Speaking to ET, R. Velusamy, president, automotive technology and product development at M&M said while TCO (total cost of ownership) approach to EV development or how much one saves after switching from petrol or diesel cars to EVs may work in the short term for “early adopters”, in the long term, it’s the range, technology and overall experience that will help in creating new market segments and to grow sales.
"As long as you have the right range, and you are able to offer an incredible experience, the customer doesn’t care whether it's EV or ICE. I don’t think Elon’s (Elon Musk, CEO Tesla, SpaceX) vehicles are selling because they're electric. Many of the other OEMs (original equipment manufacturers) have made the mistake of TCO calculation,” Velusamy said. “Today’s customer wants everything --- from connectivity to their gadgets and multiple screens to a personalised experience,” he said.
Mahindra presently sells only one electric model--XUV4OO. The automaker is preparing for a major expansion into the EV segment with its ‘Born Electric’ (developed ground-up) range slated for launch from Q1 of calendar year 2025. In total, Mahindra plans to launch seven new EV models till 2030.
After surging more than 91% in FY24, India’s electric four-wheeler market is showing signs of cooling off. Sales fell 22% sequentially to 7,415 units in April—the lowest sales performance since January.
EV market leader Tata Motors conceded that the phase of early adopters in the EV market is getting over. “We are clear that the phase of early majority wanting to come in on an enthusiastic mode is probably getting over,” P. Balaji, chief financial officer, Tata Motors Group, said in a post-earnings call earlier this month.
Puneet Gupta, director at S&P Global Mobility, a sales forecasting and market research firm, pointed out that India is in an early stage of electrification and presently those buying an EV in India are experiential, aspirational, and young. “These buyers are tech savvy and won’t mind paying a premium for a vehicle packed with technology and high-end features. Therefore, Mahindra’s strategy may pay off.”
“Mahindra already has a customer base which is paying over Rs20 lakh for their petrol and diesel run models. This bodes well for them. Moreover, after the tepid response to the XUV4OO—which was priced competitively and pitted against Tata Motors’ Nexon.ev, it makes sense for Mahindra to have a premium positioning for their upcoming EVs,” he said.
Gupta however observed that Tata Motors is better positioned to launch EVs at competitive prices due to the company’s participation in the entire EV ecosystem through various PLI (productivity linked incentive) schemes and intense focus on this segment.
“Today’s car buyers are not looking at a car to commute from one point to another but seeing it as a moving office, home, or a café. Therefore, one is no longer discussing what is the right thing from an engineering point of view but what’s right from the customer's point of view,” said Velusamy.
He pointed out the strong customer reception to Mahindra’s XUV7OO and Scorpio N SUVs despite their comparatively higher price tags.
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