Can M M’s new electric vehicles help it overcome industry hurdles?

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Subscribe to enjoy similar stories. Mahindra & Mahindra Ltd (M&M) has widened its electric vehicle (EV) portfolio with the launch of two new models – BE 6e and XEV 9e. Its first EV, the XUV 400, is still struggling almost two years after its launch in January 2023, with sales of about 1,000 units a month.

The new models have bigger batteries, more powerful electric motors and better features than the XUV 400, and are priced attractively compared to rivals’ offerings. Here's the hard part, though. The Indian EV industry has two main problems: poor battery charging infrastructure and weak visibility on resale value.

Rapidly changing technology and frequent updates to models make it hard to get a reasonable resale price for older models. JSW MG Motor India has tried to address this problem by assuring 60% buyback value after three years or 45,000 km. Still, the company’s sales volume of about 3,000 units in October is nothing to write home about.

Also read: LTIMindtree readies recipe for $10 bn revenue, but near-term woes a spoilsport Tata Motors Ltd, the leader in electric passenger cars in India, demonstrates the struggles of EV makers. Its wholesale EV sales in the September quarter fell 16% year-on-year and 6% quarter-on-quarter. Though October retail sales were better, it is too early to predict a significant revival in electric car demand.

M&M’s stock had a muted reaction to the new launches, suggesting investors weren’t enthused. The two new models will have a combined annual manufacturing capacity of 90,000 vehicles, or about 10% of M&M’s estimated sales of 900,000 units in FY25. However, since EV offtake remains slow, it may be a while before the full capacity for the new models is utilised.