Mahindra has announced the formation of a new EV subsidiary that will focus on marketing world class electric SUVs
Mahindra can be considered as the first major OEM in India to enter the electric car segment. After taking over Reva, they formed Mahindra Electric and introduced cars like e2O and e2O Plus. These were also launched in international markets. But sales failed to meet expectations. And soon these were discontinued.
Fast forward to 2022, Tata Motors has become the leading electric car maker in India. Their Nexon EV is a huge hit. Mahindra is nowhere to be seen in the passenger electric car segment. But that is soon going to change.
New Mahindra EV Company
Mahindra has announced the formation of a new EV subsidiary. This new Mahindra EV company will launch electric 4 wheel vehicles for the global market. Mahindra has already received Rs 1,925 crore investment for the same from British International Investment (BII).
BII (formerly known as CDC Group), the UK’s Development Finance Institution and impact investor and Mahindra & Mahindra (M&M) have executed a binding agreement to invest up to Rs. 1,925 crores each into a wholly owned subsidiary of M&M that will be newly incorporated (“EV Co.”). BII will invest up to Rs 1,925 crores in the form of compulsory convertible instruments at a valuation of up to Rs. 70,070 crores, resulting in 2.75% to 4.76% ownership for BII in the EV Co. The EV Co. will focus on four-wheel (4W) passenger electric vehicles.
Despite trailing @TataMotors in the EV race, Interestingly, @MahindraRise has raised $250 million in its EV subsidiary at the same valuation of $9.1 billion as the maker of Nexon and Harrier. @tpg invested $1 billion 11-15% in @TataMotors at a valuation of $9.1 bn https://t.co/0kMX7bBkOF
— Ketan Thakkar (@ketanthakkarET) July 7, 2022
The total capital infusion for the EV Co. is envisaged to be approximately Rs. 8,000 crores / USD 1 billion between FY 24 and FY 27 for the planned product portfolio. M&M and BII will work jointly to bring other like-minded investors in the EV Co. to match the funding requirement in a phased manner.
BII’s investment is designed to significantly accelerate the availability and adoption of electric vehicles in India and other markets served by M&M. According to a recent survey by Roland Berger, a leading global automotive consulting company, Indian consumers are twice as likely as their counterparts in the UK and the US to consider the purchase of an EV. The investment alongside M&M in the new EV company supports BII’s undertaking that at least 30% of its total investments will be in climate finance.
The EV Co. will significantly leverage the broader manufacturing capabilities, product development, design organizations along with the ecosystem of suppliers, dealers, and financiers of M&M. The funds will be utilized primarily to create and market a world-class electric SUV portfolio with advanced technologies.
Mahindra XUV400 Debut In Sep 2022
Mr. Rajesh Jejurikar, Executive Director – Auto & Farm Sectors, Mahindra & Mahindra, commented: “Mahindra has very exciting plans to be a leader in the electric SUV space. We would share our vision that includes our comprehensive product, technology, and platform strategy at the UK event on 15 August 2022, followed by a reveal of the electric XUV 400 in September 2022. We would expect between 20% to 30% of Mahindra SUVs being electric by 2027”.
Mahindra XUV400 electric is based on the XUV300 currently on sale in India. It is derived from SsangYong Tivoli. Once launched, it will take on the Tata Nexon EV – which is the best selling electric car in India today. Claimed range is expected to be in the 300 kms region.
Mahindra Born Electric SUVs Debut On 15th Aug
At an event in the UK on 15th August 2022, Mahindra will reveal their all new Born Electric SUVs concept. Teasers of the same have already been floated on the internet. Going by recent teasers, it is apparent that all three electric SUVs will share quite a few styling highlights among each other. All three battery-powered SUVs will be based on a common design language which will include exterior highlights like C-shaped LED headlights and taillights, etc.
Previously, Mahindra even teased interiors of the cabin of an electric SUV. The teaser did not mention which specific model it belongs to which suggests that Mahindra could adopt a common design language for all three SUVs. It showcased a new wraparound design of the dashboard with a dual-tone theme of black and red. Red section of the dashboard extends from the centre console to the driver’s side door trim.
Like XUV700, it gets a twin-screen layout comprising an infotainment display and digital instrument cluster. Another interesting highlight is a hexagonal, two-spoke steering wheel and a massive panoramic sunroof. Cabin is further illuminated by blue ambient lighting. Overall, Mahindra has settled for a minimalist design for its cabin which looks clean.
