Mahindra will explore sourcing more components from other companies to boost its EV portfolio.
India’s Mahindra & Mahindra will be sourcing more components from other companies to boost its electric vehicle (EV) portfolio, its chief executive told Reuters.
Anish Shah says Mahindra Over time the focus was on developing in-house EV components, but has now changed its strategy to forge partnerships to achieve rapid growth in this segment.
Mahindra & Mahindra CEO Anish Shah
Mahindra signed a partnership agreement with Volkswagen last week In which it will explore equipping its electric cars with motors, battery system components and cells made by the German automaker.
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“The world is moving towards a lot more partnerships. Instead of doing everything yourself, it is better to source the best,” Shah said in an interview at the World Economic Forum summit in Davos.
“It is VW (Volkswagen) at this stage and as we see similar strength in other areas, we are open to seeing the different components that we will bring, and we are very good at in-house as well,” he added.
While Mahindra is betting big on growing its EV portfolio, it will face stiff competition from India’s Tata Motors in a country where the clean mobility sector is growing rapidly.
Prime Minister Narendra Modi is offering billions of dollars in incentives to companies to make EVs, as India seeks to meet its climate change and carbon reduction targets.
India’s EV market represents only 1% of the country’s annual sales of about 3 million vehicles, with consumers still opting for fuel-consuming cars that are far more affordable.
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Bye India dominates the EV market and last year raised $1 billion for the business from TPG. MG Motor India, owned by China’s SAIC Motor, also plans to raise funds to develop its EV business.
Shah said Mahindra will use “significant funds” for EVs and make them available, adding “we will always be open to opportunities for creation”.
Mahindra has developed a portfolio of EV commercial vehicles in India, but the latest push is focused on passenger cars and sports utility vehicles (SUVs) in particular.
“Our strike zone has been authentic SUVs, that’s where we are going to stay… We are not going to make EV sedans, no hatchbacks,” Shah said.
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