Tata Motors, Mahindra betting big on electric SUVs to take on rivals like Tesla

Tata Motors and Mahindra & Mahindra (M&M), two of India’s largest car manufacturers, are gearing up for a series of electric SUVs (sport-utility vehicles) across many price segments in the coming quarters, in order to tap the common SUV theme as they prepare to take on competition from foreign competitors, like Tesla, which are expected to hit Indian roads soon.

Both Tata Motors and Mahindra plan to launch popular SUV models in brand new electric avatars. Moneycontrol had reported on November 22 that Tesla’s first model to launch in India will be the Model Y Crossover, which is a midsize crossover SUV.

SUVs are the fastest-growing segment in India, driven by factors like increased disposable incomes, spaciousness, and perceived safety.

Tata Motors line-up

Tata Motors, currently the largest EV player by market share, will launch several new cars in the next 12-18 months, beginning with Punch EV, which will be the cheapest battery-powered SUV in the country. It is priced around Rs 9.5 lakh and will be launched by February 2024, sources told Moneycontrol.

Furthermore, sources said that while Tata’s Harrier EV will be launched by June 2024 and will be priced at Rs 22 lakh, its Curvv Coupe EV will be available by December 2024 and will be sold for Rs 22 lakh.

Sierra EV will be the most expensive model. It will be available for Rs 25 lakh in November 2025. Tata Motors confirmed the rollout plan.

“We have indicated the following regarding the timelines on our new vehicle and nameplate launch —  Punch EV, Harrier EV, Curvv in 2024, and Sierra EV in 2025,” a spokesperson told Moneycontrol.

“While we are the only manufacturer to have an EV sedan in the mainstream market, customer preferences are clearly towards SUVs,” Vivek Srivatsa, Head, Marketing, Sales, and Service Strategy, Tata Passenger Electric Mobility Limited (TPEML), recently told Moneycontrol.

What are M&M’s plans?

M&M, which had unveiled its Born Electric range of battery-powered passenger vehicles (PVs) in the United Kingdom, is also betting big on e-SUVs.

The company, which has focused only on the pure SUV segment in recent years, is looking to launch electric versions of its hugely successful XUV range in the near term — in the Rs 15-40 lakh range.

It has already introduced the XUV400 to take on Tata Nexon EV. It will commence production of XUV.e8 (around Rs 35 lakh) in December 2024, followed by XUV.e9 (around Rs 40 lakh)  in April 2025. It will also be coming up with the production versions of concept models BE.05 and BE in October 2025 and BE.07 in October 2026.

Without sharing the price points, an M&M spokesperson confirmed the timelines of the aforementioned BEV (battery electric vehicle) rollouts.

“As an organisation, we are focused on building authentic SUVs, leveraging our strengths. As in the ICE portfolio, we plan to leverage our core competency as SUV makers in the EV portfolio as well,” an M&M spokesperson said in an e-mailed reply. With this, M&M plans to convert 20-30 percent of its portfolio to electric by 2027, the spokesperson said.

Share of electric SUVs rises

According to JATO Dynamics India, an automotive data intelligence firm, electric SUVs accounted for 1.3 percent of the overall electric passenger vehicles in CY2018. This share has risen to 40.8 percent in CY2023, year-to-date (YTD).

Industry observers reckon that this is expected to move upwards, with multiple products from this segment expected to hit the market. SUVs are the fastest-growing segment in India, driven by factors like increased disposable incomes, spaciousness, and perceived safety. Electric vehicles in this segment cater to both “existing SUV enthusiasts” and  “environmentally conscious buyers”.

“E-SUVs command premium pricing, compared to their ICE counterparts, leading to potentially higher margins for manufacturers,” said Ravi Bhatia, president and director, JATO Dynamics India.

“So, investing in e-SUVs showcases a company’s commitment to sustainability and technological advancement, boosting its brand image and attracting tech-savvy customers,” he said.