M&M Realigns EV Strategy, Eyes Battery Powered Variant For All Its SUVsMarch 10, 2021
Mahindra and Mahindra Ltd. looks to introduce battery powered vehicles in its sports utility vehicle line-up as it realigns its electric vehicle business.
“The group is readying itself for a world where EVs will evolve through different adoption curves with different trajectories across segments,” Mahindra said in an internal note, titled ‘The Future of EVs’, that was seen by BloombergQuint.
The automaker has a two-pronged strategy to strengthen its position in the EV market. M&M, according to the note, is setting up two new verticals. They are:
The last-mile mobility vertical, which will be led by Mahesh Babu, chief executive of Mahindra Electric Ltd., will focus on electric three-wheelers (both passengers and cargo) and quadricycles, and also make powertrains for the global markets, a person privy to the discussions told BloombergQuint on the condition of anonymity.
Development, procurement and manufacturing will take place at the company’s electric vehicle plant in Bengaluru. It already has products namely, Treo, Atom and Alfa, the task now will be to drive sales and open business-to-business segment in domestic and export markets, ramp up manufacturing and manage costs, the note said.
The second vertical will be led by Pankaj Sonalkar, chief executive officer of Mahindra vehicle manufacturing, who was earlier also supposed to take charge as chief operating officer of the Mahindra-Ford JV.
The vertical will look at converting Mahindra’s existing SUV line-up into electric vehicles, the person cited earlier said, adding the idea is to have an EV variant for each product.
Sonalkar will also work on developing a new EV platform, Born Electric SUV, for Indian and global markets. Product development for the platforms will be done in Detroit, the note said, adding the tech centre will focus on software development for entire EV portfolio, embedded system capability, charging solutions and product planning.
The new verticals would report to Mahindra’s executive director for automotive and farm sectors, Rajesh Jejurikar.
Investment for the new strategy will be finalised at the group level, a part of which will have the investment that was earlier earmarked for the joint venture with Ford Motor Co. In 2019, Mahindra announced it will spend Rs 650 crore to buy 51% stake in the Ford JV.