Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector) at Mahindra & Mahindra discusses the new GST slabs and overall impact on M&M's portfolio. He also discussed how the GST reforms will not only boost consumption but also help consumers to trade up.
#mahindra #gst #stockstowatch
For more videos subscribe to our channel: / @ndtvprofitindia
Visit NDTV Profit for more news: https://www.ndtvprofit.com/
Don't enter the stock market unaware. Read all Research Reports here: https://www.ndtvprofit.com/research-r...
Follow NDTV Profit here
Twitter: / ndtvprofitindia ,...
Questions asked in this interview
8
1:12Do you think that EV adoption can only grow from here?
2:43What portfolio in terms of M&M gets impacted, and is that a major one where you would see a price hike coming?
3:38So would that mean there would be some benefit to consumers as well from here on, and does that increase the potential in terms of demand?
5:53If we assume sales remain as they are — they will increase but base case — is there some sense of what the potential earnings impact at status quo sales could be for Mahindra and Mahindra?
6:47Do you expect such upward moves through the portfolio?
8:09For M&M, where do you see it from initial expectations for FY26 versus the bonanza that has come now?
10:08Can there be a big positive surprise on the upside?
The man of the moment from the company of the moment, Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sector at Mahindra and Mahindra, with us on the show. Mr. Jejurikar, good morning and thank you so much for joining in. It almost seems that Diwali at Mahindra and Mahindra started on the 3rd of September evening and will last until at least 31st December.
Well, firstly thanks for having me on the show. I hope this is a Diwali which lasts much longer than one quarter because I think this is a very fundamental shift in the way consumption and growth can happen. We have always believed that the automotive sector needs stimuli and taxation reform, since India has had the highest taxation. This is a really good move towards that. We are really excited, and as the Prime Minister said, it's a Diwali offer for customers, but I think this is the start of something really big.
Good morning, Mr. Jejurikar. I think the big relief has been that electric vehicle taxation has been kept as is. Just getting that overview from you. There was some concern that EVs above 20 lakh rupees would be taxed at a higher rate. Do you think that EV adoption can only grow from here?
So Tam, we have been hearing from government sources for a long time, which is why we have invested heavily in the electric story. EVs are the destination technology for the country, and the government has stayed with that policy guideline. Many of us at Mahindra and others have invested actively because we believe it is the destination technology. Staying with 5% GST is a very good signal. We have already seen as new products have come in from us and some competitors, EV penetration for us in the last quarter was 8% of our SUVs sold. For the industry, it was 2% last year and now 4%, and for us 8%. EV penetration is clearly on an upward path, and the 5% GST will be a strong enabler to continued growth momentum.
Mr. Jejurikar, good morning. Hal on this side. We are talking about the positive impact in terms of tractor and equipment on small cars and commercial vehicles. A quick clarification when it comes to high-end SUVs because you are talking about a tax rate of 40%. What portfolio in terms of M&M gets impacted, and is that a major one where you would see a price hike coming?
Sorry, it's not a price hike. The products which are going to be at 40% were right now at 48%. The way to think about it: it was 28% GST plus, say, 20% cess, so 48% total taxation. Now that goes down to 40% total. So even in that segment, there is an 8% gain.
Yes, it does. Looking at our complete portfolio: tractors gain from 12% GST to 5%, a 7% gain. Our commercial vehicle portfolio, especially LCVs less than 3.5 tons where we have over 50% market share, gains by another 10% drop from 28% to 18%. Then our SUV portfolio will gain between 8% and, for some SUVs up to 13% gain. Overall, every part of our portfolio gets a benefit. No change in EVs, which is good news, but everything else gets a benefit.
I read in a note, and you are perhaps the best analyst for your company, so I am asking this to you. The note said 23% of the M&M portfolio will be at 40% versus 50% with cess, and balance at 18% versus 28% earlier. Would that be a nice summation of the impact?
Multiple analysts are covering it differently. Let me play this out again so there is no confusion. Roughly, our total portfolio (auto and farm under M&M) consists of tractors at about 35,000-40,000 per month, gaining 7%. In the 18% slab, all our pickups (LCV less than 3.5 tons) about 20,000 per month. The ICE SUV portfolio is roughly 40,000-plus per month; of that, 40% will be in the 18% slab and the balance in the 40% slab. But even the 40% slab is a drop of 8% from 48%.
Just trying to understand, Mr. Jejurikar. If we assume sales remain as they are — they will increase but base case — is there some sense of what the potential earnings impact at status quo sales could be for Mahindra and Mahindra?
11 more exchanges in this transcript
Sign in free to read the rest of this interview. No card required.
Jejurikar, R. (2025, September 4). 5% GST On EVs Is A Very Good Sign For...: M&M Rajesh Jejurikar | How Will New GST Slabs Impact M&M? [Interview transcript]. NDTV Profit. CEOInterviews.AI. https://ceointerviews.ai/interview/1054282/
MLA
Rajesh Jejurikar. "5% GST On EVs Is A Very Good Sign For...: M&M Rajesh Jejurikar | How Will New GST Slabs Impact M&M?." NDTV Profit, 4 Sep. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1054282/.
BibTeX
@misc{jejurikar2025_1054282,
author = {Rajesh Jejurikar},
title = {5\% GST On EVs Is A Very Good Sign For...: M\&M Rajesh Jejurikar | How Will New GST Slabs Impact M\&M?},
howpublished = {Interview transcript, NDTV Profit. CEOInterviews.AI},
year = {2025},
month = {sep},
url = {https://ceointerviews.ai/interview/1054282/},
note = {Speaker-attributed transcript with timestamps}
}
