Mahindra advocates for fair competition in EV market

Indian automaker Mahindra & Mahindra has urged the government to establish a level playing field for both domestic and foreign players in the electric vehicle (EV) sector, emphasising the importance of promoting local manufacturing. Mahindra Managing Director Anish Shah, addressing concerns about Tesla’s potential entry into the Indian market, stated that global EV manufacturers should be encouraged to invest in India. The move comes amid discussions on reducing import taxes, with Mahindra and Tata Motors privately urging officials not to lower the existing 100% import taxes on EVs. 

In an interview at the World Economic Forum annual meeting, Shah emphasised Mahindra’s commitment to fostering a robust EV industry within India. He expressed the company’s focus on preventing a scenario where manufacturing shifts outside India, turning the country into a mere importer of EV products.

India, having sold 4 million cars last year with only 82,000 being EVs, is witnessing significant growth in the nascent EV segment, recording a sales increase of 115% compared to the previous year. Mahindra, having secured around USD 400 million from investors like Singapore’s Temasek and British International Investment, is dedicated to the EV sector’s future. Shah disclosed plans for Mahindra’s EV unit to go public but not before 2029, aiming to demonstrate substantial success in the business.

On the other hand, Tesla has proposed establishing a factory in India while seeking lower import taxes for electric cars. India is contemplating a new policy to reduce import taxes on EVs to as low as 15% for companies committing to local manufacturing. However, concerns within the Indian industry have surfaced, suggesting that Tesla’s entry might jeopardise future fundraising for Indian EV companies, particularly if the import tax regime becomes unstable or unfavourable.