Mahindra CEO Advocates For All-Electric Focus Over ‘Short-Term’ Hybrids

Benefiting from favorable incentives, India's electric vehicle ecosystem is set for rapid development, according to Anish Shah, Managing Director and CEO of Mahindra Group. Shah emphasized that the focus should be on pure electric vehicles rather than hybrid models, which he deemed a short-term solution.

“Hybrids, introduced in 2000 in many countries for Corporate Average Fuel Efficiency (CAFE) norms, lack incentives, and their dual powertrain setup (electric and combustion engine) is inefficient,” he said during an interview at the World Economic Forum 2024 in Davos. He argued that investing in a robust EV infrastructure requires a commitment to an all-electric approach, as opposed to a mix of hybrids and EVs. Shah highlighted Mahindra and Mahindra's strategic decision to concentrate solely on EVs two years ago.

Future Revolves Around EV

According to Shah, hybrids offer only a marginal 10 per cent improvement in fuel efficiency without a significant reduction in emissions. He stressed that the future must revolve around electric vehicles for a more efficient and sustainable outcome.

Addressing Mahindra's role in India's EV ecosystem, Shah mentioned the development of five new SUVs, anticipating a transformative impact on the market. He emphasized the importance of achieving a balance between vehicle production and infrastructure development. He outlined Mahindra's targets, aiming for 30 per cent of their production to be EVs by fiscal year 2027 and envisioning the production of one million EVs for India and global markets by fiscal year 2030.

India's Distant Driverless Prospects

Regarding safety concerns and the need for charging infrastructure, Shah assured a focus on ensuring battery safety in Mahindra's vehicles. He acknowledged the necessity for responsible practices in the EV industry, emphasizing the importance of avoiding setbacks in progress.

On the future of driverless cars in India, Shah said, “It's Way off in the distance. I would say that India is definitely not going to be at the forefront of that. India might not be at the forefront of adopting this technology. We need to observe global developments and assess the technology's reliability before considering its implementation in the Indian context."