Mahindra atom electrical automobile at Auto Expo 2020, on February 5, 2020, in Greater Noida, India.
Pradeep Gaur | Mint | Hindustan Times | Getty Images
Mahindra Group is not anxious about international gamers like Tesla getting into India’s extremely aggressive electrical car market, its CEO and managing director Anish Shah advised 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 mentioned 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 added.
Tesla is reportedly discussing plans to enter the EV house in India, which is the world’s third-largest auto market, in accordance with Reuters.
CEO Elon Musk met Prime Minister Narendra Modi in June and mentioned he has plans to “make significant investments in India.”
Despite the worldwide competitors, Mahindra has “not just survived but thrived” within the Indian market, mentioned 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 mentioned, including the corporate expects to carry out properly within the coming years.
Last week, Mahindra raised $145 million from Singapore’s state-owned investor Temasek for its electrical car unit at a valuation of as much as 805.8 billion Indian rupees ($9.8 billion), within the newest fundraising by the Indian automaker. Temasek will take as much as 3% stake within the EV unit Mahindra Electric Automobile Limited.
The firm mentioned it expects EVs to make up between 20% and 30% of its whole SUV gross sales by 2027.
Market potential
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,” in accordance with a report final yr by administration consulting agency Arthur Little.
It famous adoption charges remained very low — presently round 2% — as a result of an “absence of adequate EV infrastructure.”
Given present international provide chain disruptions and the federal government’s coverage of creating India autonomous, the report added, “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 mentioned. “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.”
Source: www.cnbc.com”