Indian automaker Mahindra & Mahindra announced on Thursday its plan to invest $1.44 billion over the next three years in its electric vehicle (EV) unit to stimulate growth. Despite this, the company is now also closely examining hybrid technology.

Mahindra, India's third-largest EV manufacturer, presently offers only one model, the XUV400, but plans to introduce a new lineup of EVs next year. The automaker, renowned for its 'Scorpio' and 'Thar' sport utility vehicles (SUVs), anticipates that electric variants will constitute 20% to 30% of its SUV sales by 2027.

"At this point in time, we feel good about the focus on EVs," Mahindra Managing Director Anish Shah said in a post-earnings press conference.

However, "if it's (hybrids) required, we'll be ready for that ... If there are significant changes in hybrid tech that cause it to be much more like an EV, then that's something we'll move into much faster," he added.

Automakers are increasingly broadening their strategies to explore beyond EVs, and Shah's remarks come shortly after Reuters' report that the Hyundai Motor Group intends to introduce its initial hybrid cars in India as early as 2026.

Hybrids, which utilise a combination of a gasoline powertrain and an electric motor, as well as EVs, each accounted for 2% of India's total passenger vehicle sales in the fiscal year 2024.

Earlier in the day, Mahindra topped quarterly profit estimates on steady sales of its SUVs.

Shares of the company rose as much as 4% to a record high, before paring some gains to close up 3%.

Image source: Bloomberg