Despite challenges like the reduction of government subsidies and the higher upfront costs of EV, Suman Mishra remains optimistic about EV adoption in India
28 Nov 2024 | 5398 Views | By Prerna Lidhoo
Mahindra Last Mile Mobility has surpassed 2 lakh vehicle sales and its MD and CEO Suman Mishra, sees this as only the beginning of a long transformative journey ahead. "We’re targeting the next 2 lakh sales to happen in the next two years powered by the growing demand for value-driven ...
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Mahindra Last Mile Mobility has surpassed 2 lakh vehicle sales and its MD and CEO Suman Mishra, sees this as only the beginning of a long transformative journey ahead. "We’re targeting the next 2 lakh sales to happen in the next two years powered by the growing demand for value-driven electric vehicles, especially in the three-wheeler and small commercial vehicle (CV) segments,” she said.
Mishra highlighted that electric three-wheelers have a clear edge in total cost of ownership, allowing customers to save approximately Rs 30,000 per month. This financial incentive has made EVs particularly attractive in smaller towns, which are spearheading the adoption wave. "Ease of charging and strong government incentives on both the demand and supply sides have also played a crucial role," she explained.
However, Mishra acknowledged the challenges in EV financing, with interest rates as high as 22% internal rate of return (IRR). "The real breakthrough will come when large banks step in," she stated, adding that priority sector lending for EVs could ease the burden on customers.
Looking ahead, Mahindra LMM is working on plans to electrify the four-wheeler small CV space while also establishing a presence in export markets. "Our strategy is to localize operations in select markets to drive global adoption," Mishra revealed. Domestically, she anticipates 50% electrification in the last-mile mobility segment within the next 4-5 years.
Despite challenges like the gradual reduction of government subsidies and the higher upfront costs of EV technology, Mishra remains optimistic. "Indian customers are evolving quickly, and they demand better ownership value. Our focus is on delivering cost-effective, reliable EV solutions to meet these needs," she said.
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