Mahindra announces it will look into sourcing additional components from other companies to expand its EV portfolio

Mahindra and India’s Mahindra will look at sourcing more components from other companies to expand their electric vehicle (EV) portfolio, the chief executive told Reuters.

Anish Shah said Mahindra has focused on developing EV components in-house over time, but has now changed course to forge partnerships to achieve faster growth in this segment.

Mahindra last week signed a partnership deal with Volkswagen in which it will consider fitting its electric cars with motors, battery system components and cells from the German automaker.

“The world is moving towards a lot more partnerships. It’s better to find the best there is than to do it all yourself,” Shah said in an interview at the World Economic Forum summit in Davos.

“At this stage it’s VW (Volkswagen) and as we see similar strengths in other areas we are open to looking at different components that we would bring in and what we are very good at doing internally as well.” , he added .

Though Mahindra is betting big on the development of its EV portfolio, it will face stiff competition from India’s Tata Motors in a country where the clean mobility sector is rapidly gaining momentum.

Prime Minister Narendra Modi is offering billions of dollars in incentives for companies to build electric vehicles as India seeks to meet its climate and carbon reduction targets.

India’s EV market represents just 1 percent of the country’s annual sales of about 3 million vehicles, with consumers still opting for fuel-guzzling cars that are far more affordable.

Tata dominates the Indian EV market and last year raised US$1 billion (about Rs.7,754 billion) from TPG for the company. MG, which is owned by Chinese company SAIC Motor, also plans to raise funds to develop its EV business.

Shah said Mahindra will devote and have “significant funds” on electric vehicles, adding, “We will always be open to value opportunities.”

Mahindra has developed a portfolio of EV commercial vehicles in India, but the latest foray is focused on passenger cars and more specifically on sports utility vehicles (SUVs).

“Our strike zone was authentic SUVs, that’s where we’re going to stay… we’re not going to make EV sedans, not hatchbacks,” Shah said.

© Thomson Reuters 2022 Mahindra announces it will look into sourcing additional components from other companies to expand its EV portfolio

Ryan Sederquist

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