Mahindra and Mahindra (M&M), which has set an ambitious target of deriving 30 percent of its total Passenger Vehicle (PV) sales from battery-driven Sports Utility Vehicles (SUVs) by 2027, is betting big on its recently unveiled electric origin products. This marks a strategic shift aimed at challenging Tata Motors, which is the undisputed leader in the domestic electric Passenger Vehicle (PV) market.
Tata Motors currently dominates the EV landscape, accounting for nearly 65 percent of the total Electric Vehicle (EV) sales in the country, thanks to its early-mover advantage and a wider product portfolio including models like Tiago EV, Tigor EV, Nexon EV and Currv EV. As per Vahan (a government vehicle registration portal) data, out of 79,875 units of EVs registered this year so far, 50,762 units were Tata Motors products.
“Our multi-powertrain suite of Curvv, Nexon iCNG and Nexon.ev 45 has garnered strong consumer interest as we continue to ramp up deliveries in Q3,” stated Shailesh Chandra, MD, Tata Motors, while declaring the company’s Q2 FY 25 results.
While Tata Motors spokesperson didn’t respond to queries sent by Moneycontrol, a senior company official had earlier stated that the sales of its EV sales were impacted by the lapse of certain subsidies on its fleet sales (with the introduction of PM E-Drive Policy).
M&M offerings
Mahindra has unveiled two ground-up battery-driven models—BE 6e and XEV 9e — which are priced at Rs 18.9 lakh (ex-showroom) and Rs 21.9 lakh (ex-showroom), respectively and are based on the INGLO platform. To be available in 59 kwh and 79 kwh battery packs, the e-cars have a claimed range of 500-km+ per charge. A senior company official stated that the newly launched EVs will be rolled out in January 2025, and deliveries will commence during Q4 FY 25.
According to Rajesh Jejurikar, ED & CEO, Auto & Farm Division, M&M, “These new models are positioned as lifestyle experiential products that are offered at accessible price points.” He revealed that M&M has invested Rs 4,500 crore for design, development, capacity creation, etc., of these two models.
He noted that these products will attract customers who are looking to buy cars from super-premium or mass-market brands. “We have launched Pack 1 of BE 05 at Rs 18.9 lakh, which will open up a huge segment. We expect to garner a significant chunk of volumes from the Utility Vehicle segment (of the ICEV market), priced in the range of Rs 20-30 lakh and has a market size of 18,000-23,000 units per month. We are really going to play in that segment.”
When asked about EV offerings by rivals such as Tata Curvv EV, and the upcoming Maruti Suzuki eVitara, Hyundai Creta EV, etc., he said, “We don’t focus on the competition but on our consumers. While competition is welcome, we believe our products will excite the market and grow the EV segment, which is just 2 percent of the overall PV market.”
More choice for consumers
Auto analysts believe Mahindra’s new e-SUVs could offer competitive pricing, potentially narrowing the gap between the two automakers. However, views remain divided on whether Mahindra can achieve the necessary volumes to threaten Tata Motors’ market leadership.
Ravi Gupta, MD, JATO Dynamics India, said the electric vehicle market is nascent and the focus of OEMs is to increase choices for consumers so that the market can be expanded. In his view, “Any new launch activity is welcome. The customer is looking for price value, range, development of charging infrastructure. We are far away from a high competitiveness situation,” noted Gupta.
Puneet Gupta, director at S&P Global Mobility reckons that the the entry of Mahindra into the EV market is a significant boost for India’s electric mobility ecosystem and will complement Tata Motors, which has been the frontrunner in driving EV adoption single-handedly.
“Mahindra’s recently unveiled EV products are undoubtedly world-class, showcasing advanced features and global appeal. However, Tata Motors has a clear advantage with a presence across all segments, including the sub-Rs 10 lakh category, whereas Mahindra’s focus remains on premium offerings. Additionally, Tata’s integrated ecosystem—spanning Tata Power, Tata Chemicals, Tata Steel, and the ongoing electrification of JLR—further strengthens its position,” said Gupta.
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