|Electric cars about to be profitable, says India's Mahindra |
8 Comments Sep 27, 2017
Mahindra e2o Plus
The market for electric cars continues to grow, but vehicles powered by fossil fuels remain dominant across the globe.
Many analysts believe electric cars will reach price parity with vehicles powered by internal-combustion engines sometime within the next decade.
Indian maker Mahindra, however, says its own small, limited-range electric cars are already on the brink of profitability today—and it plans to fully embrace battery-electric cars moving forward.
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As the business case for electric cars becomes clearer, Mahindra says government subsidies will not be necessary in the future.
In fact, the Indian automaker says the coming electric-car revolution will be the industry's largest business opportunity in years, according to Bloomberg.
"We’ve just been believers for a while, haven’t been making any money," Chairman Anand Mahindra said, "but now the tipping point seems to be reached."
Mahindra e2o Plus
"This is the single biggest business opportunity for the next couple of decades," Mahindra added. "Anyone not looking at these opportunities is going to miss out on growth."
While subsidies clearly sway consumers toward purchase of an electric car, Mahindra suggests the Indian government must do one thing above all others for automakers: provide clear direction for the automotive industry.
Uncertainty never bodes well for business, but the Indian government's recent commitment to an all-electric new-car pledge sent a clear signal to automakers in the country.
READ THIS: India's new four-door Mahindra Reva e2o electric car to be exported
In fact, India actually beat China to a pledge to end the sale of new cars powered by fossil fuels.
The country plans to implement the ban by 2030, while China is now developing its timetable; both countries are booming markets for automakers.
With clear direction, Mahindra plans to move full speed ahead with the e20 electric car sold by the former Reva company, which Mahindra bought in May 2010..
Smog in Dehli, India (by Flickr user Mfield)
The 4-door electric car features a 19-kilowatt (25-horsepower) electric motor and boasts 68 or 86 miles of range depending on the model.
Mahindra also seeks to export the electric car, although not to the United States—China's secondary cities may be a ripe market, per the Indian automaker.
CHECK OUT: China developing timetable to end sales, production of gasoline cars
This month, Mahindra announced a partnership with Ford to cooperate on future electrification and self-driving car technology.
The company thinks continued cooperation will help speed up the deployment of electrified cars; with India's signing of the Paris climate agreement, the country must work quickly to create a friendly environment for zero-emission vehicles.