Government Should Not Be Subsidising EVs in the Long Term: M&M

The progression of the electrification megatrend in India is also fueling the confidence of EV makers to build their business without any external stimulus. SUV major Mahindra & Mahindra, which refreshed its EV journey in the Passenger Vehicle (PV) with the launch of the born-electric SUVs XEV 9e and BE last November, says the EV industry is well on its way to be independent of any subsidy.

“Largely we feel that the government should not be subsidising vehicles in the long term (23:50) and EV is on a path where you need a subsidy for that transition (23:54) and over time you don't need that subsidy going forward. That has played out well in electric three-wheelers (23:59) and we see the electric transition very rapidly from ICE to EV (24:03) and subsidies will be expiring in a short period of time,” said Dr. Anish Shah, Group CEO and MD, Mahindra & Mahindra, in a press conference to announce the company's Q2 results.

The central government has already ended incentives for electric Passenger Vehicles, though some state governments still incentivise them. M&M says the electric PV segment is now becoming a mainstream segment. The OEM reports delivery of 30,000 units of its BEVs till date.  

“We see that a lot of the range anxiety barriers are going away as more and more it is spreading. The South is turning out to be a very good market for the Born Electrics,” said Rajesh Jejurikar, ED and CEO – Auto and Farm Sectors. Highlighting the growing EV adoption trend, he also said that many customers are using a BEV as their main car, with a monthly driving distance of over a thousand kilometres.

Jejurikar plans to share more insights during a scheduled launch of XEV 9S – a 7-seater version of its XEV 9e, on 27th November. The event will also commemorate the first anniversary of the twin launches of XEV 9e and BE 6.

M&M claims its BEVs have a share of over 8 per cent in its overall SUV sales, which is higher than the 5 per cent EV penetration in the domestic PV industry.