested in the business and will continue to have an aggressive ICE portfolio," said Rajesh Jejuriker, auto and farm head, Mahindra and Mahindra.

"But from 2027 onwards we will also watch how the EV penetration and inflection point is going to pan out. Right now the electric penetration in India is about 1.5 to 2 per cent."

When asked about the global slowdown in EV sales, Jejurikar said: "EV penetration will increase in India from the current 1.5 per cent to 20 per cent quite easily. The next phase of growth from 15 per cent to 25 per cent will depend on how the charging network expands."