Mahindra atom electrical vehicle at Auto Expo 2020, on February 5, 2020, in Greater Noida, India.
Pradeep Gaur|Mint|Hindustan Times|Getty Images
Mahindra Group isn’t stressed over international gamers like Tesla going into India’s extremely competitive electrical car market, its CEO and handling director Anish Shah informed CNBC.
“We’ve seen tremendous competition in India over the last 20 years. So Tesla or anyone else coming in does not faze us,” Shah stated on “Street Signs Asia”Tuesday
“At one point, Mahindra was written off when all the global majors were coming into India. Today, we continue to have the number one market share in SUVs from a revenue standpoint,” he included.
Tesla is apparently talking about strategies to go into the EV area in India, which is the world’s third-largest car market, according to Reuters.
CEO Elon Musk fulfilled Prime Minister Narendra Modi in June and stated he has strategies to “make significant investments in India.”
Despite the international competitors, Mahindra has “not just survived but thrived” in the Indian market, stated Shah.
“We have close to a 50% market share in the light commercial vehicle segment. We continue to have 40% plus market share in farm equipment and tractors,” the CEO stated, including the business anticipates to carry out well in the coming years.
Last week, Mahindra raised $145 million from Singapore’s state-owned financier Temasek for its electrical car system at an evaluation of as much as 805.8 billion Indian rupees ($ 9.8 billion), in the most recent fundraising by the Indian car manufacturer. Temasek will use up to 3% stake in the EV system Mahindra Electric Automobile Limited.
The business stated it anticipates EVs to comprise in between 20% and 30% of its overall SUV sales by 2027.
Market capacity
India’s EV market “will cross sales of 10 million units by 2030, with an overall adoption rate of more than 30% across different vehicle classes,” according to a report in 2015 by management consulting company ArthurLittle
It kept in mind adoption rates stayed extremely low– presently around 2%– due to an “absence of adequate EV infrastructure.”
Given existing international supply chain interruptions and the federal government’s policy of making India self reliant, the report included, “It is important that India creates its own indigenous solutions and a supporting domestic value chain.”
Shah highlighted that “supply chain obviously is an important part” for India’s EV market.
“We do have a research center in India that develops a fair bit of technology as well,” he stated. “But the auto industry technology is global. To that extent, there is a dependence similarly with semiconductors. And we’ve seen some of the challenges in that in the last couple of years.”
