Mahindra & Mahindra, Nomura said in a note dated January 14, has seen a “strong customer response across both the ICE and EV portfolios” after the launch of the refreshed XUV 7XO and the all-electric XEV 9S, with the two models together clocking 93,689 bookings by 2 pm on January 14, the very first day bookings opened.
Mahindra’s SUV push gathers speed
“XUV 7X0 and XEV 9S are off to a strong start,” Nomura wrote, adding that the launches “meaningfully strengthen MM’s positioning in the premium SUV space, with competitive pricing and a materially improved feature set supporting demand visibility.”Mahindra launched the updated XUV 7XO on January 5 at an introductory price of Rs 13.66 lakh for the first 40,000 units, while the seven-seater electric XEV 9S was introduced on November 27 at an introductory price of Rs 19.95 lakh. Nomura currently builds in volumes of about 7,500 to 7,800 units a month for the XUV 7XO in FY26 and FY27, and around 3,000 to 4,000 units a month for the XEV 9S over the medium term.
The brokerage estimates that electric vehicles account for about 15% of the combined order book of the two models, warning that the “strong initial booking momentum for both models presents an upside risk to our volume assumptions.”
Nomura expects Mahindra’s SUV volumes to outpace industry growth, forecasting growth of about 18%, 11% and 7% over FY26, FY27 and FY28, translating into monthly sales of 54,000, 60,000 and 65,000 units respectively. That outlook includes battery electric vehicle sales of 4,400 units a month in FY26, rising to 7,400 in FY27 and 7,900 in FY28.
The brokerage reiterated its Buy rating on Mahindra & Mahindra with a target price of Rs 4,355, compared with a closing price of Rs 3,650 on January 14.
Bajaj cuts EV entry price, Nomura stays neutral
By contrast, Nomura remained on the sidelines on Bajaj Auto after the company unveiled the Chetak C25 electric scooter at an introductory price of Rs 91,400, its lowest-priced Chetak yet.
The new variant, which sits below the existing 30 and 35 series, is aimed squarely at price-conscious and first-time EV buyers. It is powered by a 2.5 kWh battery with a claimed range of 113 km, a top speed of 55 kmph and a charging time of 2 hours 25 minutes for a 0-80% charge.
Nomura said the launch “lowers the entry price point within the Chetak portfolio, expanding Bajaj’s addressable market in the electric scooter segment,” adding that the model is “positioned to cater to price-conscious and first-time EV buyers, balancing affordability with core features.”
Still, the brokerage flagged that features and boot space have been trimmed compared with higher-end Chetak variants, though it believes the scooter remains “adequate for daily commute use, with decent range and charging time for its segment.”
Nomura is modelling overall volume growth of 10%, 9% and 6% for Bajaj Auto over FY26, FY27 and FY28, with EBITDA margins of 20.9%, 21.8% and 21.7% respectively. It sees improvement in domestic market share as a potential catalyst for re-rating but said the stock is already trading at about 21.4 times core FY28 earnings.
The brokerage maintained its Neutral rating on Bajaj Auto with a target price of Rs 9,814, implying an upside of just 2.4% from Wednesday’s closing price of Rs 9,580.
“Ather (ATHERENE IN, Buy) and TVS (TVSL IN, Buy) continue to be our preferred picks in the 2W space,” Nomura said, highlighting its view that while Bajaj’s EV push broadens its reach, the sharper upside, for now, lies elsewhere.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)