Mahindra Auto Hopes Trade Talks Can Open New Markets

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00:00How's business great so far we've had a great f-25 a bit of 20% growth in our SUV portfolio

00:05and coming against a backdrop what the industry is low single digit growth I think it's been a

00:10great year for us and came across from five major launches that we've did across the CV

00:16and the passenger portfolio as well for us and going into f-26 we're projecting another mid to

00:21high teens growth for the SUV portfolio again. Industries again looking at mid single digits

00:27growth at this point in time so so far so good. The metric there is is that top line or number

00:32of this is volumes I'm talking about from a okay from a volume perspective okay revenue wise we are

00:37the number two player from a passenger vehicles perspective we also launched two bond electric

00:42vehicles in the third quarter and fourth was the first full quarter for us and in the EV SUV portfolio

00:49we're already number one player from a revenue perspective as well if you talk revenue market share

00:53all right uh big listing here of course as you mentioned yeah I mean it was almost draped all

00:58the way as you make your way here at CATL but you do business of course with BYD that's right on blade

01:03batteries yeah cells primarily on cells primarily how's the how's the partnership it's been a great

01:07partnership for us okay and they're a strategic partner and we're delighted to work with the

01:12partners of world leaders in the sales space yep and so it really helps having that kind of scale

01:18and that kind of expertise which we bring to the Indian customers consumers the the fact that they

01:24could be a competitor on other let's call it other components and other category yeah do you suspect

01:31that's going to be an issue for you or are you happy with that partnership as things that in that

01:35specific area yeah no um again we are all mature partners in an ecosystem it's a strong ecosystem

01:41play yeah and we are one of the largest producer of SUVs in India so the volume will bring in the

01:47credibility from steady growth that we've had over the last three years and the fact that our

01:52manufacturing capacity has scaled up by 3x in the last five years really helps bring a lot of

01:57credibility to the equation and they've been a great partner what's the approach I'm curious of the

02:02company or the business to investing in your own battery technology like where do you see the long-term

02:07trends there yeah so uh primarily we're looking at getting best best of breed technology into the

02:12country okay we pick up cells from outside right the assembly of the packs itself are done within our

02:17factory and over a period of time localization is on the agenda but it's a very fluid situation with

02:24the technology at this point in time so we'd rather be agile and get the best of breed and work with the

02:28best partners now I need to ask you about the the tariff conversation yeah what's the hope no well we hope

02:37that we get access across other markets as well we are producing world-leading products at this point

02:42in time so while it'll provide a level playing field for others to come into India and we're very open to

02:48that we hope that it opens up for us opportunities in other markets right the UK FTA as a case in point

02:55for us we are primarily right-hand drive vehicles at this point in time yeah and so you could be a great

03:01opportunity for us when the FDA plays out the is that a like-for-like change though it's like if if

03:07tariffs on US vehicles come down to say much lower than the current levels would other markets opening

03:13up be a good trade-off for you I think to the point you're making that is that a like-for-like as far as

03:18the numbers are concerned yeah so I'd rather put it this way the product proposition is what wins at

03:25the end of the day okay and we believe the portfolio we have especially with the newborn electric vehicles

03:29we put out there right the very strong proposition that we can take outside and compete against the

03:33best of the world talk to us about those markets you have the UK what other markets you have yeah

03:37primarily we're looking at RHD markets the right hand drive markets whether it's UK Australia is

03:42another focus market for us South Africa we've been there for quite some time so these are markets

03:47and eventually we'll have a calibrated approach to get to LHD markets right majorly emerging markets at

03:52this point are there certain models or categories that you think will do well as far as your portfolio is

03:57concerning those markets yeah so we are SUV only at this point in time and even within that the

04:02bond electric portfolio is what we believe positions is extremely well out there what

04:06milestones are you looking forward to this year for your domestic market yeah so firstly we focused

04:10on growth volume growth and revenue growth and getting the EV penetration up while the industry is at

04:16about two point seven percent last year we've had a good start this year April was at four percent

04:21penetration thanks to mostly our vehicles being put out in the market right we already had about

04:25eight percent penetration within our portfolio wow okay that's four four X the industry yeah

04:30absolutely and so we are trying to drive that forward at this point in time and so far great

04:35traction and customer reception what would be and I'm looking at the Chinese example over the last

04:4010 years I mean who would have imagined they have this concentration at the we're looking at right now

04:43yeah plus 50 percent what do you suspect would be the financial implications good or bad in terms of in

04:49terms of moving into such a high concentration rate of EVs for example is it a margin is that a supply chain

04:54impact just help us understand the long-term thinking there that's that's quite a major shift

04:59yeah no I think I'd rather see it as a strategic imperative we anyway have to do as an industry

05:04right if we don't do it in India with our own products somebody is going to come do it for us in

05:08the country at this one in time so strategically it's it's a no-brainer we're to make it happen the

05:13scale and pace at which the penetration happens we'll have to watch for it we do believe by 2030 it's

05:18still going to be a 70 percent ice market from what our predictions look like about 30 percent EV

05:24penetration so we focus on making sure that we have launches lined up for the next five years in

05:28both categories about seven launches on the ice side five launches on the best side so we'll balance

05:33both of it to that extent and see how the market plays out

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