Mahindra Introduces New Products, Increases EV Investments

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Mumbai-headquartered auto major Mahindra & Mahindra is developing, introducing new products and making investments while also making production plans stronger as it continues to be “extremely positive” about the country’s progressive adoption of electric car penetration over the coming few years.

It anticipates a gradual shift to electric mobility, with the fleet and sports utility segments set to spearhead the change in the domestic market, according to a senior corporate executive.

“According to our internal study, 25% of current SUV buyers are interested in buying an electric SUV as their next vehicle. Additionally, according to the research, this type of transformation will take place over the next two to three years “Rajesh Jejurikar, Executive Director of Mahindra & Mahindra (auto and farm sectors), said in an interview.

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In five years, the business anticipates that 20 to 30 percent of its SUVs will be electric, he said.

Mahindra has lined up five new electric Sports Utility Vehicles (SUVs), with the first four slated to join the market between December 2024 and 2026. Mahindra is placing a significant bet on green mobility.

The carmaker intends to release the five electric SUV models under the two XUV brands and the brand “BE,” which will solely sell electric vehicles. The “XUV” label will house legacy names, while the “BE” brand will introduce the brand-new electric vehicle.

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Jejurikar elaborated on the patterns, pointing out that households with numerous automobiles will be the first to adopt electric vehicles on the home market. He continued, “The fleet market will also transition to electric very fast since it makes economic sense for them.

However, Jejurikar predicted that sales of electric hatchbacks and sedans in the personal market would be delayed because consumers would not want to spend more upfront for the family’s sole vehicle in the absence of a sufficient charging infrastructure.

“There will be a much faster uptake in the SUV category, whether entry or mid-sized, as they are generally a part of households with more than one car,” he continued.

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When asked if the country was ready for electric mobility to take off, Jejurikar responded: “Both yes and no apply. Currently, there is a 1% penetration in the C segment and a 4% penetration in the B segment. These penetration rates won’t suddenly increase to 30% or 40%.”

However, he continued, “We will see moves toward 10% and 15%, so 20-30% penetration in the next 4-5 years is a realistic road map for the segments in which we operate.”

According to Jejurikar, the business anticipates making a definitive decision about the infrastructure needed to produce its electric sports utility cars within the next 3-6 months.

The business has already introduced the mid-sized XUV 400, an electric SUV under the XUV brand that would be produced at its plant in Nashik, Maharashtra.

Given the incentives being provided, it is currently in discussions with the governments of three to four states to finalise the manufacturing schedule for the remaining goods. In the following three to six months, Jejurikar said, “We’ll have to make a decision.”

In response to a question on whether the firm would use a new facility or continue using its current plants to produce its ICE model line, he said the decision has not yet been made.

The carmaker presently produces its conventional ICE automobiles at sites spread across several states, including Tamil Nadu and Maharashtra.

Jejurikar remarked that the business has already declared that the capital expenditure for electric programs over three years will be in the range of Rs 8,000-9,000 crore for investments planned for the electric segment.

British International Investment (BII), a socially responsible investor, declared in July that it would invest Rs 1,925 crore in Mahindra & Mahindra‘s new electric car division, “EV Co.”

With the chip situation improving and record bookings for products like the Scorpio N and XUV 700, it may end up being the company’s biggest holiday season and year in terms of sales.