Mahindra is planning new products and investments, as well as firming up production plans, as it remains “extremely confident” about the country’s slow progression of electric car penetration over the next five years. According to a senior corporate executive, the Mumbai-based automaker anticipates a gradual transition to electric mobility, with fleet and sports utility segments leading the way in the domestic market.
“Our internal research tells us that 25 per cent of the existing SUV buyers would like to consider an electric SUV as their next purchase. The research also tells us that over the next 2-3 years we will see this kind of transition happening,” Rajesh Jejurikar said in an interaction. He stated that the company anticipates 20-30% of its SUVs to be electrified in five years. Mahindra is betting big on green mobility, and the first four electric Sports Utility Vehicles (SUVs) are set to join the market between December 2024 and 2026. The five electric SUV models will be released by the carmaker under two brands: XUV and an all-new electric-only brand named “BE.” Legacy brands will be marketed under the XUV name, while the all-new electric vehicle will be marketed under the “BE” brand.
Elaborating on the trends, Jejurikar noted that the electric penetration in the domestic market will start with households with multiple cars. “Also the fleet segment will move very quickly to electric as it makes economic sense for them,” he added. The offtake however for electric hatchbacks and sedans in the personal segment would be slow as the customers would not like to pay a higher price upfront for the only car in the family in absence of adequate charging infrastructure in place, Jejurikar stated. “In the SUV space, whether entry or mid-sized, there will be a much faster adoption as they are typically part of households which have more than one car,” he added.
Expounding on the tendencies, Jejurikar stated that electric adoption in the home market will begin with households that own several vehicles. Furthermore, the fleet market will rapidly transition to electric as it makes economic sense for them. However, sales of electric hatchbacks and sedans in the personal market would be slow since customers would not want to pay a higher upfront price for the lone car in the family in the absence of suitable charging infrastructure, according to Jejurikar.”In the SUV space, whether entry or mid-sized, there will be a much faster adoption as they are typically part of households which have more than one car,” he added.
When asked if the time was ripe for electric mobility to bloom in the country, Jejurikar said “It is both yes and no. Currently the penetration is 1 per cent in C segment and around 4 per in the B segment..is this 1 and 4 per cent going to go up to 30 and 40 per cent overnight, no it is not going to happen.” He further said “But we are going to see steps towards 10 per cent 15 per cent and which is why 20-30 per cent penetration in the next 4-5 years is a realistic road map for the segments which we operate in.” Last month, the business delivered nearly 30,000 SUVs to dealers, the most it has ever done in a single month. When asked why the corporation chose pure electric products over hybrids, Jejurikar replied it was in line with the government’s road map.
