As business relations between India and China show signs of improvement, Indian automotive giant Mahindra & Mahindra has declared that domestic car manufacturers are prepared to compete with Chinese brands, but only under conditions that ensure fair competition and adherence to localization requirements.
Call for Equal Competition Terms
Mahindra's Executive Director for Auto and Farm Sectors, Rajesh Jejurikar, emphasized that while Indian companies welcome competition, there must be a level playing field for all participants. "As an Indian company, we welcome anyone to come and compete. But come and compete on equal terms. There should be a level-playing field and localisation norms should be adhered to," Jejurikar stated clearly.
This statement comes at a time when Chinese electric vehicle manufacturers face significant hurdles in establishing manufacturing operations within India. BYD, the Chinese EV behemoth, has operated in the Indian market for several years but continues to await approval for its investment proposal to establish a local factory.
Chinese EV Challenges in Indian Market
The situation for Chinese automakers in India remains complicated. Another prominent Chinese manufacturer, Great Wall Motors, was forced to abandon its India entry plans despite advanced discussions about setting up a production facility. This rejection occurred during peak India-China tensions stemming from border disputes.
Industry analysts note that Indian domestic players and non-Chinese multinational corporations currently enjoy a competitive advantage due to government policies that restrict substantial Chinese competition in the automotive sector. However, authorities are increasingly acknowledging the industry's dependence on Chinese supply chains, particularly for critical components like rare earth magnets, batteries, and motors.
While the government maintains a firm stance against full-product manufacturers from China, it appears to be softening its position regarding supplier ecosystems that provide essential components to the automotive industry.
Mahindra's Electric Vehicle Ambitions
Mahindra has been making substantial investments in electric vehicles, recently introducing a seven-seater version of its XUV9E SUV. The new three-row model, designated XUV9S, features an entry price of Rs 20 lakh for the 59 kWh battery pack and Rs 22 lakh for the 79 kWh version (both ex-showroom prices).
The company is implementing an aggressive expansion strategy for its electric vehicle production capacity. Current monthly production of 4,000-4,500 units is planned to increase to over 7,000 units by March 2026, representing significant growth in manufacturing capability.
Jejurikar revealed that Mahindra has been systematically building its customer base across key markets and is now focusing on densifying its charging network by collaborating with ecosystem partners. Electric vehicles currently constitute approximately 9% of Mahindra's total passenger vehicle sales, with projections indicating this will rise to 20-25% by 2027-28.
Regarding sales strategy, Mahindra currently retails EVs through its existing internal combustion engine (ICE) dealerships, while simultaneously testing EV-exclusive showrooms at selected locations. "We believe that EVs are still at an evolution stage where customers will want to evaluate both ICE and electrics. So, we broadly retail them from the same location for now," Jejurikar explained.
Despite the strong push toward electric mobility, the company emphasized it has "no intention" of reducing focus on its ICE business. "We will not reduce the play in the ICE business. We want the customers to make a choice. We will not throttle from our side by pushing just EVs or ICE," Jejurikar affirmed.
The absence of highly aggressive Chinese manufacturers, known for disrupting global auto markets with exceptionally affordable pricing, is gradually becoming a significant advantage for Mahindra and other EV makers like Tata Motors, Hyundai, and the newly entering Maruti Suzuki, even though most continue to source numerous components from China.
