Mahindra & Mahindra reports robust quarterly profits and maintains strong market share in India's evolving EV sector, even as Tesla’s premium Model Y enters the luxury market amid shifting government policies and intensifying competition.

Mahindra & Mahindra reports robust quarterly profits and maintains strong market share in India's evolving EV sector, even as Tesla’s premium Model Y enters the luxury market amid shifting government policies and intensifying competition.

Mahindra & Mahindra (M&M) has once again emphasized its confidence in the fast-evolving Indian electric vehicle (EV) scene, welcoming new players — including Tesla — while vouching for the strength of its own product lineup, even as competition heats up. During a post-earnings analyst call, Group CEO and Managing Director Anish Shah pointed out the “good progress” at home in the EV sector, despite a bit of a slump in urban demand sentiment lately. Shah did recognize the entry of international giants, but he stressed that M&M’s market share in revenue remains sturdy, thanks to its higher-end offerings, which sort of set it apart in this growing, more diverse market.

The Mumbai-based conglomerate posted a consolidated net profit of Rs 4,083 crore for the April-June 2025 quarter, marking a healthy 24% increase compared to last year. This growth was supported by broad-based progress across its auto and farm divisions. Overall income jumped by 22% to Rs 45,529 crore—driven by solid demand especially for SUVs and tractors. Rajesh Jejurikar, who’s the Executive Director and CEO of the Auto and Farm Sector, said that M&M’s EVs “hold up really well” against more recent entrants, implying they have a competitive edge based on decades of experience and continuous upgrades. The company also reassured stakeholders that there won’t be any disruptions in production due to rare earth magnet supply issues, thanks to proactive measures that have secured inventory for the upcoming months.

Tesla’s recent launch in India with its Model Y SUV, priced at Rs 59.89 lakh and introduced through a first “experience centre” in Mumbai’s Bandra-Kurla Complex, signals a cautious but calculated entry into the world’s third-largest auto market. Even though the high price—roughly $70,000, factoring in hefty import duties—Tesla is mainly targeting India’s luxury EV segment. This market, though still fairly small, is expected to grow as wealthier Indian consumers increasingly lean towards electric mobility. Industry folks suggest Tesla’s initial move is mostly about imports, with no immediate plans for setting up local manufacturing. The current tariff regime makes that tough, although recent policy shifts, like the reduction of import tariffs to 15% for manufacturers willing to make local investments within three years, are designed to attract big premium automakers like Tesla.

Analysts say that Tesla’s Model Y, with its premium price tag, isn’t really within the reach of most Indian consumers, whose typical spends are usually well under $20,000. But then again, the government’s ambitious goal to push EV penetration to 30% by 2030 does offer some long-term promise. On that front, sectors like energy and automotive are gearing up for expansion. For example, Maharashtra recently scrapped a proposed 6% sales tax on EVs costing above Rs 35,000—making luxury EVs more attractive and encouraging investments in manufacturing there.

Meanwhile, Mahindra’s mainstay remains focused on rural markets and SUVs. Reuters reports a 34% rise in quarterly profits YoY, hitting ₹34.5 billion, driven by a 22% jump in SUV sales and a 10% boost in tractors and farm equipment sales during the same period. This growth underscores M&M’s knack for balancing urban and rural markets, and its ability to lean into high-margin vehicles, even when overall car sales were only up 2% in fiscal 2025—a bit of a subdued market, really. That’s contrasted with Tesla’s premium-centric approach, which naturally gives M&M an edge in terms of scale and familiarity with Indian consumers.

Industry insiders, including Sajjan Jindal of JSW Group, have voiced some skepticism about Tesla’s chances of shaking things up in India all that much, compared to the stronghold of companies like Tata Motors and Mahindra, which have better local market insights, competitive pricing, and scalable manufacturing capabilities. Even M&M’s own executives have pointed out that the competitive game with Tesla is quite different from earlier market entries; Mahindra’s EVs are said to now rival newcomers in tech and value, making the landscape a bit more complex.

On a broader level, India’s EV ecosystem appears set to change again, especially with policy adjustments. The government’s flagship Production-Linked Incentive (PLI) scheme—credited with helping sectors like electronics and auto parts grow and generate jobs—will be replaced by a new Rs 229 billion Component Manufacturing Scheme. The goal here is to shift from just assembling vehicles to developing the full supply chain for sub-assemblies and key equipment—think of it as moving toward creating more value locally, which could influence future moves from Tesla and homegrown players alike.

All in all, Mahindra & Mahindra seems to be positioning itself strongly to stay ahead in India’s fast-growing EV market, leveraging its product strengths, revenue strategies, and rural footprint, even as global giants like Tesla step in more prominently. Though Tesla’s arrival emphasizes luxury EV potential, the differences in pricing, manufacturing outlook, and market approach suggest a rather complicated and competitive scene. As some industry experts note, domestic companies with deeper local insights and integrated supply networks are actually pretty well placed to maintain leadership, even as India speeds toward greater electrification.

📌 Reference Map:

Source: Noah Wire Services