Even as sales of electric vehicles show signs of a sharp moderation, Mahindra and Mahindra (M&M) said that it is “more optimistic” about the EVs in India. The comments come in the context of upcoming launch of its two 'born electric' SUVs - XEV 9e and the BE 6e - later this month.
“We are more optimistic than earlier. You have consistently heard us say that the market will do very well with good launches. As the quality of products improves, there will be customers who will come in. We have seen a very good launch recently. And they are doing very good numbers, which is very encouraging”, Rajesh Jejurikar, ED, M&M Auto division said at the company's post Q2FY25 results press conference.
In September 2024, sales of electric SUVs and MPVs in India fell to a 19-month low of 5,733 units, a year-on-year decline of 9%. Market leader Tata Motors’ market share fell to 61% from 68% in the same period last year.
Jejurikar added that EV penetration in India is at a nascent stage. "The west has seen some kind of stagnation after getting to 15%. We are at 1-2% penetration. So we have a long way to go," he said.
The upcoming launch of electric SUVs is part of M&M's broader strategy to establish itself as a leading players in the EV sector. The company had earlier shared an expectation of 20-30% EV penetration by 2027.
"Our belief system has significantly reinforced that the right products will create huge opportunities. The point is there is space for good products," Jejurikar adds.
Hyundai India and Maruti Suzuki, too are planning to unveil their first mass-market electric SUVs in early 2025. M&M's Born Electric portfolio includes six battery-powered SUVs by the end of the decade. The cars are built on the INGLO architecture, which has been crafted with “an Indian heart and a global outlook”, M&M has said.
The board of Mahindra & Mahindra had also approved an investment of Rs 12,000 crore into its electric business MEAL over the next three years.
The XEV 9e and BE 6e represent Mahindra’s foray into premium and performance electric segments. According to Mahindra, the XEV 9e has been designed to set new standards in electric luxury, while the BE 6e promises strong, performance-driven capabilities. Mahindra describes these vehicles as “Indian icons” ready to make a mark globally through distinct design and cutting-edge technology. The BE 6e is set to be a premium option above the XUV400, competing with models such as the Tata Curvv, MG ZS EV, and MG Windsor EV. Meanwhile, the XEV 9e will face competition from the soon-to-launch Tata Harrier EV.