India's sole electric car-maker Mahindra believes that investing in clean technology is going to give massive gains in upcoming years. Chairman of Mahindra Group, Anand Mahindra sees the upcoming electric boom as one of the biggest business opportunity and says that its slowly but steadily making sense and won't even require government subsidies as the technology itself has the potential to make a big difference to automotive business. Mahindra & Mahindra announced a joint-venture with Ford Motor Company to collaborate to develop electric cars, connected technology etc says there's money to be made in electric vehicle sector as some carmakers warn on declining profitability. Speaking at the Bloomberg Global Business Forum in New York, Anand Mahindra said, “We’ve just been believers for a while, haven’t been making any money, but now the tipping point seems to be reached.” Globally, the demand for electric cars has been slow as the cars and technology remains more expensive than the traditional petrol or diesel run vehicles. Bloomberg New Energy Finance has projected that about 30% of the global auto fleet will be completely battery powered or hybrids. Every automaker is currently investing in electric vehicles. Companies like Volvo Car have officially said that all its new cars will have a pure electric variant by 2019. Tesla has been pioneering electric cars globally and is now looking to venture in to emerging markets.
“This is not a trade-off. This is the single biggest business opportunity for the next couple of decades,” Anand Mahindra said of sustainable businesses. “Anyone not looking at these opportunities is going to miss out on growth.” Green business choices have started to yield some gains for companies and government subsidies are no longer required to justify the investments into sustainable areas believes Mr.Mahindra. But, Government has to communicate the country’s direction, similar to what PM Modi did by announcing commitment to solar power, he added.
“Businesses look for stability, they look for direction. You don’t need that much more if you’re just smelling opportunity,” Mahindra said. “We’re not looking for subsidies, we were just saying, ‘Tell us that’s the track you’re going to follow.’ If you’re going to do that, there’s money to be made, there’s going to be a return.”
Mahindra currently have three vehicles in its electric product portfolio and is looking for a joint venture partner for Chinese market. Early adopters to manufacture EVs will reap rewards. “From my competitive juices point of view, we’re delighted if someone’s not going to look at these opportunities,” he said. “There’ll be more there for us.” Anand Mahindra concluded.