Mahindra and Mahindra revs up EV engine: Aims for 30% production shift by FY27

Mahindra and Mahindra (M&M), a leading Indian automaker, is making a significant push towards electric vehicles (EVs). The company plans to shift 30% of its overall auto production to EVs by financial year 2027 (FY27), according to group MD and CEO Anish Shah. This ambitious move is driven by both sustainability goals and the need to stay competitive in the rapidly growing EV market.

Five Electric SUV Models Coming Soon

Mahindra and Mahindra

M&M is already on track to launch a fleet of electric SUVs, with five models expected to hit the market by December 2024. These SUVs will cater to various segments and price points, making EVs more accessible to Indian consumers. Shah further revealed the company’s aspirations for the future, aiming to produce 50% of its vehicles as EVs by FY30 and reaching a milestone of one million EVs manufactured in India by the same year.

Facing the Tesla Challenge

The Indian EV market is heating up, with major players like Tesla and Maruti Suzuki entering the fray. Tesla’s potential entry in 2024 adds another layer of competition, but Shah remains confident about M&M’s position. He believes the company’s deep understanding of the Indian market, coupled with its established brand presence and experience in SUV manufacturing, will give it an edge over its rivals.

“I believe that we will beat all competitors, including Tesla,” Shah said in an interview at the World Economic Forum (WEF) in Davos. “We have done that with our current models as well and there have been numerous instances in the past where M&M was written off but we have had great success with models like the Thar, Scorpio, and Bolero… We have got Indian cars today that are the best in the world.”

Maruti Suzuki and Tata Motors in the Mix

mahindra-and-mahindra-showroom

Maruti Suzuki, India’s largest carmaker, has also announced plans to launch six EV models by 2030, marking a significant shift in its strategy. Meanwhile, Tata Motors currently dominates the Indian EV market with its popular Nexon EV.

The increasing competition is expected to benefit consumers with a wider range of choices and potentially lower prices. However, M&M’s focus on SUVs could give it a first-mover advantage in this rapidly growing segment of the EV market.

Beyond EVs: Mahindra Group’s AI Focus

The Mahindra Group, of which M&M is a part, is not just betting on EVs. The group’s IT arm, Tech Mahindra, is actively involved in research and development of artificial intelligence (AI). Shah revealed that Tech Mahindra is developing a unique AI search engine that aggregates results from various global engines while keeping data secure for Mahindra. This focus on AI highlights the group’s commitment to embracing cutting-edge technologies across its diverse businesses.

A Multi-Pronged Approach to Growth

M&M’s shift towards EVs and its investments in AI are part of a larger strategy to achieve 5X growth in the next five to seven years. The company has undergone a multi-year corporate clean-up exercise to streamline its operations and improve efficiency. With these initiatives in place, M&M is poised for a period of significant expansion and diversification.

Conclusion: Mahindra and Mahindra’s EV Push Signals a Transformative Shift

Mahindra and Mahindra’s bold move towards EVs marks a turning point for the Indian automaker. The company’s commitment to sustainability, coupled with its focus on innovation and market competitiveness, positions it well to capitalize on the burgeoning EV market. With a clear roadmap and a strong track record of success, M&M is set to play a leading role in shaping the future of mobility in India.

Also Read: Economic Perspectives at Davos 2024: India’s Political Landscape, AI Leadership, and Economic Growth

Key Takeaways:

  • Mahindra and Mahindra aims to shift 30% of its auto production to EVs by FY27.
  • Five electric SUV models are expected to be launched by December 2024.
  • The company has set a target of producing 50% EVs by FY30 and one million EVs by the same year.
  • Increasing competition from Tesla, Maruti Suzuki, and Tata Motors is expected to benefit consumers.
  • Mahindra Group is also focusing on AI development through its IT arm, Tech Mahindra.
  • The company’s overall strategy aims for 5X growth in the next five to seven years.

Mahindra and Mahindra’s ambitious EV plans showcase the company’s willingness to adapt and innovate in a rapidly changing automotive landscape. The success of this shift will not only benefit the company but also contribute to India’s transition to an electric and greener future.

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