Mahindra’s engineering expertise along with the design centre and vehicle development facilities will be utilised by EV Co.
Mahindra & Mahindra has big plans for its newly-established electric vehicle firm known as EV CO. While the final name of the company is yet to be decided, Mahindra is already lining up a range of investments in a hope to make a strong impact in the burgeoning electric vehicle space in the country, which has Tata Motors leading the way with the Nexon EV.
Anish Shah, Managing Director, Mahindra & Mahindra told in an interview that his brand is aiming to take “leadership in this space”. The homegrown SUV specialist will reveal a trio of zero-emission vehicle concepts on August 15, 2022 and they will lay a foundation for the future EVs from the brand under its Born Electric Vision strategy.
The upcoming range of products is expected to contribute around two lakh unit sales and on a larger trajectory, it will be responsible for around 30 per cent of the total sales volumes by 2026-27. While Mahindra’s expertise in various fields will be leveraged and the current vehicle lineup’s popularity could be taken advantage of, the EV Co. may also have its own brands moving forward.
Four of the five products planned till 2025-26 will be born electric vehicles, meaning that they are based on dedicated EV architecture. Mahindra could leverage the nameplates like XUV700 and Thar for use in the EV Co. business. Earlier, Mahindra revealed plans to invest around Rs. 4,000 crore between 2021-22 and 2023-24 and more heft sum of money is waiting in the pipeline as well.
Mahindra is looking to pump in Rs. 6,000 crore in the time period between 2024-25 and 2026-27. Mahindra’s engineering expertise along with the design centre and vehicle development facilities will be utilised by EV Co. In the new EV-only company, BII (British International Investment) will have a sub-5 per cent stake and it could be increased on the longer run.
The British investment firm and Mahindra penned down an agreement to invest up to Rs. 1,925 crore each into the new firm. In September 2022, Mahindra will debut the XUV400, a compact electric SUV to take on Tata’s Nexon EV.