Mahindra & Mahindra , one of India’s largest automakers, last week unveiled two new electric vehicles priced around $25,000, challenging both domestic and international rivals in the growing Indian EV market. The news has led some analysts to turn even more bullish on the stock, with almost 90% of those covering it giving the company a buy or overweight rating, according to FactSet data. The company on Tuesday unveiled the BE 6e and XEV 9e models, costing around $24,100 and $27,800 respectively, at a launch event in Chennai. Both vehicles are built on Mahindra’s new electric-only platform called Inglo. The pricing strategy appears particularly aggressive in a market where EV adoption remains low. Electric vehicles currently account for only 2% of the 4.1 million cars sold annually in India , according to Bank of America data, compared to nearly one-third of sales in China. “The pricing is competitive, at least for the base variants,” noted Citi’s analyst Arvind Sharma in a note to clients on Nov. 27. The Wall Street bank has a buy rating on Mahindra’s stock, with a price target of 3,520.00 Indian rupees ($41), which points to 18% upside potential. Citi’s Sharma added that future EV sales aren’t accounted for in the current target price, giving it scope to increase in the future. The stock, listed on India’s National Stock Exchange, is also traded in the U.S. and Germany over the counter. MAHM-IN 1Y line Mahindra & Mahindra said the vehicles will have a range of up to 682 kilometers (424 miles) with the larger battery option. Tesla ‘s Model 3 is marketed as providing an 800-kilometer (436-mile) range, although the two companies measure their vehicles to different standards. Indian stockbroker Motilal Oswal also expressed optimism about Mahindra’s newly launched vehicles while noting some challenges. “These features, combined with the introductory pricing, make them a truly strong value proposition for customers,” said Motilal’s equity analyst Aniket Mhatre in a note to clients. “Though the pricing is certainly competitive, it remains to be seen how customer interest plays out given the lack of adequate charging infrastructure in the country.” “We, hence, remain cautious on the incremental volumes from this segment, at least in the near term,” Mhatre added. He has a price target of 3,420 rupees on the stock, which represents 15% upside and is also the median price target of all analysts covering the stock. Motilal Oswal expects Mahindra to achieve compound annual growth rates of approximately 13% in revenue and 16% in adjusted earnings over the next three years, not including EV sales. Investment bank Nomura’s Kapil Singh also retired his buy rating on the stock, with a 3,664 Indian rupee price target (23% upside) after the company unveiled the two vehicles. Tata Motors , another large automaker, currently dominates India’s small EV market, with about 70% market share. It markets its vehicles in the price range of $10,000 to $20,000. South Korea’s Hyundai Motors , meanwhile, which is the second-largest automaker by sales in India, recently listed its Indian subsidiary .