Mahindra & Mahindra said it is well-insulated from China’s rare-earth magnet export restrictions, with supplies secured through March 2026, as the Indian automaker moves to reduce reliance on critical imports by turning to substitutes such as light rare-earths and ferrites.
The comments were made by Rajesh Jejurikar, CEO of Mahindra’s Auto and Farm Sector, during a post-earnings call following the company’s better-than-expected quarterly results. “We have taken a variety of actions to de-risk supply,” Jejurikar said. “We are comfortably covered through March 2026.”
The announcement comes amid rising concern over China’s move in April to restrict exports of rare-earth magnets, which are crucial for electric vehicle (EV) motors and other automotive components. China currently accounts for 90% of global supply. Several automakers, including Hyundai India, have downplayed immediate risks, citing sufficient inventory.
Mahindra reported a 32% year-on-year increase in net profit for the June quarter, reaching 34.50 billion rupees ($394.6 million), beating analyst estimates of 30.98 billion rupees, according to LSEG data. The company attributed the strong performance to resilient rural demand, steady tractor sales, and a robust SUV lineup that continues to attract buyers even as overall industry growth tapers.
While India’s domestic car sales growth has slowed — rising just 2% in fiscal 2025 compared to double-digit gains in the previous two years — Mahindra has defied the trend. The automaker, best known for its Scorpio SUV, said SUV sales surged 22% in the quarter, supported by new model launches and increasing EV demand. Tractor and farm equipment sales were also up 10%.
Jejurikar reiterated Mahindra’s projection of up to 19% SUV sales growth in fiscal year 2026, underscoring the company’s bullish outlook amid industry-wide concerns about cooling demand. Shares of Mahindra closed flat on the day but have gained 38% so far in 2025.