The passenger EV market has seen two sub Rs 10 lakh launches by as many companies in six months. With prices in the same band as compact sedans and premium hatchbacks, Tata Motors’ Tiago EV and MG Motor’s Comet are also enticing erstwhile non-EV consumers.
But SUV specialist Mahindra & Mahindra, which is pursuing its EV ambitions aggressively, believes that the sub Rs10 lakh segment is not for the M&M brand, at least in the short term.
Having tasted success with the XUV 700 and Scorpio, brand Mahindra has found its footing right in the premium category as the entry price of both models is above Rs 13 lakh.
Rajesh Jejurikar, executive director (auto and farm sectors), M&M said, “The Rs 7-8 lakh (EV) segment will be big and we have no doubt about that. The reason for us saying no to that segment is we do not think that’s where we want to take our brand, (which is) to take it to fleets (market).”
For EV segment leader Tata Motors, nearly one in every four customers of the electric Tiago has never owned a car before. The electric option has even overtaken other fuel variants of the Tiago, becoming the largest seller for Tata Motors. Almost half of its demand comes from outside of the top 20 cities.
Industry sources say the MG Comet, a two-door, city centric compact electric car, whose bookings started in May, has also received good response so far.
More product options in the sub Rs 10 lakh segment will be launched over the next couple of years.
For M&M, Jejurikar said, the decision not to pursue this segment is based on the company’s estimation of “what our brand should be and our right to win in multiple subsegments”.
The Mumbai-based company had developed an electric version of its smallest SUV called KUV100 to address demand from fleet or commercial buyers. But launch plans were eventually shelved following a change in M&M’s brand positioning.
M&M revived its journey into the EV space by starting with the fleet segment. After delivering the initial lot of electric versions of the Verito (rebadged Renault Logan) sedan to a Centre-funded agency, succeeding units were sold to fleet customers such as Blu Smart, an EV-only ride sharing company.
With the eVerito long discontinued and eKUV scrapped, M&M’s EV pipeline comprises products that are targeted at the personal buyer. Lined up for launch between 2024 and 2026, the five new electric SUVs are of varying sizes and will cater to different segments.
