“There is no clear visibility on Tesla launching a lower-priced model. And in the absence of that, it does not make sense to have a local manufacturing,” he said.
He said automakers usually need a strong demand forecast of around 200,000 units per year before investing in local production.“If we do not have that without a model priced below $30,000, it is difficult to justify a local plant. And in the absence of a local plant at that price point, it’s difficult to see major disruption from any newcomer,” he added.
Rakesh expects M&M to be the fastest-growing automaker in 2025-26 (FY26). He attributed this to successful model launches like the XUV 700 and new electric vehicles (EVs). M&M’s farm equipment business, including tractors, is also doing well, with the company gaining market share in the lower power segment.
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Rakesh said that Eicher Motors is also seeing higher growth than its peers due to a shift in strategy. “They have pivoted towards growth, activated more channels, and adjusted their price points. This has helped them perform better than the rest of the two-wheeler industry,” he explained.
Maruti Suzuki is expected to see growth in domestic and export markets, supported by new hybrid technology models that may revive the entry-level segment.
On the other hand, the two-wheeler market is facing challenges due to financing issues. Rakesh highlighted that captive financing arms like Hero FinCorp report losses and high credit costs. This has also affected non-banking financial companies (NBFCs) and microfinance institutions (MFIs), leading to slowdowns in lending and growth, especially in states where MFIs have a strong presence.
Also Read: Tesla to begin hiring in India, eyes low-cost EV entry after PM Modi’s US trip
For the entire interview, watch the accompanying video
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