Mahindra & Mahindra has entered talks with several state governments in India to set up production infrastructure for its upcoming range of electric SUVs, according to a top company official.
The automaker, which has lined up five new electric SUVs (SUVs), the first four of which are expected to hit the road between December 2024 and 2026, will evaluate incentives from several state governments before finalizing its strategy for producing these EVs.
“One of the criteria for making that decision (electric vehicle production) is the kind of subsidies we can get from the state governments. So we’re waiting to go through that process and keep two to three options open before we solidify our manufacturing strategy.” , said M&M Executive Director – Auto and Farm Sectors – Rajesh Jejurikar in an interaction here.
The company has already started talks with a few state governments about production of the new electric SUV range, he said without naming the states.
The automaker is rolling out its conventional ICE (Internal Combustion Engine) vehicles from factories in several states, including Maharashtra and Tamil Nadu.
When asked whether M&M would go for production at its existing passenger car production plants or look for a new electric SUV plant, he said: “We are open to multiple options. I am not saying that subsidy will be the only criterion, but it is certainly a criterion in deciding to live up to.”
He went on to say: “We are not concerned whether it will be common with ICE vehicles or not, but we would certainly put one filter of the subsidies we get for investment into the decision-making process.”
However, M&M would prefer a state that already has a turnkey car manufacturing infrastructure, added Mr Jejurikar.
“It has to be in an auto hub. So obviously we’re not going to a state where there’s no auto ecosystem. We now have enough states with such ecosystems that focus on attracting EV investment. We’ll evaluate those three -four different options,” he explained.
The automaker plans to introduce the five electric SUVs under two brands: XUV and the all-new electric brand ‘BE’.
Legacy brands will be under the XUV brand, while the new electric models will roll out under the BE line.
Mahindra is currently not present in the electric passenger car segment. However, it is the leading player in household electric tricycles with a market share of more than 70 percent.
When asked about the company’s plans regarding the export of electric SUVs, Mr. Jejurikar said: “We have not yet decided on the markets, but we have started looking at all the legal requirements and expectations in this regard, so that’s being worked on now.” He noted that the company is in the process of ramping up production capacity to serve both the domestic and international markets.
“Two years later, if we have not learned from the past two years, we must be held accountable for not being a good learning organization. set domestic and export,” he said.
A shortage of chips and strong demand for M&M’s new models, such as the XUV700 and Scorpio-N, have resulted in long-term orders for Mahindra reaching up to nearly two years.
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