Mahindra eyes UK electric vehicle exports as India strikes trade pact
Mahindra & Mahindra will begin exporting electric vehicles to the UK, leveraging the India-U.K. free trade agreement as it bets on India’s rise as a global auto manufacturing hub.
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Mahindra & Mahindra plans to begin exporting its electric vehicles to Britain, a move executives say will be aided by the newly concluded India-U.K. free trade agreement. Anish Shah, the company’s group chief executive and managing director, said the accord would help Mahindra expand its footprint in Britain’s competitive auto market, while also opening the door for broader industry gains.
“We are looking forward to exporting our electric vehicles to the U.K. and to take a bigger share of the U.K. market and competing in the U.K. on the back of this FTA,” Shah said in an interview with PTI.
Mahindra, based in Mumbai, is a dominant player in India’s fast-growing electric vehicle segment, with a target for EVs to make up 30 percent of its sales by 2030. In 2022, it opened Mahindra Advanced Design Europe in Banbury, Oxfordshire, a creative hub for its electric portfolio.
Shah credited the Indian government with “a fine job” in negotiating the trade deal, calling it “balanced” and noting that it would “help open up our market in a way to goods coming in from the U.K.,” while also enabling “a lot more” exports across industries.
The pact, he said, could spur innovation and manufacturing, potentially positioning India as “the auto manufacturing hub of the world.” Lower logistics costs, streamlined business regulations and reduced import duties in some areas, he added, have already improved India’s ability to produce “very high quality cars.”
That vision, Shah stressed, is not limited to domestic firms. “We want the best global automakers to be in India and produce in India. It will spur businesses. It will be better… more competition makes us better over time,” he said.
Competition, in fact, is something Mahindra welcomes, Shah insisted. Asked about the arrival of Tesla and Vietnam’s VinFast in India, he replied: “We are actually excited about it… if you look back at the last 25 years, we had this question come up numerous times.”
When Ford entered India, and later Hyundai and Kia, doubts surfaced about Mahindra’s survival, he recalled. “And we’ve not just survived. We’ve gotten better as we’ve had competition that came in, and today we are actually standing at a much stronger position.”
The company, he said, boasts strong R&D capabilities, producing higher-quality vehicles at lower cost than many global rivals. Its SUV market share has climbed from 11 percent to 27 percent, with a 5.7 percentage point gain in the last quarter alone.
Mahindra’s focus, Shah said, is on “developing the best products” and executing well, both domestically and abroad. “We will focus on certain markets, first get to a strong market share, then focus on the next set of markets.”
That expansion will lean on the company’s strength in SUVs. “We chose to be in SUVs because we had strength in that area,” Shah said, noting the company’s shift toward more refined designs and advanced technology. “As we go forward… we may look at slightly smaller SUVs to start with.”
On acquisitions, he contrasted Mahindra’s approach with Tata Motors’ global buying spree, saying the company prefers deals that “take our business to a different level and put it on a much better path for growth,” citing a recent stake in SML.
Supply chain risks remain, including the global shortage of rare earth magnets. But Shah struck an optimistic note. “There are potential alternatives as well,” he said. “We had semiconductors, and going through that has made us stronger… I believe the government is also doing a lot to look at alternatives.”
