NEW DELHI : Automobile major Mahindra & Mahindra (M&M) is likely to invest at least ₹3,000 crore for developing electric vehicles (EV) over the next three years, with the capital expenditure on EVs and internal combustion engine (ICE) vehicles approximating each other, according to a person aware of the development.
The company also aims to launch its first EV SUV, XUV 400, in the first half of the next financial year with an aim to have a significant portfolio of vehicles in India’s EV market. M&M recently released a teaser video showing three concept EV SUVs under its ‘Born Electric Vision’, which will be unveiled in July this year.
“The company plans to invest ₹3,000- ₹5,000 crore as capital expenditure on EVs over the next three years. The ratio of capital expenditure on EVs and ICE vehicles will be 50:50,” said one of the people mentioned above, requesting anonymity.
Queries emailed to a spokesperson for M&M on late 24 February remained unanswered till press time.
Mahindra was among the pioneering Indian automakers in terms of EVs with its acquisition of majority stake in homegrown EV maker Reva back in 2010. In 2016, M&M launched the electric version of its sedan Verito—eVerito. It has, however, shut down the production of eVerito as it moves ahead with its a new roadmap for EVs.
Mahindra’s ‘Born Electric Vision’ is expected to give a major boost to the company in the highly competitive Indian auto market.
The company is also expected to bring in electric versions of its popular models in the ICE segment, including the popular Scorpio.
The interest in Indian EV market is growing, but there aren’t many four wheeler models on offer. Some of the large manufacturers in the space include Tata Motors, M&M, MG Motor, and Hyundai Motor Co. Tata Motors has also hived off its electric mobility division into a separate company —Tata Passenger Electric Mobility Ltd.
Also, Ford India, which announced last September that it will close its car manufacturing operations in India, now plans to use one its plants to manufacture EVs primarily with a focus on exports.
India’s EV market, which is at a nascent stage, is expected to grow at a compound annual growth rate of 90% in this decade to touch $150 billion by 2030, according to a report by consulting firm RBSA Advisors. In FY21, EV sales accounted for around 1.3% of total vehicle sales in India. This concerted push for EVs by Mahindra Electric Mobility also comes against the backdrop of India’s commitment at the COP26 summit at Glasgow for reducing the country’s carbon emission by one billion tonnes by 2030.
Source: livemint.com
