Mahindra Electric sales double – New investment to increase production
Mahindra Electric is going to invest Rs 1,000 crore to increase production from 15,000 units to 70,000 units.
2018-19 has been a good year for Mahindra Electric as it managed to increase its sales 2.5 times in just 1 year. In the last year, the company sold 10,276 EVs, compared to 4,026 units in the previous year. And the way the company looks at it, it is going to continue the momentum and is all prepared to double its sales in the current year, possibly crossing the 20,000 unit mark.
Even though the auto-industry is going through a tough phase, demand of electric vehicles from fleet operators and three-wheeler EVs in general has been strong, something which Mahindra Electric is counting upon for this year’s growth. Additionally, government’s ESSL’s order’s second phase (combined order of 10,000 units) is also helping Mahindra Electric to register continuous sales.
Earlier, Mahindra had also partnered up with EV fleet operator SmartE, with whom it plans to deploy 10,000 electric 3-wheelers across the country by 2020. Another partnership with Blu Smart is expected to help it have 500 eVeritos on Indian roads by March 2020, a considerable increment from the current count of 70 units.
The company is also working closely with the government, both at central and state levels. The second phase of EESL order consists of 9,500 units where 50% of the vehicles will be supplied by Mahindra, while the rest of the order will be fulfilled by Tata Motors. Other area where it is looking for synergy is in the electric-three wheelers.
The central government has already clarified that electric 3-wheelers don’t need permits, however certain states have some challenges regarding this. Mahindra Electric is working closely with all stakeholders to sort the issues out and hopes to deploy more of its Treos on roads, soon.
Mahindra Group has been very serious about its EV business. Last year, it had announced an investment of INR 1,000 crores (over a period of 3 years). It plans to increase its manufacturing capacity to 75,000 units/year, strengthen its R&D and develop powertrains for EVs from group firms like SsangYong and other global partners.
Other vehicles which we can expect to hit showrooms from Mahindra Electric’s stable in the foreseeable future are the electric KUV100 and electric XUV300. The e-KUV100 is almost ready and is being tested extensively, however the e-XUV300 is still some months away.
As far as the industry is concerned, Mahindra Electric will be facing increased competition coming in from MG Motor, Hyundai, Tata Motors, Maruti and Nissan. Even though the offerings from these players might not exactly be in the same segment as that of Mahindra’s, the new products will certainly affect numbers for the Indian automaker. On the brighter side, the market will mature and infrastructure will also improve, something which Mahindra Electric has possibly silently been wishing for since years.