With India’s power minister having recently announced that by 2030 “not a single petrol or diesel car should be sold in the country,” Anand Mahindra, Chairman of industrial giant Mahindra Group, discussed on CNBC this week his company’s commitment to electric vehicles. Given the huge market opportunity even if the minister’s extraordinarily aggressive goal is not fully achieved, Mahindra and Tesla’s Elon Musk exchanged tweets on prospects for electric vehicles in the potentially huge market:
India commits to sell only electric cars by 2030. It is already the largest market for solar power. https://t.co/EGBNTPzmE5
— Elon Musk (@elonmusk) June 1, 2017
Time you got out here Elon. You don't want to leave that whole market to Mahindra do you?? The more the merrier–and greener..! https://t.co/IPoA9viDRN
— anand mahindra (@anandmahindra) June 2, 2017
Mahindra says he is not worried about Tesla, and that “[Tesla] coming into India would actually increase the awareness of electric vehicles [and] increase the size of the pie.” On the question of whether the company will expand its fully-electric portfolio beyond the e2oPlus subcompact, eVerito compact, and eSupro van, Mahindra said that he plans to build fully-electric vehicles and is “not going to take the halfway measure” with hybrids.
Mahindra is already producing vehicles at the entry-level of the market, and it has the resources to cover all segments, but whether it will go head-to-head with Tesla remains undecided for now. If Mahindra does take on the luxury EV market, the company is expected to turn to Pininfarina, the legendary Italian designer of iconic vehicles such as Alfa Romeo, Ferrari, and Maserati, which Mahindra acquired in late 2015.
Transitioning to clean transportation is a high priority for India. According to a report by NITI Aayog, India’s most influential government think tank, switching from internal combustion engines to electric vehicles would save the country $60 billion in energy and decrease carbon emissions by 37%. Reducing emissions is a particularly important issue because, according to a 2014 World Health Organization study, 13 out of 20 of the world’s most polluted cities are in India, and tailpipe emissions are dirtier per unit of energy produced than power plant emissions. That said, there is an emphasis in India to avoid the already-strained electrical grid altogether and charge EVs with solar panels. Each EV produced by Mahindra gets its first charge at the factory from solar panels, and customers can purchase their own solar panels for off-grid charging at home.
In light of the country’s efforts to move away from traditional vehicles, Mahindra Electric recently announced its roadmap for the next generation of electric vehicles, an initiative dubbed “EV 2.0.” Speaking on the subject of the roadmap, Dr. Pawan Goenka, Chairman of Mahindra Electric, said, “The time has now arrived for EVs to become mainstream and Mahindra has the right technology and products for India. We will actively engage with the government . . . and other private players for setting up a robust EV ecosystem. We are also ramping up our investments towards developing the next generation of EV technologies and products that will cater to the smart cities of tomorrow.”