M&M Will not Copy Tesla, will Cre­ate Own EV Niche: Mahin­dra

The Economic Times - - Companies: Pursuit Of Profit - Ke­tan.Thakkar @times­group.com

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.

Anand Mahin­dra

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