M&M Will not Copy Tesla, will Create Own EV Niche: Mahindra
Mumbai: Mahindra & Mahindra will have range of electric cars — right from a small car to a vehicle for shared mobility platforms like Ola and Uber to even a performance car under the Pininfarina brand, chairman Anand Mahindra said, reinforcing the company’s future bet on electric vehicles.
Addressing the shareholders at the 71st annual general meeting, Mahindra said he is not interested in being the Tesla of India. The company would rather create a differentiated offering than following Tesla. He said Mahindra has a strategy for all segments — right from ride-sharing in fleet business to premium vehicles. “We have just committed that we are working on high-end cars. Tesla was the pioneer, so Mahindra should develop its separate niche. There is no point in copying anybody, you have to differentiate yourself. We are spending significant amount of money on electric. We are ahead of the game,” said Mahindra.
Mahindra Electric, a subsidiary of Mahindra & Mahindra, has already invested about .₹ 500 crore in the EV business and has recently committed an additional .₹ 600 crore. The company currently imports the cell and packages and fits them into the vehicles.
He told shareholders that apart from shared economy, one of the biggest influencers of the future would be clean energy products — a segment, where government too is showing keen interest. GST (Goods and Services Tax) on electric cars is fixed at 12%, plus the industry also gets benefit of .₹ 1 lakh or so under FAME scheme, apart from waiver on road tax from some governments. However the industry should not rely on government subsidies to make a segment work, said Mahindra.
He told the shareholders that Mahindra Racing finished third in the recently concluded Formula E Racing competition ahead of global brands like Jaguar, and just behind Renault and Audi.