Guwahati: Mahindra & Mahindra expects to lead sales of electric sport-utility vehicles (SUVs) in India, its CEO announced, a day after the manufacturer received $9.1 billion for its new electric vehicle (EV) subsidiary.
Late Thursday, Mahindra and British International Investment (BII) announced that they would each contribute up to $250 million to the EV company, which will focus on four-wheel passenger electric cars.
The Mumbai-based business now sells some of India's most popular combustion engine SUVs, such as the Scorpio and Thar. It now intends to dominate the EV industry with similar vehicles.
"We are extremely sure that we will take leadership in this sector," Mahindra CEO Anish Shah said at a news conference. "This is not a one-time investment. This is also where we begin. We will continue to attract more investors at greater values "he stated.
Mahindra is the latest Indian manufacturer to tap global green funds by separating its clean mobility company into a distinct subsidiary, following in the footsteps of competitor Tata Motors, which secured $1 billion from TPG's Rise Climate Fund last year at a valuation of approximately $9.1 billion.
The move also comes as corporations attempt to capitalise on billions of dollars in incentives granted by Prime Minister Narendra Modi's administration to create EVs as India strives to fulfill its climate change and carbon reduction targets. M&M Will Concentrate On Electric Vehicles After Terminating Joint Venture Talks With Ford.
The EV market in India, dominated by Tata Motors, accounts for barely 1% of the country's yearly sales of over 3 million vehicles. The government hopes to increase this to 30% by 2030.
Mahindra anticipates that electric versions will account for 20% and 30% of total SUV sales by March 2027. With a 30% market share, Mahindra plans to sell roughly 200,000 electric SUVs per year, according to Rajesh Jejurikar, executive director of Mahindra's auto and agricultural business. Jejurikar stated that the firm would disclose more specifics about its future product plans in August, but that the first electric SUV will be unveiled in September, with sales expected to begin in the first quarter of 2023 four additional models by March 2026.
Mahindra, which is developing an all-electric platform named "Born Electric," said in May that it is considering a relationship with Volkswagen AG of Germany to supply EV components for its cars.
In the same month, Mr. Shah told Reuters that the firm is looking into additional similar collaborations to help grow its EV business.
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