Mahindra & Mahindra (M&M) sees the India–European Union (EU) Free Trade Agreement (FTA) as a “structural export opportunity” rather than a threat to its domestic Sport Utility Vehicle (SUV) business, with Group CEO and Managing Director Anish Shah asserting that fears of European imports undercutting local manufacturing are overstated.

Addressing concerns after the company’s Q3 FY 26 earnings, Shah said European carmakers would struggle to ship vehicles from the EU to India at prices lower than those already produced locally. Factoring in manufacturing, freight and inventory costs, he argued, imports would not gain a decisive cost advantage.

 “From a competitive standpoint, it does not impact us,” noted Shah.         

No import shock for domestic SUVs

Under the pact, tariffs on cars imported from the EU will be reduced in phases from 110% to 10%, subject to quotas. While acknowledging that a fully open regime could risk surplus European capacity being redirected to India, Shah said the agreement had been calibrated carefully.

“The government has balanced it well,” he said, noting that the framework allows greater market access without incentivising global automakers to shut Indian plants. Instead, he expects the deal to encourage scale, deepen the manufacturing ecosystem and enhance competitiveness. Drawing a parallel with China’s automotive rise, Shah emphasised that scale is central to long-term cost leadership.

Zero-duty access opens export window

For M&M, the bigger prize lies in exports. Shah said Indian automakers would gain the ability to sell significantly more vehicles into Europe at zero duty over time. “That’s an opportunity that is meaningful for us, and something we will take advantage of,” he said.

The company reported exports of around 12,000 units in the October-December quarter and is preparing for a broader overseas push as trade arrangements take effect.

Europe strategy tied to LHD rollout

M&M maintained that its European ambitions will accelerate as it rolls out left-hand-drive (LHD) versions of mainstream models by 2028. At present, M&M has limited LHD offerings, restricting its immediate ability to leverage the pact.

Over the next few years, several core models will be developed in LHD configurations, forming the backbone of our EU strategy,” revealed the company’s Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar. An upcoming lifestyle pickup, slated for launch in 2027, is also expected to anchor export ambitions in developed markets.