Anish Shah, the CEO and managing director of The Mahindra Group, voiced optimism in the face of anticipated competition from multinational corporations targeting the competitive electric vehicle (EV) market in India, including Tesla. In an interview with CNBC’s “Street Signs Asia,” Shah underlined that the company has survived 20 years of severe competition in India and was unconcerned about Tesla’s possible entry.
Shah reviewed Mahindra’s past, emphasizing how the business had disproved doubts when foreign giants joined the Indian market. Despite early skepticism, Mahindra became the market leader for SUVs in terms of revenue. The CEO’s comments coincide with news that Tesla is in talks to create a foothold in the third-largest vehicle market in the world, India’s EV market.
Elon Musk, the CEO of Tesla, spoke with Prime Minister Narendra Modi in June and expressed plans to make large investments in India. Shah noted that Mahindra was well-positioned to deal with changing competition because to its strong position and history in the Indian market, notably in light commercial vehicles and agricultural equipment.
Mahindra’s electric car division recently received a large $145 million investment from Temasek, a state-owned investor in Singapore. The unit was worth up to $9.8 billion (805.8 billion Indian rupees) at the time of this investment. Temasek is slated to purchase a share of up to 3% in Mahindra Electric Automobile Limited as part of the agreement, demonstrating investor support for Mahindra’s EV initiatives.
Shah outlined Mahindra’s bold strategy, predicting that by 2027, between 20% and 30% of the company’s total SUV sales would be electric vehicles. A survey by management consulting company Arthur Little anticipated that EV sales might approach 10 million units by 2030, corresponding to an adoption rate above 30% across all vehicle classes. With India’s EV industry primed for major development. The research did highlight the 2% adoption rate that is currently in place, which is a result of the poor EV infrastructure.
Shah recognized the value of a strong supply chain for the Indian EV industry and mentioned Mahindra’s research center, which contributes to technical development. Additionally, he recognized the global character of automobile sector technology and compared it to the current semiconductor issues.
Mahindra is still committed to use its well-established position, technology skills, and financial backing to strengthen its position in India’s expanding electric vehicle industry despite changing market circumstances.