Mahindra and Mahindra to shift focus to electric 3-wheelers1 min read . Updated: 31 May 2020, 11:07 PM IST
Mahindra and Mahindra has set an ambitious internal target of selling 10,000 electric three-wheelers each month and is in talks with state governments as well as private entities to promote sales of these zero-emission vehicles
Mahindra and Mahindra Ltd (M&M) is intensifying its focus from electric cars to electric three-wheelers as India’s top electric vehicle maker by volume seeks to improve the viability of its electric mobility business, said two people aware of the plans.
The Mumbai-based company has set an ambitious internal target of selling 10,000 electric three-wheelers each month and is in talks with state governments as well as private entities to promote sales of these zero-emission vehicles, said the people cited above, requesting anonymity.
“Development of electric cars requires a lot of investment and the competition is very stiff in a very limited space. So, it is prudent of M&M to have changed its strategy," said one of the two people cited above. “There is still no market for electric cars but in the next three to four years there will certainly be one for electric three-wheelers and two-wheelers".
M&M has been initially focused on producing electric cars. However, factors such as inadequate charging infrastructure and higher vehicle prices have kept most customers away so far and industry sales modest. This has led M&M to focus more on electric three-wheelers, which it feels is a commercially more viable business proposition.
This shift in strategy also comes at a time when the Centre has been pushing sales of eco-friendly vehicles to curb pollution in most cities by incentivizing sales of such vehicles. The company believes it can achieve its target of selling large numbers of electric three-wheelers in an enabling policy environment, said Mahesh Babu, managing director, Mahindra Electric Mobility Ltd.