India’s Mahindra to seek more partnerships for EV components | Tech US News

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DAVOS, Switzerland, May 23 (Reuters) – India’s Mahindra & Mahindra ( MAHM.NS ) will seek more components from other companies to boost its electric vehicle (EV) portfolio, its chief executive told Reuters. Told to

Anish Shah said that Mahindra had over time focused on developing EV components in-house, but has now changed strategy to form partnerships to achieve faster growth in the segment.

Mahindra signed a partnership deal with Volkswagen ( VOWG_p.DE ) last week that will see it equip its electric cars with motors, battery system components and cells made by the German carmaker. . Read more

“The world is moving towards a lot of partnerships. It’s better to have the best of what’s out there rather than doing everything yourself,” Shah said in an interview at the World Economic Forum summit in Davos.

“At this stage it is VW and as we see similar strengths in other sectors, we are ready to look at the different components that we will bring in, and do what we can do,” he added. Domestics are also very good.” .

While Mahindra is betting big on developing its EV portfolio, it will face stiff competition from India’s Tata Motors ( TAMO.NS ) in a country where the clean mobility sector is growing rapidly. Is.

Prime Minister Narendra Modi is offering billions of dollars in incentives to companies to build EVs, as India seeks to meet its climate change and carbon reduction goals.

While India’s EV market represents just 1% of the country’s roughly 3 million annual vehicle sales, consumers still opt for fuel-efficient cars that are far more affordable.

Tata dominates India’s EV market and last year raised $1 billion from TPG for the business. MG Motor India, which is owned by China’s SAIC Motor ( 600104.SS ), also plans to raise funds to develop its EV business. Read more

Shah said Mahindra would use “significant funds” for EVs and make them available, adding: “We will always be open to value creation opportunities”.

Mahindra has developed a portfolio of EV commercial vehicles in India, but the latest push is focused on passenger cars, and especially sports utility vehicles (SUVs).

“Our strike zone has been authentic SUVs, that’s where we’re going to stay… We’re not going to make EV sedans, no hatchbacks,” Shah said.

Reporting from Aditya Kalra in Davos; Edited by Alexander Smith

Our Standards: Thomson Reuters Trust Principles.

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