Gollagunta highlighted that the market is maturing beyond its initial environmentally conscious buyer base to a broader base.
11 Nov 2025 | 1450 Views | By Shristi Ohri, Yukta Mugdal
Electric SUVs are poised to become the dominant force in India's EV market, with customer profiles evolving from environmentally conscious early adopters to mainstream buyers attracted by features and efficiency gains, according to Nalinikanth Gollagunta, CEO of the Automotive Division at Mahindra & Mahindra.
Speaking at the India EV ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Electric SUVs are poised to become the dominant force in India's EV market, with customer profiles evolving from environmentally conscious early adopters to mainstream buyers attracted by features and efficiency gains, according to Nalinikanth Gollagunta, CEO of the Automotive Division at Mahindra & Mahindra.
Speaking at the India EV Conclave 2025, Gollagunta outlined Mahindra's bullish stance on the electric SUV segment, pointing to a three-fold increase in electric SUV sales as evidence of growing market acceptance.
Beyond Early Adopters
Gollagunta highlighted a significant shift in the EV customer profile, indicating that the market is maturing beyond its initial environmentally conscious buyer base. "Most early customers were environmentally conscious. The second set of customers are buying vehicles because of features and efficiency gains. Across the board, a broader set of customers are buying born EVs," he stated.
This evolution suggests that electric vehicles are increasingly being evaluated on their intrinsic merits—performance, technology, and cost efficiency—rather than solely as environmental choices, marking a critical transition toward mainstream adoption.
Mahindra's recently launched electric SUVs, the BE 6 and XEV 9e, secured over 30,000 bookings on their first day, with a total booking value of Rs 8,472 crore, demonstrating strong demand for premium electric SUVs in India.
GST Impact Manageable
Addressing concerns about GST's impact on EV pricing competitiveness, Gollagunta acknowledged that while GST increases the gap between ICE and EV prices, this won't pose a significant challenge to EV adoption. "The gap does increase with GST, but EV buying will not be challenging," he stated, emphasizing that consumers are purchasing electric vehicles because they genuinely prefer them.
"GST increases the gap between ICE and EV, but that's not a concern because people buy the vehicle because they love the vehicle," Gollagunta added, suggesting that product appeal and value proposition have become more important than pure price comparison.
Gollagunta directly addressed one of the industry's persistent concerns—EV profitability—projecting that margin issues will be resolved through two key factors: higher localization and declining battery cell prices.
"EV margin issue will get solved with higher localisation and as cell price decline further," he stated, outlining Mahindra's path toward sustainable EV profitability.
He emphasized Advanced Cell Chemistry (ACC) localization as a critical missing piece in India's EV ecosystem. "One critical aspect is ACC localisation has not played out well. It'll be a huge gamechanger for us if this happens," Gollagunta said, indicating that domestic battery production could significantly reduce costs and improve margins.
India's EV battery market is projected to expand from approximately $2.22 billion in 2024 to $13.89 billion by 2033, suggesting substantial opportunities for localization efforts.
Longer Ownership Periods for EVs
Gollagunta highlighted a unique advantage of electric vehicles over traditional ICE vehicles: reduced mechanical aging. Drawing a parallel to consumer electronics, he stated, "If your phone gets old, you get software updates. The mechanics of EVs don't age as quickly as ICE vehicles, so ownership periods also increase as vehicles can be updated over the air."
This observation suggests that EVs may fundamentally alter ownership patterns in the automotive industry, with vehicles maintaining relevance and functionality longer through software updates rather than requiring complete replacement due to mechanical wear.
The longer ownership periods could have significant implications for the automotive business model, potentially reducing replacement cycles while increasing the importance of software and service revenues.
Mahindra & Mahindra sold over 528,000 SUVs in 2024, marking 22% year-on-year growth and crossing the half-million milestone for the first time. While the company's current electric SUV sales remain modest, the strong booking response to its new electric models indicates substantial future potential.
Gollagunta's emphasis on e-SUVs as "clear winners" aligns with broader market trends showing SUVs dominating India's passenger vehicle segment. The combination of SUV appeal with electric powertrains positions Mahindra to capitalize on both these trends simultaneously.
The company's focus on born-electric platforms rather than converted ICE vehicles signals a commitment to purpose-built EVs that can deliver superior performance and efficiency, potentially addressing earlier concerns about EVs being compromise vehicles.
Gollagunta's confident projections about margin improvements and market acceptance suggest Mahindra views the current investment phase as temporary, with profitability and scale achievable within a defined timeframe as localization increases and the customer base broadens.
The India EV Conclave 2025 was presented by Chargezone, with Rosmerta Technologies as the Platinum Partner. The event is powered by IPG Automotive and Gulf Oil Lubricants India, with PTC serving as the Technology Partner. Associate Partners include Spark Minda, Radici Group, and Delta Electronics. The conclave also has trade partnerships with FADA, ASDC, and ICAT.