Compete with us on equal terms: Mahindra & Mahindra to global brands

Compete with us on equal terms: Mahindra & Mahindra to global brands

Home-grown SUV heavyweight Mahindra & Mahindra (M&M) said it is ready to compete with any global brand in India in the electric vehicle space on the assumption of being provided a level playing field where norms are the same for all.

Rajesh Jejurikar, executive director - auto and farm sectors, Mahindra & Mahindra said, “Our role is to de-risk our supply chain to the extent we can create products that are capable to compete against anyone in the world.”

Chinese automakers like BYD, Chery and Nio are fiercely competing against established legacy brands like Volkswagen, Ford and Toyota in their own backyard for a slice of the world electric vehicle market. But unlike many of the developed markets, the Indian automotive industry is insulated from the Chinese onslaught thanks to the policies of the government.

While India’s electric vehicle supply chain comprising battery cells and rare-earth magnets overwhelmingly depends on China, home-grown brands who have done multiple EV launches in recent years, say that regulatory norms should be the same for all parties, including the Chinese, thus making it a level playing field.

While Chinese EV companies have been eager to invest in India, Jejurikar’s statement comes a day after India witnessed the inauguration of the country's first Tesla Centre in Gurugram. The US-based EV giant has been lobbying hard for a lower import tax without committing to the Centre’s demand for a local production in return.

“We welcome anyone to compete with us on equal terms (a level playing field) and that is our proposition. If we have a certain localisation norm for Indian companies, (then) follow the same,” Jejurikar added.

M&M on November 27 launched the XEV 9S - its third EV product in India. Starting Rs 19.95 lakh, the seven-seater sport utility vehicle is priced higher than the Kia Carens Clavis EV (Rs 17.99 lakh) but lower than the five-seater Tata Harrier EV (Rs 21.49 lakh).

BYD, the world’s largest EV maker, who has been keen on expanding operations in India, cannot invest in the country because of Press Note 3 which mandates that all investments from countries sharing a land border with India must receive government approval.

BYD, which is the fifth largest EV maker with monthly volumes of around 500-600 units, has to import its units to sell in India. Another Chinese automaker Great Wall Motor Co gave up its India ambitions after failing to secure regulatory clearances.

India’s electric car segment generates 15,000-18,000 units a month making it a nearly 200,000 units a year market. Powered by vehicles developed by Chinese company SAIC, JSW MG Motor, is the country’s second largest EV company with a market share of 25%. Home grown brands – Tata Motors and Mahindra & Mahindra – have a combined market share of 62%.