Mahindra Looking For Partners To Invest $100 Million Into EV Business

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  • KUV100 would be finally launched this quarter, making its the fourth launch, after Hyundai Kona, MG ZS EV, Tata Nexon EV in the electric SUV space 
  • M&M MD Pawan Goenka says the company is in talks with multiple suitors
  • M&M has also invested in development of the next-generation EV platform MESMA 350

According to a report, Mahindra and Mahindra are in talks with suitors to strike a partnership deal in its unlisted subsidiary Mahindra Electric Mobility. The subsidiary is one of the biggest producers of fully electric vehicles in the country.

Few companies have already completed the due diligence process to buy a stake, a move that will help parent M&M achieve its goal of getting $100 million ( Rs 750 crore ) for product development. 

Mahindra Electric Mobility makes battery electric passenger three-wheelers, a four-wheeled electric van and an electric sedan. After the announcement of the company’s June quarter results, Pawan Goenka, MD, Mahindra and Mahindra, said “As we look at the next 3-4 years of our product development plan, there is approximately about $100 million worth of investment that will happen (in Mahindra Electric Mobility) and we are hoping that all of that has been generated from outside sources. We are in talks with multiple people right now and some of them have already gone through the due diligence phase.”

Substantial size of electric vehicles 

During FY20, M&M ( which has its own electric vehicle division ) and Mahindra Electric Mobility clocked sales of 14,602 units (966 four-wheelers and 13,636 units of three-wheelers), recording 42 percent growth over the 10,276 units ( 1,811 four-wheelers and 13,636 units of three-wheelers) sold in FY19. Goenka also added that by the time, the Corporate Average Fuel Economy norms would be introduced in India in 2022, M&M will have a ‘substantial size’ of electric vehicles in its portfolio.

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The much delayed battery electric version of the KUV100 would be finally launched this quarter, making its the fourth launch ( after Hyundai Kona, MG ZS EV, Tata Nexon EV ) in the electric SUV space. The electric version of the XUV300 will be launched in the next few quarters. 

Next generation EV Platform 

With the help of its subsidiary Mahindra Electric Mobility, M&M has invested in development of the next-generation EV platform MESMA 350. The Mahindra Electric Scalable and Modular Architecture 350 is a 350 volt powertrain that would be supporting motor sizes ranging from 60kW to 280kW, dual motor concepts and battery sizes up to 80kWh.

It has also been reported that the company is sharpening its focus by getting rid of laggards. M&M has stopped investment in Korean subsidiary SsangYong, shut down electric two-wheeler business Genze in the US, and aborted a capital intensive bid for the US Postal Service in order to conserve cash and get out of loss making ventures. 

With the electric mobility, space is one of the centrepieces of M&M’s game plan, Mahindra Electruc Mobility (MEML) is still a loss making company. As of FY20, MEML had clocked a loss of Rs 55 crore.

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