Here on Tech Today we love covering innovation, especially when auto and tech collide. We have a special guest, Vijay Nakra from Mahindra Auto. What a pleasure to have you on the show today, sir.
To answer that, I need to dial back 20 years. Mahindra has disrupted the SUV category with products like Bolero, Scorpio, and XUV500. Our philosophy is to democratize technology, bringing innovation and design to customers. Scorpio was the first to bring CRDI technology, XUV500 introduced a 6-inch touchscreen. Over the last five years, products like Thar, 3XO, 7OO, Scorpio N, and Thar Roxx have helped democratize technology in the automotive industry. The automobile industry has a great opportunity to revolutionize at the cusp of tech and auto, and Mahindra has played a significant role.
It's interesting that you dial back a couple of decades. You've been at the forefront of innovation for nearly 25-30 years. With synergies with Tech Mahindra, you've had a bird's eye view. But the reason I asked about tech focus is because of the Elon Musk effect and the worlds of tech and auto intersecting. Do you think the worlds have intersected to the point where auto is now a tech product on four wheels?
To a large extent, the automotive industry has evolved in that direction. But besides tech, the auto industry offers the thrill and experience of driving. Technology today is an extension of who you are, and SUVs are lifestyle products. The culmination of technology and driving pleasure is one of the recipes for our success in the last four years.
You mentioned lifestyle, Vijay. When you look at SUVs, they weren't always popular in India. Can we attribute this to pop culture and aspirational value? SUVs are dominating the market, capturing our imagination. Why is everyone so fascinated with SUVs in India all of a sudden?
Interestingly, as of August, SUVs are 67% of passenger vehicles in India, compared to 50-55% globally. It's been a hockey stick growth. The large attributor is that many launches have brought SUVs to the market. The driving experience, seating posture, visibility, safety, thrill, and design—all these have come together. Also, the definition of SUV has changed; there's a thin line between cars and SUVs. The emotional appeal has exploded the category.
That was my next question. We talk about sales numbers, but in the traditional sense, what an SUV is—many automakers call subcompact vehicles SUVs, but for the traditional enthusiast, they aren't. Through Mahindra's lineup, the Scorpio N, Bolero, Thar seem like true SUVs. Is there pressure to conform to this stereotype?
Ultimately, it's about customer preference. While some may define products in a particular way, it's what the consumer sees. Mahindra has successful monocoque SUVs like XUV500, 3OO, 7OO, 3XO. We don't get categorized by classical definitions. We create a distinction with higher standing vehicles, bigger tires, greater ground clearance, commanding seating, and indigenously developed global-best powertrains. We combine all these characteristics to create a portfolio distinct from competitors.
We touched on definition and iconic products. Now, around the world, there's a trend towards electrification. There was a big push with policy announcements, Fame subsidies, but globally EV sales have slowed. Do you think India is an outlier? People are still buying EVs, but penetration is low. Do you see this sector genuinely growing in the next few years, Vijay?
The EV industry in India started in 2018 with the prime minister's vision. Fame and PLI followed, so it's only been 5 years. Current offerings are largely ICE conversions. True born-electric vehicles are yet to come. Mahindra will be among the first to launch a range of electric-origin SUVs. Customers today pay a 20-25% delta for an electric powertrain. With born-electric vehicles, we will address range anxiety, fast charging, and safety. Policy support, like the recent 2,000 crore for public charging infrastructure, will help. I think we are at the cusp for the EV industry to take off.
It's interesting you mentioned that auto manufacturers have a role. Apart from fast charging and range anxiety, some luxury automakers are talking about addressing pricing and resale value with assured buybacks. Is this something we will see more at Mahindra and across the ecosystem?
The category needs great products, innovation, and right pricing. Resale value will be addressed as demand grows. As for battery as a service, it's early days. The Indian consumer is very sensitive towards asset ownership. We saw subscription models didn't take off; the psyche is to own assets, like houses and cars. So BaaS may not be a mass solution yet.
