Mahindra Electric Mobility pursues partner to capitalize $100 million into EV business

Mahindra Electric Mobility pursues partner to capitalize $100 million into EV business

Mahindra & Mahindra has announced that it is looking for a prospective partner for a corporation deal in its private subsidiary Mahindra Electric Mobility. A few companies have by now accomplished the due diligence process to buy a stake, a move that will help parent Mahindra & Mahindra (M&M) accomplish its goal of getting $100 million (Rs 750 crore) for product development.

Pawan Goenka, Managing Director, Mahindra and Mahindra, said: “As we look at the next 3-4 years of our product development plan, there is approximately about $100 million worth of investment that will happen (in Mahindra Electric Mobility) and we are hoping that all of that has been generated from outside sources. We are in talks with numerous people right now and some of them have by now gone through the due diligence phase.”

During FY20, M&M and Mahindra Electric Mobility registered sales of 14,602 units (966 four-wheelers and 13,636 units of three-wheelers), recording 42 percent growth over the 10,276 units (1,811 four-wheelers and 8,465 three-wheelers) retailed in FY19.

By the time stricter Corporate Average Fuel Economy norms (global norms that are aimed at lowering fuel consumption) are introduced in India by 2022, M&M will have a ‘substantial size’ of electric vehicles in its portfolio, Goenka further.

The much-delayed battery-electric version of the KUV100 will finally be launched this quarter, making it the fourth launch (after Hyundai Kona, MG ZS EV, Tata Nexon EV) in the electric SUV space. In the next few quarters, the electric version of the XUV300 will be launched.

M&M, through its subsidiary Mahindra Electric Mobility, has capitalized in the development of the next-generation EV platform MESMA 350. The Mahindra Electric Scalable and Modular Architecture 350 is a 350-volt powertrain that supports motor sizes ranging from 60 kW to 280 kW, dual-motor concepts and battery sizes up to 80 kWh.

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