The merger would categorise EV operations into two verticals: last-mile mobility (LMM) and electric vehicle tech centre
Mahindra & Mahindra (M&M) is set to merge its step-down arm Mahindra Electric Mobility Ltd with itself as it receives in-principle approval from its board, it said in a recent statement.
According to M&M, the growth in the EV sector in India has picked up pace in recent years and is only going to grow further. Keeping this in mind, M&M said, “this realignment will help in providing the requisite resources as well as the direction to realising targeted growth”.
The merger would categorise EV operations into two verticals: last-mile mobility (LMM) and electric vehicle tech centre. This simplification would help in driving improvements through innovation, execution excellence, efficiencies and economies of scale, as per the company.
Future of the automotive business
M&M Executive Director Rajesh Jejurikar said, “Electric vehicles will be the future of the automotive business. To be future-ready, we believe that EVs should be part of the core and mainstream business.”
Furthermore, the consolidation comes as the company strategises to electrify other segments intended to popularise e-mobility, stated Jejurikar.
The company further said that it is keeping a focused eye on the entire EV ecosystem, including last-mile connectivity, fleet mobility, personal mobility and R&D which will accelerate growth through technology and innovation.