M&M to introduce 7 battery electric vehicles by 2030

Despite a downturn in some global electric vehicle (EV) markets, Mahindra & Mahindra, a prominent Indian automaker, has reaffirmed its commitment to the EV sector. The company expresses confidence that the Indian market will not experience a similar downturn, citing significant growth potential.

Anish Shah, Managing Director & CEO of M&M, addressed this topic during the company's post-earnings press conference on Wednesday. He stated, "While certain global markets are experiencing challenges due to insufficient charging infrastructure, these markets have already achieved approximately 20 per centEV penetration. In contrast, India's EV penetration currently stands at just 1.5 per cent, indicating substantial room for growth. In the Indian context, EVs offer direct benefits in terms of reduced fuel costs and lower emissions."

Shah emphasised that the key to initiating the transition towards electrification lies in introducing desirable products to the market. He noted, "This crucial factor has yet to fully materialize in the Indian market. Once such products become available, they will stimulate demand and generate greater interest in EVs."

For the current fiscal year, Mahindra & Mahindra has ambitious expansion plans. The company intends to increase its monthly production capacity by about 15,000 units. This expansion includes 10,000 units dedicated to EVs and 5,000 units for models such as the Thar 5-door, XUV3XO, and XUV400. This addition will boost the company's monthly capacity from 49,000 units at the end of FY24 to 64,000 units.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector) at M&M, reiterated the company's commitment to EV technology. He expressed optimism about their EV plans and confirmed that they are "on track" with their updated EV strategy, which involves launching a series of models starting in 2025. The Mumbai-based automaker has set a goal to introduce 7 battery electric vehicles (BEVs) by 2030. Currently, Mahindra's presence in the EV segment is represented by the XUV400 model.

Jejurikar also highlighted a technological advantage that Mahindra possesses. He explained that one of the challenges faced by the Western world, particularly Europe, was their reliance on NMC (Nickel Manganese Cobalt) battery technology, which remained costly compared to LFP (Lithium Iron Phosphate) technology. He stated, "Much of our focus is on LFP technology as we develop new products. This gives us a more favourable cost equation compared to NMC-based vehicles."

While Mahindra currently offers petrol, diesel, and EV powertrains for its SUVs, the company remains open to other options. Shah reiterated their stance on potentially adopting hybrid technology, saying, "If there is strong consumer demand for hybrid powertrains, we have the capability to introduce them within a reasonable timeframe. From that perspective, we are confident in our current positioning."

It's worth noting that Mahindra's interest in alternative powertrains isn't new. Approximately 16 years ago, at the Auto Expo 2008, the company showcased various platforms including drivable full hybrid vehicles and micro (start/stop) hybrid vehicles. ETAuto has reported that a few years ago, Mahindra had begun development on a hybrid version of the Marazzo MPV, although this project did not reach the production stage.

In the immediate future, Mahindra is preparing to launch the 5-door Thar Roxx on August 15.

Regarding partnerships, Mahindra has been collaborating with Volkswagen Group. In February of this year, the two companies signed an agreement for Volkswagen to supply certain electric components and unified cells from its MEB platform for Mahindra's INGLO electric platform. Both companies have expressed interest in potentially expanding this collaboration.

When questioned about Mahindra potentially being Volkswagen's sought-after partner in India, Shah responded, "We have developed a very positive relationship with Volkswagen. As with any of our business ventures, if there's a compelling reason to form a partnership that benefits us, it's something we would consider. That's the current state of our relationship."

On the financial front, Mahindra & Mahindra reported strong results for the first quarter ended June 30, 2024. The company's consolidated net profit after tax (PAT) grew by 20 per centto reach INR 3,283 crore, up from INR 2,745 crore in the same period last year. Revenue also saw a 10 per centyear-on-year increase, rising to INR 37,218 crore compared to INR 33,892 crore in the April-June quarter of the previous fiscal year.