Mahindra & Mahindra (M&M) Ltd is in the process of identifying a new location to set up a full-fledged manufacturing unit for electric SUVs as the leading auto manufacturer sells less than a third of its SUVs in electric. An ambitious target has been set. format – about 2 lakh units – by 2027.
As the company released its electric SUV vision with the unveiling of a new EV platform, it showcased five electric SUVs (in the above 4-mtr length category) under two EV brands and delivered MEB. For this, it established a partnership with Europe’s leading automaker, Volkswagen. Modular Electric Drive Matrix) electric parts of its new EV platform, Mahindra is now looking to set up a new factory to produce electric SUVs.
“One of the criteria to decide is what kind of subsidy we can get from states. We are waiting to go through the process and will keep two or three options open before consolidating our manufacturing plans,” Rajesh said. Jejurikar, Executive Director, Auto & Farm Sector, Mahindra & Mahindra said. Business line during the conversation.
The company is open to several options. Subsidy will not be the only criterion. But it is an important part in deciding the location,” he added, “Of course, the facility should be located only in the automotive hub area. Now we have enough states with an automotive ecosystem and all of them are looking to attract EV investment. We have also started discussions with a few states for the proposed EV manufacturing unit,” Jejurikar said.
Mahindra has set an ambitious target of selling 20-30 per cent of its SUVs in electric versions by 2027, with an annual volume of around 2 lakh units. As a first step in this direction, the company will unveil its electric SUV XUV400 next month and its deliveries are expected to start during the first quarter of 2023.
M&M will have a separate EV arm to develop, manufacture and sell electric SUVs and the electric arm has already raised ₹1,925 crore from British International Investments, a UK development financial institution, at a valuation of ₹70,070 crore.
M&M will also invest an equal amount in the EV arm. Total capital expenditure for the EV arm is estimated at ₹8,000 crore between FY24 and FY27 for product, supply chain and manufacturing development.
Industry experts say the Indian government’s recent policy initiatives are positioning the country to leverage its market size to become a global EV investment destination.
Currently, southern states such as Tamil Nadu, Karnataka and Telangana, and western states such as Maharashtra and Gujarat in the west, are leading the EV manufacturing race. States like Tamil Nadu have two auto and electronic industrial clusters that complement and support each other. With a host of incentives, Tamil Nadu has attracted over ₹20,000 crore worth of investment in the EV sector.