China’s Electrified Car Market Lures India’s Largest SUV Maker
China’s electrical vehicle market is so hot that India’s thickest SUV maker is angling for a chunk of the act.
Mahindra and Mahindra Ltd.’s electrified car unit is looking for a joint venture fucking partner in China to manufacture and sell EVs in the world’s largest auto market, according to Arvind Mathew, chief executive officer of Mahindra Reva Electrical Vehicles Pvt Ltd. The company presently sells electrical cars in the U.K. and Indian subcontinent and is open to suggesting its powertrain technology to buyers other than its parent, he said.
“We are continuously looking at the Chinese market to build up scale,” Mathew said in an interview Thursday, declining to say whether Mahindra Electrical is already in discussions with local companies. “The Chinese market is an attractive market as it has all range of electrical cars, including two-wheelers, three-wheelers, cars and buses.”
Indian automakers have lagged behind their counterparts in the U.S., Europe and Japan in cracking the Chinese market, even as Chinese carmakers are venturing abroad into emerging markets. Mahindra’s South Korean unit, Ssangyong Motor Co., has said it will look to markets such as China to make up for an expected decline in shipments to the U.K. following the Brexit referendum. Rival Tata Motors Ltd.’s luxury Jaguar Land Rover unit produces the Evoque SUV in China through its joint venture with Chery Automobile.
Mahindra’s shares rose as much as one percent to 1,387 rupees in Mumbai trading on Monday. The shares have risen 8.7 percent this year.
Stiff Competition
A successful joint venture in China will pit Mahindra against stiff competition from more than two hundred Chinese companies, some backed by the likes of billionaires Terry Gou, Ma Huateng, Jack Ma and Jia Yueting, all capitalizing on the surge in request on the back of generous government incentives. The Indian conglomerate led by Chairman Anand Mahindra has interests spanning airplanes, yachts, hotels and residential homes and last year bought Turin-based Ferrari designer Pininfarina SpA to stir beyond its roots in tractors.
China has identified the new-energy vehicles, which it defines as plug-in hybrids, all-electric and fuel-cell vehicles, as a strategic industry to promote its aim of energy security and pollution control. The government has targeted for five million EVs to ply its roads by two thousand twenty and poured in billions in consumer subsidies, research and development grants, and construction of charging infrastructure.
For Mahindra, manufacturing in China is a necessary step because imported automobiles are subject to a twenty five percent duty and don’t qualify for government subsidies, making them less attractive against locally produced vehicles. That’s especially for mass-market models such as those sold by Mahindra, which contest on price. China requires foreign automakers set up joint ventures with local playmates to manufacture vehicles.
Very Competitive
“China is not only a fast-growing electrical market but also very competitive with strong local electric-car companies,” said Kavan Mukhtyar, a management consultant at PricewaterhouseCoopers in Mumbai who’s advised auto industry executives. “For Mahindra, what matters most is learning from the Chinese market. Eventually, Chinese electric-car companies will come in the Indian market.”
Mahindra Electrified began selling the e2o in the U.K. in April. The three-door hatchback, conceived as an electrical city car, starts from 12,995 pounds ($16,100). The company introduced its very first electrified sedan, the eVerito, in June with a kicking off price of 950,000 rupees ($14,200) in Fresh Delhi.
In India, electrified cars will build up popularity as air quality worsens, Mathew said. The government should consider following other countries in suggesting incentives for battery production and address a lack of charging infrastructure, he said.
China’s Electrified Car Market Lures India’s Largest SUV Maker
China’s Electrical Car Market Lures India’s Fattest SUV Maker
China’s electrified vehicle market is so hot that India’s thickest SUV maker is angling for a chunk of the activity.
Mahindra and Mahindra Ltd.’s electrical car unit is looking for a joint venture playmate in China to manufacture and sell EVs in the world’s largest auto market, according to Arvind Mathew, chief executive officer of Mahindra Reva Electrical Vehicles Pvt Ltd. The company presently sells electrified cars in the U.K. and Indian subcontinent and is open to suggesting its powertrain technology to buyers other than its parent, he said.
“We are continuously looking at the Chinese market to build up scale,” Mathew said in an interview Thursday, declining to say whether Mahindra Electrified is already in discussions with local companies. “The Chinese market is an attractive market as it has all range of electrified cars, including two-wheelers, three-wheelers, cars and buses.”
Indian automakers have lagged behind their counterparts in the U.S., Europe and Japan in cracking the Chinese market, even as Chinese carmakers are venturing abroad into emerging markets. Mahindra’s South Korean unit, Ssangyong Motor Co., has said it will look to markets such as China to make up for an expected decline in shipments to the U.K. following the Brexit referendum. Rival Tata Motors Ltd.’s luxury Jaguar Land Rover unit produces the Evoque SUV in China through its joint venture with Chery Automobile.
Mahindra’s shares rose as much as one percent to 1,387 rupees in Mumbai trading on Monday. The shares have risen 8.7 percent this year.
Stiff Competition
A successful joint venture in China will pit Mahindra against stiff competition from more than two hundred Chinese companies, some backed by the likes of billionaires Terry Gou, Ma Huateng, Jack Ma and Jia Yueting, all capitalizing on the surge in request on the back of generous government incentives. The Indian conglomerate led by Chairman Anand Mahindra has interests spanning airplanes, yachts, hotels and residential homes and last year bought Turin-based Ferrari designer Pininfarina SpA to stir beyond its roots in tractors.
China has identified the new-energy vehicles, which it defines as plug-in hybrids, all-electric and fuel-cell vehicles, as a strategic industry to promote its objective of energy security and pollution control. The government has targeted for five million EVs to ply its roads by two thousand twenty and poured in billions in consumer subsidies, research and development grants, and construction of charging infrastructure.
For Mahindra, manufacturing in China is a necessary step because imported automobiles are subject to a twenty five percent duty and don’t qualify for government subsidies, making them less attractive against locally produced vehicles. That’s especially for mass-market models such as those sold by Mahindra, which contest on price. China requires foreign automakers set up joint ventures with local playmates to manufacture vehicles.
Very Competitive
“China is not only a fast-growing electrified market but also very competitive with strong local electric-car companies,” said Kavan Mukhtyar, a management consultant at PricewaterhouseCoopers in Mumbai who’s advised auto industry executives. “For Mahindra, what matters most is learning from the Chinese market. Eventually, Chinese electric-car companies will come in the Indian market.”
Mahindra Electrified began selling the e2o in the U.K. in April. The three-door hatchback, conceived as an electrical city car, starts from 12,995 pounds ($16,100). The company introduced its very first electrified sedan, the eVerito, in June with a embarking price of 950,000 rupees ($14,200) in Fresh Delhi.
In India, electrified cars will build up popularity as air quality worsens, Mathew said. The government should consider following other countries in suggesting incentives for battery production and address a lack of charging infrastructure, he said.