Despite the growing emphasis on electric vehicles (EVs), Mahindra is set to make a significant impact in the ICE segment with the development of an entirely new platform. While Mahindra is betting big on EVs, it isn’t planning to leave the ICE segment anytime soon. On the contrary, Mahindra is developing an entirely new ICE platform that will be used for next-gen Bolero.
Strategic Importance of the New ICE Platform
The development of the new ICE platform is not just limited to the Bolero; it represents a strategic move by Mahindra to strengthen its position in the SUV and pickup segments.
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- New ICE Platform for Mahindra: The company is developing a cutting-edge internal combustion engine (ICE) platform, signaling a commitment to traditional automotive technology alongside its electric vehicle (EV) endeavors.
- Coexistence of EVs and ICE: While Mahindra is making strides in the EV space, the development of the ICE platform reflects a strategy of coexistence, acknowledging the ongoing demand for traditional engine vehicles.
- Market Dynamics Consideration: Mahindra's approach aligns with market dynamics, recognizing that in certain markets, challenges such as infrastructure limitations and cost considerations continue to drive the demand for ICE vehicles.
New Bolero market strategy
The next-gen architecture to be used for new Bolero is codenamed U171. Development of the new architecture is expected to cost more than Rs 2,000 crore. This is around 1/5th of the Rs 10,000 crore that Mahindra has committed for its electric vehicle business. It is to note that Bolero will also get its electric version. New-gen Mahindra Bolero Render Talking about next-gen ICE Bolero, the new U171 platform will be used for at least 3 new SUVs. Mahindra could be targeting annual sales of around 1.5 lakh units with these new SUVs. Volumes are expected to double when pickups based on the new U171 platform are launched. The first model based on the new platform is expected to go on sale in 2026-2027. New-gen Bolero will continue to cater to its customer base in the hinterlands. Despite being more than two decades old, the Bolero brand continues to deliver strong results. It is also a popular choice for commercial vehicle buyers. While urban dwellers prefer newer offerings such as Scorpio N, XUV700 and Thar, Mahindra Bolero is preferred across smaller towns and cities. New Bolero will aim to provide a better overall experience. New-gen Mahindra Bolero Render The Bolero family currently has the Bolero Classic and Bolero Neo SUVs. The pickup range has Bolero pik-up, Maxx pik-up, Maxi-truck plus and Bolero Camper. Bolero SUVs contribute around 20% to Mahindra’s overall sales, averaging around 8k to 9k units per month. New-gen Mahindra Bolero Render Share in profits is likely to be higher in comparison to the sales volumes. Bolero pickups also register strong sales, allowing Mahindra to dominate with a market share of more than 60% in the pickup truck segment.
Mahindra ICE SUVs to remain primary volume generators
Although Mahindra has plans to introduce multiple new EVs in the coming years, much of the sales will come from its ICE range. This is likely to be the case till at least 2030. Over the next 3-5 years, it is possible that Mahindra EV sales may reach 30% of the company’s overall sales. In that case, more than 2/3rd, i.e. around 70%, will still come from ICE SUVs. As of now, only around 1% of Mahindra’s bookings is for EVs. Most of it is for XUV400. New-gen Mahindra Bolero Render The transition period, from ICE to EVs, will be quite challenging for Mahindra. For several years, the company will have to seamlessly juggle both the portfolios. Mahindra has some plans such as developing fungible manufacturing capacities. It will help reduce overall cost and allocate production resources, as per requirement.
Despite a commitment of over Rs 10,000 crore for its electric vehicle business, Mahindra & Mahindra has not lost sight of its bread-and-butter models and has big plans to reinforce its internal combustion engine portfolio as well for the coming decade. A detailed investment plan and product portfolio is likely to revealed in the coming year. M&M, which reignited the brand with the Thar, XUV and Scorpio nameplates over the last few years, is readying to introduce a new generation of its old warhorse, the Bolero, with a next-generation architecture called U171. The platform could call for an investment in excess of Rs 2,000 crore in the coming decade.