In India's growing electric vehicle (EV) market, Mahindra & Mahindra, a key domestic automaker, is calling for a level playing field for both domestic and foreign competitors.
The urgency of this appeal comes as Tesla, the global EV giant, considers entering the Indian market, prompting Mahindra to emphasize the importance of boosting local manufacturing and ensuring fair competition (via Reuters).
Mahindra & Mahindra's (M&M) Vice President (VP) National Sales, Amit Sagar pose during the launch of Indias first Pick-up vehicle with 1,700 kg payload capacity in Ahmedabad on October 15, 2018. (Photo by SAM PANTHAKY / AFP)
Mahindra Cautions Indian Government of Tesla's India Entry
Anish Shah, Managing Director of Mahindra & Mahindra, has informed the Indian government that creating an environment that encourages both domestic and foreign EV manufacturers to invest in India should be prioritized.
In an interview at the World Economic Forum's annual meeting, Shah stressed the importance of a balanced approach, saying, "It should be a level playing field, and investing in India is important."
Mahindra's stance becomes particularly significant as the government contemplates lowering import taxes on electric vehicles, a move that has sparked concerns among domestic players.
Reuters notes that Mahindra and Tata Motors have privately urged Indian officials not to reduce the existing 100% import taxes on EVs, seeking protection for local firms and their foreign investors.
The core objective for Mahindra is clear - to prevent India from becoming solely an importer of EV products. "Our approach is essentially to create a stronger industry in India, and not to be in a situation where manufacturing is done outside India," Shah affirmed.
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Exec: Competition Does Not Faze Mahindra
India, one of the world's largest auto markets, sold a staggering 4 million cars last year, with only 82,000 being electric vehicles. However, the EV segment recorded an impressive sales growth of 115%, signaling a shift towards cleaner and sustainable transportation.
Mahindra has secured significant financial backing, raising around $400 million from Singapore's Temasek and British International Investment. In addition, private equity firms TPG and Abu Dhabi state holding company ADQ invested $1 billion in Tata in 2021, underscoring the growing confidence in the Indian EV market.
Addressing Tesla's proposed entry into India, Shah remarked that competition from global players does not faze Mahindra (via CNBC). Drawing on the company's resilience over the past two decades, he highlighted Mahindra's sustained leadership with close to a 50% market share in the light commercial vehicle segment and over 40% in farm equipment and tractors.
While Tesla is in talks to establish a manufacturing facility in India, it has also urged lower import taxes on electric cars. India, in response, is working on a new policy to potentially reduce import taxes on EVs to as low as 15%, provided companies commit to local manufacturing.
The Indian EV market is poised for substantial growth, with expectations that it will surpass 10 million units by 2030. Mahindra anticipates that EVs will constitute between 20% and 30% of its total SUV sales by 2027, aligning with the global shift towards sustainable transportation.
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