By 2027, Mahindra aims to have its electric SUVs contribute around 20-30% of the company’s overall SUV sales
Mahindra is among the first established players to enter the EV space. It started with acquisition of Reva in 2010, followed by launch of e2o in 2013 and e2o Plus in 2016. Over the years, Mahindra’s EV portfolio was expanded to include eVerito, eSupro passenger and cargo van and electric three wheelers Treo and eAlfa Mini.
However, in electric passenger car segment, it’s Tata Motors that currently leads with Nexon EV. This could change soon, as Mahindra has chalked out a detailed EV roadmap. If things go as per plans, Mahindra might overtake Tata Motors in EV sales. Mahindra chairman Anand Mahindra has also hinted that having strong competitors like Tata Motors prompts them to do better.
Mahindra upcoming electric SUVs
Mahindra first electric SUV will be XUV400, which will directly rival Tata Nexon EV. It is scheduled to debut later this year in September. Sales of XUV400 are expected to commence in first quarter of CY2023. XUV400 will utilize XUV300 platform and is not a born-electric car. It is expected to have a range of around 300 km. In comparison, Nexon EV has a certified range of 312 KM. Recently launched Nexon EV Max variant has ARAI certified range of 437 km.
After XUV400, Mahindra will be launching four more SUVs by March 2026. Some of these could utilize an entirely new born-electric platform currently being developed by Mahindra. Earlier, the company had stated that it is exploring possibilities of a tie-up with Volkswagen AG for supply of components needed for its electric vehicles. Partnerships with other companies, which can help boost Mahindra’s EV business, can also be considered.
Focus on investments
As developing new EV platforms from the ground-up requires sizable resources, Mahindra is actively looking for investments. To ensure funds are easily accessible for its EV business, Mahindra has launched a new EV subsidiary. This entity will focus on developing passenger electric cars. The first investor is British International Investment (BII), which will be investing $250 million (approx. INR 1,986 crore) in the new entity. Mahindra will be contributing an equal amount.
With the investment by BII, valuation of the new EV entity is at $9.1 billion (approx. INR 70,000 crore). Mahindra said that it will continue looking for more investments with the goal to achieve leadership in passenger EV space. New investments will also help achieve higher valuation of the new EV entity.
Even though Mahindra is currently nowhere close to Tata Motors in passenger EV space, it has done better in terms of getting investments. Last year, Tata Motors had secured funding worth $1 billion from TPG’s Rise Climate Fund with valuation at approximately $9.1 billion.
Mahindra will also be looking to leverage incentives worth billions of dollars being offered by Government of India. This is aimed at boosting EV production and adaptation and subsequently reducing the nation’s carbon footprint. Mahindra is looking at electric SUV sales at 20-30% of its total SUV sales by March 2027. At 30%, the company expects volumes to be around 2 lakh electric SUVs per year.