Mahindra to seek partnership for electric vehicle components | Tech US News


Auto giant Mahindra & Mahindra (M&M) is looking to strengthen its electric vehicles (EVs) portfolio and the company will seek partnerships to source more components from other companies. On Monday, M&M’s shares traded sharply higher.

Mahindra Chief Executive and Managing Director Anish Shah told Reuters that the company had over time focused on developing EV components domestically but now plans to forge partnerships to achieve faster growth in the sector. The strategy has changed.

Last week, Mahindra signed an agreement with Volkswagen to explore the use of MEB electric components for Mahindra’s new “Born Electric Platform”. Both companies will review the scope of cooperation.

In a statement, Mahindra announced its plans to equip its “Born Electric Platform” with MEB electric components such as electric motors, battery system components, and battery cells.

Regarding the deal with the German automaker, Shah said it is Volkswagen at this stage, and “as we see similar strengths in other sectors, we are ready to look at different components. What we’ll bring, and do what we love so much. It’s good at home, too.”

Notably, Mahindra will face stiff competition from Tata Motors, which currently dominates the electric vehicle market in the country. Last week, Tata raised about $1 billion from TPG for the business. Apart from this, another player MG Motor India led by China’s SAIC Motor is also looking to raise funds to develop its EV business.

The Mahindra chief said they would use “significant funds” for EVs and make them available. “We will always be open to valuing creative opportunities,” he added.

As India looks to meet its climate change and carbon reduction goals, Prime Minister Narendra Modi has announced billions of dollars in incentives for companies to develop and strengthen their EV businesses.

It needs to be noted that, Mahindra has a developed EV portfolio in the commercial vehicle segment, but now the company aims to push EVs in the passenger car segment 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.

At the World Economic Forum summit in Davos, Shah said in an interview that “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.”

Shares of Mahindra are trading on BSE. 941 by each 36.40 or 4.02% around 3.13 pm. Shares are near highs of the day. 943.40 per piece.

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