'At that tipping point': EV adoption to increase in the next two to three years, says M&M

The auto industry is set to witness an increase in electric vehicle (EV) adoption in the next two-three years, according to a top official in automobile company Mahindra & Mahindra (M&M). 

“With public charging infrastructure coming in, I think we are at that tipping point where, in the next two to three years, we'll really see that pivot happening for EV adoption,” says Veejay Nakra, President of the automotive division at Mahindra & Mahindra. 

Mahindra & Mahindra, the country’s largest SUV manufacturer, last week announced the prices of its top variants of electric-origin SUVs—BE.6 and XEV.9e. The top variant of BE.6 will be priced at Rs 26.90 lakh, whereas the top variant of XEV.9e will be available at Rs 30.50 lakh. 

"I think till the recent past, most of the EVs coming into the category were ICE-converted (internal combustion engine-converted) EVs. It's already in the recent past that we've started seeing electric-origin SUVs come out, whether and from some of our competitors, and there'll be many more that will get launched in the coming year,” says Nakra. 

With the launch of its electric-origin SUVs, the company is eyeing premium customers. The company will initially produce 5,000 units of its electric-origin SUVs, with a key focus on the domestic market. 

“If you look at the trend in the last couple of years, there is actually a movement in the country around premiumisation and sophistication. Customers want premium features. They want sophisticated interiors. They want that kind of ride and technology, etc. So all of this put together has gone into the approach to our strategy,” says Nakra. 

Of the Rs 16,000 crore investment the company has earmarked for the period between FY22 and FY27, the company has utilised Rs 4,500 in EV manufacturing. 

Notably, unlike its competitors, Mahindra & Mahindra is not keen on exploring battery-as-a-service (BaaS) for its EV portfolio. According to Nakra, while BaaS as a strategy has worked out for some players, for Mahindra & Mahindra, the strategy is different with different target audiences. 

“I think it depends on who’s your target audience and what's your strategy. Our target audience and strategy are about giving the best technology at the best possible price with a great finance offer. So I think different players have their own innovative strategies when they come to market, and to a very large extent, that is dependent on who you are positioning the product. So from our point of view, this is what we bring, which is for us; it's not so much about the battery-as-a-service,” says Nakra. 

“For us, it's about making the best available with the best range, which is exactly what the customers are looking for, at a great finance package, and, needless to say, at great ex-showroom prices. So I think for us, that's our strategy,” he adds.