M&M has launched Electric Origin SUVs, the BE 6e and XEV 9e

M&M has launched Electric Origin SUVs, the BE 6e and XEV 9e, on November 26, 2024, in Chennai, with introductory prices of ₹18.9 lakh and ₹21.9 lakh, respectively.

These vehicles are built on the revolutionary INGLO architecture and powered by MAIA, which is described as the fastest automotive mind globally.

The BE 6e targets performance enthusiasts with a sporty design and features like a certified range of 682 km and acceleration from 0 to 100 km/h in just 6.7 seconds.

In contrast, the XEV 9e focuses on luxury and elegance, offering a refined driving experience with a certified range of 656 km with advanced safety features.

Both models come equipped with a high-capacity Lithium Iron Phosphate (LFP) battery, enabling fast charging from 20% to 80% in under 20 minutes using a 175-kW charger. These both models are being offered in two battery pack options namely 59 KwH and 79 KwH.

The BE 6e features an edgy silhouette and a race-inspired cockpit with twin-screen displays, while the XEV 9e boasts a sophisticated SUV coupe design with a luxurious three-screen infotainment layout.

Both models include advanced technology such as ADAS Level 2+ for enhanced safety and connectivity features that allow for over-the-air updates. Mahindra’s go-to-market strategy for the Electric Origin SUVs will roll out in a phased manner in the latter part of January 2025. Deliveries are expected to commence towards the end of February or early March 2025.
Few segment features which are unique to these product launches are: Infinity Sunroof with LED ambient lighting, Auto Car Park, Harman Sound system with Dolby Atmos among others.

On the financials front, the company has allocated ₹4,500 crores out of a total investment of ₹16,000 crores for the electric vehicle segment (over FY22-27 cycle), enhancing manufacturing capacity to produce up to 90,000 vehicles annually by March 2025. It has guided for 10,000 per month capacity for EV’s by FY25 end which will eventually be scaled to 18,000 per month capacity by FY26 end.

The current new models launched by M&M offers a good value proposition to customers and works well for its overall aim to have ~20-30% of SUV volumes as Electric Vehicles by 2027.
We have a positive view on M&M and retain our BUY rating on the stock amidst its consistent positive surprise on new product launches, ability to grow ahead of market and persistent focus on capital efficiency (RoE>=18%). We now value M&M at SOTP-based target price of ₹3,600 (15x FY26E standalone EV/EBITDA; 25% hold co. discount to investments, ₹615/share value for its Electric PV arm).