M&M is gearing up to introduce electric light commercial vehicles (e-LCVs), pending the release of details for the FAME III scheme. The company is transitioning to LFP battery chemistry due to cuts in subsidies, focusing on the e-commerce and delivery sectors.
Having secured a dominant position in the small commercial vehicle market with its pick-up trucks, Mahindra & Mahindra is now poised to compete with Tata Motors in the mini electric truck category. The company, known for its Supro and Jeeto models, is preparing to launch its electric mini truck in the coming months, as disclosed by senior management during the Q1 earnings press conference.
The launch of their electric light commercial vehicles (E-LCVs) lineup is contingent on further details from the government concerning the upcoming Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME III) scheme.
Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector) of Mahindra & Mahindra, mentioned that the firm had prepared several models within the sub-2-tonne category poised for release. He explained that they have several options prepared and are planning to initiate a launch as soon as they receive clear guidelines on the upcoming FAME scheme. Since the current scheme excludes four-wheelers, they are closely watching what FAME III will include before finalizing their launch strategy.
Jejurikar highlighted that the overall cost of owning e-LCVs is comparatively favourable against internal combustion engine (ICE) alternatives, emphasizing that e-LCVs are vital for facilitating mass rapid transportation and advancing the decarbonization of the economy.
The current Electric Mobility Promotion Scheme (EMPS) offers demand incentives only for electric two- and three-wheelers, excluding light electric trucks, which were also overlooked in previous FAME initiatives.
Mahindra’s upcoming E-LCV range is aimed at capturing shares in the burgeoning e-commerce and on-demand delivery service markets. With subsidies being reduced from Rs 15,000 per kWh to Rs 5,000 per kWh under the present EMPS, Mahindra has transitioned from using NMC battery chemistry to LFP, which offers greater affordability and energy density, as indicated by Jejurikar.
