Challenge global players to invest locally and compete, says Anish Shah, MD, Mahindra & Mahindra 

At a time when the government of India is reviewing its import duty to attract foreign EV makers like Tesla to enter the market, Anish Shah, MD of Mahindra & Mahindra has challenged global players to invest locally and compete.

Speaking to the media post the Q2 FY24 earnings call, Shah said, "We would want to throw a challenge - if you want to do it, come invest in India and compete with us." 

On a specific query on whether the lower duty granted to premium EV makers (like Tesla) may put domestic players on the back foot, Shah said, "Mahindra has demonstrated so far its ability to win and play with the best products in the marketplace. We have beaten all the global majors in India. We are making in India for the world now. We would welcome all global players to come and invest in India and compete with us," he added.  

The policy being considered may allow automakers to import fully-built EVs at a lower rate of 15-30%, versus 70-100% at present for cars priced over $40,000, Reuters had reported in August citing government officials.

However, the domestic industry feels this may impact the local manufacturers. Piyush Goyal, the commerce minister in September had assured that, “The government will come out with a policy that will have stakeholder consultations with all industry bodies,” in order to protect the interest of all stakeholders to ensure impartiality.

Mahindra & Mahindra on its part has committed over Rs 10,000 crore for EVs and has aggressive plans to launch close to a half a dozen SUV EVs starting December 2024, based on its grounds-up “Inglo” platform for its future EVs. 

The company has already carved out a dedicated unit for electric vehicles called Mahindra Electric Automobile Limited and it has already entered into an agreement with private equity investors to infuse $250 million from BII (at a $9.1 billion valuation) and $145 million from Temasek (at a $9.8 billion valuation). 

Mahindra & Mahindra has also entered into global partnerships with Volkswagen Group, LG Chem, Farasis, and BYD for sourcing battery cells, electric motors, and other components along with other marque suppliers.  

While its recent model XUV 400 hasn’t taken off as expected, the company will be revamping the model in less than a year, to restart its EV journey, which will entail the company launching one new EV almost every six months, starting 2025. 

The company forecasts a 30% EV penetration or 2 lakh EVs in total sales by the end of 2027.