Mahindra bets on premium electric SUVs to boost market share

Chennai: Mahindra & Mahindra has launched a new range of electric vehicles as the country's no. 2 SUV maker by volume looks to boost its market share by entering segments dominated by rivals Hyundai Motor and Toyota.

Mahindra launched the smaller sporty BE 6e and luxurious XEV 9e electric SUVs late on Tuesday. The vehicles have a driving range of more than 500 km (311 miles) on a single charge, the company said, and are priced starting at around $22,500 and $26,000, respectively.

With its smaller SUV, Mahindra will enter India's fast-growing compact SUV market, which grew nearly 20 per cent in the first six months of the current fiscal year and is dominated by Hyundai's Creta and Toyota's Urban Cruiser Hyryder - both priced between around $13,000 and $24,000.

However, the rival offerings are either hybrids or petrol fuelled. Mahindra says that gives it an edge in terms of running costs.

"We believe we have a very competitive offering which will create a category," Mahindra's Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said during Tuesday's event.

India's EV market is small, making up about 2 per cent of total car sales of 4 million last year, but the government wants to increase EVs' share to 30 per cent by 2030.

While Tata Motors currently dominates the EV market, Mahindra had only one electric model before the launch of the two SUVs that will help it drive "further market share gains", investment firm Jefferies said in a note.

Shares of Mahindra rose as much as 3 per cent on Wednesday.

The two electric SUVs are fitted with plush interiors and a wide touchscreen that stretches from the driver to the front passenger.

The carmaker plans to start by manufacturing 90,000 units of the two EVs a year, before raising it to 200,000 units by March 2026.

It expects to begin deliveries of the first vehicles by the end of February.

Mahindra wants EVs to form at least 20 per cent of its SUV sales by 2027, and will launch five more electric models by 2030.

Mahindra said on Tuesday it had spent more than $500 million on developing the new platform for its EVs, and on manufacturing the two SUVs, from a planned five-year EV budget of nearly $2 billion between 2022 and 2027.