Mahindra Group is set to begin local manufacturing of electric vehicle (EV) batteries in India, driven by the projected rise in demand for EVs. This strategic move aims to solidify Mahindra’s position in the growing EV market.
In a recent interaction with PTI, Mahindra’s MD and CEO, Anish Shah, highlighted the significance of domestic production to meet the increasing demand. “One area that we continue to look at more closely is cell manufacturing, and that is something where there are various considerations… if we feel it’s essential for us, we will look at a partnership for cell manufacturing,” Shah stated.
To achieve local battery production, Mahindra is exploring partnerships with global technology companies and private equity investors. Shah emphasized that Mahindra will not shoulder the entire financial burden alone. “We will look at a global technology partner, and potentially at private equity partners as well because we will not put the entire capital,” he said. This collaborative approach aims to enhance Mahindra’s ability to produce battery cells domestically.
Once a pioneer in the Indian electric car market, Mahindra has recently fallen behind competitors, particularly Tata Motors. Currently, Mahindra offers only one electric model, the XUV400. To regain its market presence, Mahindra plans to launch a series of new products and build a comprehensive ecosystem for its upcoming electric cars. Shah emphasized, “We believe that the launch of our new electric vehicle models starting January 2025 would play a key role in this aspect.”
Despite the optimistic outlook, Mahindra faces significant challenges, including range anxiety and the high cost of EVs. Another major challenge is the underdeveloped EV charging infrastructure in India. Shah pointed out that India has only 27,000 chargers compared to the US’s 176,000 and China’s much higher numbers. “What is not in place today is EV charging and that has to develop now,” Shah said.
Mahindra also has long-term plans for its electric vehicle arm, Mahindra Electric Automobile Ltd (MEAL). Shah mentioned that the company is considering a possible listing of MEAL around 2030. “We will probably look at in the 2030 timeframe or so,” he noted.
In addition to launching new models, Mahindra plans to introduce nine internal combustion engine (ICE) SUVs, seven EVs, and seven light commercial vehicles by 2030, aiming for a significant presence in both traditional and electric vehicle markets.
Mahindra’s ambitious plans reflect its commitment to innovation and growth in the evolving automotive landscape, with a strong focus on local manufacturing and strategic partnerships.
