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16 NOVEMBER 2018 AL CIRCLE

Mahindra Electric to invest INR 1000 crore in EV components expansion

EDITED BY : BEETHIKA BISWAS 2MINS READ

Leveraging on the potential growth of electric vehicles, Mahindra Electric, part of Mahindra & Mahindra group has announced an investment of INR 1000 crore for the development of new products, technology and capacity expansion, a senior company executive said while inaugurating its new technology and manufacturing hub in Bangalore. Mahindra Electric Mobility Limited, formerly known as the Reva Electric Car Company, is an  automobile company based in Bangalore, involved in designing and manufacturing of compact electric vehicles.

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The new facility will manufacture battery systems, power train, control units and power electronics for electric vehicles.  The company plans to expand its total production capacity to 70,000 units by 2020 from current 24,000 units. A senior company official said Mahindra Electric is likely to see two to three-fold jump in volumes to produce 10,000 to 12,000 units of three and four wheelers per annum this financial year. 

Out of the total investment, INR 400 crore has already been invested in product technology. Now, Rs 100 crore will be invested in developing new technology hub. The company will invest another INR 500 crore in next five months to build capacity and upgrade technology for electric mobility.

While launching its new three-wheeler EV and inaugurating the expansion of Bengaluru plant, Pawan Goenka, MD of Mahindra & Mahindra told ET that M&M betted on EVs when people were not even aware of it in India. 

 

“The Government of India is very keen on pushing electrification for commercial application and we have aligned our plans accordingly. We think, an electric threewheeler offers the best business case,” added Goenka. This could be a good news for the part makers and auto OEMs in India and also the metal supplier to these companies. 

It is noteworthy that Mahindra launched a range of EVs including  e-KUV100, an electric version of its compact SUV, the e2o NXT, a drivetrain named MESMA and its first electric bus called e-COSMO at the Auto Expo 2018. 

 

 


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