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Mahindra in talks with Indian states for setting up EV production sites

The automaker has lined up five new electric Sports Utility Vehicles (SUVs) with the first four expected to hit the roads between December 2024 and 2026. (Bloomberg)Premium
The automaker has lined up five new electric Sports Utility Vehicles (SUVs) with the first four expected to hit the roads between December 2024 and 2026. (Bloomberg)

Mahindra & Mahindra is particularly focusing on SUVs segment of EVs and is currently considering incentives offered by different state governments before finalising the strategy for EV production

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Auto-maker Mahindra & Mahindra is in talks with multiple states in India for setting up manufacturing sites for its upcoming electric SUVs and is currently evaluating the incentives offered by the government of different states.

The company official also told the news agency PTI that they have lined up five new electric Sports Utility Vehicles (SUVs) with the first four expected to hit the roads between December 2024 and 2026.

"One of the criteria to make that decision (electric vehicle production) is the kind of subsidies we may get from the state governments. So, we are waiting to go through that process and will keep two-three options open before firming up our manufacturing strategy," M&M Executive Director - Auto and Farm Sectors - Rajesh Jejurikar said during an interaction.

The company has earlier started consultations with a few state governments regarding the manufacture of the new electric SUV range.

Mahindra rolls out its regular ICE (Internal Combustion Engine) vehicles from plants in different states, such aof Maharashtra and Tamil Nadu.

Asked if M&M would go in for production at its existing passenger vehicle manufacturing plants or look for a new plant for electric SUVs, he said, "We are open to multiple options. I am not saying that subsidy will be the only criteria but it is definitely one criterion in deciding where to make."

"We are not worried if it is going to be common with ICE vehicles or not but we would definitely put one filter of the subsidies that we are getting for investment into the decision process," he said.

However, the company would prefer states which already have a ready automotive manufacturing infrastructure, Jejurikar added.

"It has to be in an automotive hub. So, we are obviously not going to go to a state where there is no automotive ecosystem. We have enough states now with such ecosystems which are focusing on attracting EV investments. We will evaluate those three-four different options," he stated to the news agency PTI.

The automaker plans to introduce the five electric SUVs under XUV and the 'BE' which is a new all-new electric-only brand.

The legacy brands of the company will fall under the XUV model while the new electric models would be established under the BE lineage.

Mahindra presently does not have a presence in the electric passenger vehicle sector. The company is the front runner in the domestic electric three-wheeler area with a market share of over 70%.

When asked about the company's plans regarding exporting the electric SUVs, Jejurikar said, "We have not decided on the markets yet but we have started to look at all the regulatory requirements and expectations around that, so that work is on right now."

Jejurikar mentioned that the company is in the process of ramping up its manufacturing capacity to cater to both domestic and international markets.

"Two years later if we haven't learned from the last two years then we need to be held accountable for not being a good learning organisation. So, we will definitely not repeat the mistake and we are creating enough capacity to allow us to do domestic and exports," he said.

High demand and Chip scarcity for M&M’s new models like XUV700 and Scorpio-N have contributed to long pending orders for Mahindra running up to approximately two years.

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