M&M LINES UP OVER A BILLION TO POWER ITS EV PLAY
Mahindra & Mahindra seems to believe that an end to the ICE (internal combustion engines) age might well be closer than what appears on the rear-view mirror and is committing more than a billion dollars to stay ahead of a crowded pack in the EV drag race.
Like JLR and its other peers, India’s utility vehicles leader is betting big on the tectonic shift in the automotive market, and is seeking to add an electric portfolio, perhaps within the next five years. It also plans to create two skateboards for the latest EV outputs in North America, said people in the know.
The money saved from an altered capital allocation policy implemented by Anish Shah, the new MD, will go into the EV strategy. About Rs. 3,000 crore learnt for a proposed JV with now called off- could be located to the EV business.
It would mean a significant departure for M&M known for its diesel range to wards a portfolio enhanced with petrol and electric powertrain options.
Despite a first-mover advantage after the acquisition of Reva Electric, Mahindra has out to Tata Motors in the SUV EV space. The new structure is aimed at seizing back leadership and being an end-to-end solution provider for EVs.
THE OLD ORDER CHANGETH
The company has divided the EV business into two verticals Last Mile Mobility and EV Tech Center. The last mile mobility division will be headed by Mahesh Babu, whereas the EV Tech Center division will be headed by Pankaj Sonalkar. Both will report to ED Rajesh Jejurikar. The detailed organization structure will evolve over the next four weeks, Jejurikar said in an internal memo seen by ET.
Jejurikar confirmed to ET that over the next three to five years, there will be an investment of Rs. 3000 crore in the electric vehicle business. However, if that were to be extrapolated over a longer period, especially the born EV SUV to be developed out of the company’s North American technical center- the investment will easily cross a billion dollars, said people in the know.
“The reason for reorganization is to focus effort to prepare ourselves for transitioning toward higher electrification” Jejurikar told ET. “We believe the changes will enable us to deliver growth in the last mile mobility vertical while ensuring a very high focus on creating products and technology to make us ready for the future. In the period- 2027-2030 we will be prepared for a possible migration of 30% of the business to be electric.
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