Mahindra Group seeks global partners for local battery cell production to meet rising electric vehicle demand and plans to list Mahindra Electric Automobile Ltd and introduce 23 new vehicles by 2030.
Mahindra Group is actively pursuing partnerships with global players to establish local battery cell production in India in anticipation of the future burgeoning demand for electric vehicles (EVs). The move is part of Mahindra’s strategic vision to enhance its footprint in the EV sector and contribute to India’s sustainable mobility goals.
The company intends to list its electric vehicle arm, Mahindra Electric Automobile Ltd (MEAL), by 2030. This decision aligns with Mahindra’s ambitious plans to introduce 23 new vehicles by the same year, including seven battery electric vehicles (BEVs).
Looking ahead, Mahindra Group has earmarked ₹37,000 crore over the next three years, with a substantial portion allocated to the automotive sector. This investment will support introducing 23 new vehicles by 2030, including a mix of internal combustion engine SUVs, battery electric vehicles, and light commercial vehicles.
Mahindra Group MD and CEO Anish Shah affirmed when discussing the potential location of the battery cell production facility that the only reason for us to do it is to indigenize in India. Therefore, it will be in India if we go down that path.
He pointed out that the electric vehicle segment requires time to gain momentum and consumer acceptance, projecting a more realistic timeframe around 2030 for the listing.
Mahindra Group’s commitment to electrification extends beyond manufacturing alone. Shah underscored EVs’ attractiveness to consumers, noting that launching new electric vehicle models starting in January 2025 will play a crucial role.
Despite the optimism surrounding electric vehicles, Shah acknowledged several challenges hindering the segment’s growth. He cited range anxiety and the high initial cost of EVs as significant barriers to address. Additionally, Shah emphasised the urgent need for expanding EV charging infrastructure in India, pointing out the stark disparity in the number of chargers compared to countries like the US and China.
Shah highlighted, stressing the imperative need for accelerated infrastructure development, that the country has something like 27,000 chargers today. The US has around 1.76 lakh chargers, and China will have many multiples.
Financial accessibility is another critical area of focus for Mahindra when promoting EV adoption. Shah outlined plans to gradually transition their vehicle portfolio to 20-30% electric by 2027, contingent upon the growth of charging infrastructure and consumer uptake.
Reflecting on the broader transition from internal combustion engines (ICE) to electric powertrains, Shah articulated the environmental benefits driving this shift. He underscored that reducing fuel imports and improving environmental cleanliness are compelling reasons for governments worldwide to promote EV adoption.
