Mahindra Group CEO’s view on Trump tariffs and the Tesla challenge

India’s lower export volumes compared to other global markets mean it will not be as affected by potential US tariffs, according to Anish Shah, Group CEO and MD of Mahindra Group.

“This is the time for India to really focus on manufacturing and ‘Make in India’. And as we do that, we will have more competitive products and there are many markets around the world where we can send them to,” he said. The government’s push for Free Trade Agreements (FTAs) is a step toward unlocking more global markets for Indian manufacturers.

Shah believes Tesla’s entry into India actually benefits the industry. “We’ve always said, we welcome competition. We’ve gotten better with competition.”

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He highlighted that Mahindra’s electric vehicles (EVs) were benchmarked against global competitors, including Tesla, in an independent review during the company’s launch, with strong results.

However, India must not become a dumping ground for global products.

“If India becomes a dumping ground for the rest of the world, whether it’s in steel or automobiles or anything else, that’s going to be negative for the economy,” he cautioned.

Mahindra currently has a production capacity of 5,000 EVs per month, with plans to scale up to 10,000 as new models are introduced in the next 12 to 18 months.

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While EV margins will be slightly lower initially, they are expected to improve over time. In the long term, EV margins will align with ICE margins as investments mature, he noted.

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The company’s tractor business is expected to grow by 15% in the fourth quarter over last year. While predictions for the next fiscal year depend on seasonal factors, the company remains confident in the continued expansion of the rural economy and the prospects for its tractor business.