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| | Mahindra chalks up Rs 4,000 crore investment to develop EVs
Domestic auto major Mahindra & Mahindra will be investing close to Rs 4,000 crores in the next 3-5 years to develop and add electric vehicles to it's portfolio, according to a report by the Economic Times
The homegrown automobile giant has so far invested almost Rs 500 crores on developing electric vehicles and is now looking ahead at not only leading the EV market in India in the near future, but also to act as a supplier for a joint venture partner in motor and power electronics.
This investment will be in four parts, first is the investment in research and development—battery technology, motors, power electronics etc, for which Mahindra has already committed Rs 600 crore and the second is on capacity expansion. The third will be electrifying Mahindra’s current product portfolio and fourth is developing a dedicated electric platform. |
Pawan Goenka, MD of M&M told ET, Mahindra is looking at three different buckets - the affordable EV market with Mahindra vehicles at the price range of Rs 7 lakh to Rs 10 lakh, a slightly expensive vehicle around Rs 15 lakh plus that will be shared with SsangYong and finally Pininfarina vehicles, which will be priced above Rs 25 lakh.
“We do believe that if we really want to make electric vehicles affordable, there will have to be few component suppliers who have scale and Mahindra wants to play a part there. Any other OEM in India, wants to come to Mahindra Electric and operate at completely arm’s length basis, they can get the same technology that Mahindra Electric is supplying to M&M,” stated Goenka. “Mahindra has committed two future platforms, which we are working on, one and or two which are under the business planning and then developing a brand new platform with Pininfarina, which if done grounds up will cost Mahindra half a billion dollars, which we have not decided as yet,” informed Goenka.
People in the know say, electrifying existing platform will cost M&M Rs 200 to Rs 300 crore and for a grounds up new platform, M&M will have to spend Rs 1,000 crore. The company is likely to develop one new platform and three to four Mahindra platforms are likely to be electrified going ahead.