Mahindra & Mahindra is undergoing a transformational journey with an aim to redefine the SUV market in India. The automaker has embarked on a project to set benchmarks for defining an SUV using around 30 parameters at a time when the market is crowded with so many SUVs. In addition, the company is strengthening its design capability in automotive, agricultural equipment and two-wheelers globally with an advanced design center in the UK. business Line Rajesh Jejurikar, Executive Director, Mahindra & Mahindra Ltd. spoke to the person leading the change. Part.
M&M has launched a new SUV branding. What is behind this move?
The SUV space is a very competitive space and we had to ask ourselves a year ago where can we bring differentiation and competitive advantage. We understood that Mahindra has a dominant DNA and in order to chase SUV market share, we should not try to chase who we are not. Through this we started to find out what our brand idea was and we defined it as “Explore the Impossible”. We also decided to be an ‘authentic SUV’. We are in the midst of a transformation in terms of our identity, we are undergoing a visual identity transformation in terms of our logo, which you will find in our dealerships and how we design our products. As we’re thinking about establishing who we are, clearly the design element is really important, to create products that touch the emotional sweet spot and that’s what will drive aspirational value. This is the reason why design has been given a very important role in our organizational structure.
Given that Mahindra has always been known as an SUV brand, what was the need to redefine the brand?
It was more about what kind of products we would make in the future. Looking for a battle for market share, one can start making products that are more crossover in nature. We want to gain market share by being authentic to who we are. It was needed in a market where you have players who are fundamentally new to SUVs and are making vehicles that aren’t really SUVs. This was not the case earlier, where SUV makers producing authentic SUVs were few.
Do you have the definition of an authentic SUV?
It has two parameters, one external and the other internal. For example, if we have some sub parameters for our impeccable appearance – like ground clearance, seat height etc., for each of these we have defined a range in which we will be, so none of our products should be the exact same But it would be within that range of definition. We have done this on parameters 25-30 for which we have a range band. It gives the design and product development team a clear direction on what they cannot do. They cannot offer a product that does not meet that particular brand line.
Will the new M&M identity mean completely new designs, or will you be building on top of your heritage?
We have established a design philosophy that will not let go of the past. A fine example of an industry that appreciates the authentic means of Swiss watches, even after so many years they remain very true to their origins. So that’s the key challenge for us, which is defining what our designing philosophy will be in this context. But it is very clear that we will not give up on the basic philosophy of the past.
When will we see the first model launch based on your new design philosophy?
You’ll even start to see some of this in the coming refreshes. So after two years from now you will start seeing its full effect.
You have been in the EV field for many years. How do you see it shaping up for M&M?
Here we are clearly stating that in our upcoming electric model we understand what is our core, however we will not try to do it all and rely on partnership as well. Many of these technologies, such as those related to batteries, are developing very rapidly. Another thing we’ve noticed is that the penetration of EVs for personal use has been consistent over the past ten years. What has changed is that there is an acceptance that electric vehicles are the future. Our focus is now on getting the right products by 2025. We don’t think India is going to be a significant market for EVs for the next three years.
Will the demand pick up from here after the second wave?
I am sure the demand will pick up. The pace with which the rural market has recovered from the second wave in a span of 4-5 weeks gives me confidence. If a third wave also comes it will be more manageable and calibrated. Overall I am getting less anxiety.
Has the ongoing chip shortage changed anything for you in terms of supply chain management?
Chip shortages have been caused by a variety of things, one of which is the pandemic. However, the semiconductor potential cannot be established at short notice. The difference from now on is that as OEMs we are trying to keep our long term requirements in mind while considering sourcing chips. Something we didn’t think of before the pandemic.
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