Business India ×
 Climate Change

Mobility
Published on: July 13, 2022, 11:40 a.m.
Mahindra to invest in EV battery firm
  • M&M is exploring a partnership with Volkswagen AG to source EV components such as batteries and motors

By Business India Editorial

Mahindra & Mahindra could consider investing in a battery-cell company to meet future electrification needs, its CEO said, after the company raised funds for its new electric vehicle (EV) unit at a $9.1 billion valuation.

Mahindra last week raised $250 million from British International Investment for the unit and is exploring a partnership with Volkswagen AG to source such EV components as batteries and motors.

While the Volkswagen deal would meet Mahindra's ‘short to medium term’ battery needs, Mahindra CEO Anish Shah said the company was open to looking at some sort of ‘investment with a global leader’ in the battery-cell space if it needed to secure future supplies.

“Our intent is not to get into (manufacturing) batteries,” Shah said in an interview. “There are people who do it very well. We can partner with them; we could be a co-investor in some form. We don't need to own it and run it.”

Mahindra plans to launch five electric sport-utility vehicles (SUVs) over the next few years. These models are expected to contribute up to 30 per cent, or about 200,000 units, of its total annual SUV sales by March 2027.

Growing demand for EVs and disruption of supply chains across the globe are pushing automakers to look at ways of having greater control over supplies and costs. Some carmakers are spending billions of dollars on mines and factories for motors and batteries — a departure from years of relying solely on suppliers.

Automakers are also wary of situations like the semiconductor shortage that led to production stoppages. Many companies still face order backlogs because of supply problems.

Shah said that, except for batteries and motors, most of components for EVs were not very different from those of combustion-engine cars and Mahindra produced a majority of those parts in-house.

“If we can get an agreement like we have with Volkswagen to secure (battery) supplies, that's what we will do. If there's some investment we need to make to secure those supplies, we will do that,” he said.

Mahindra's plans come as Indian companies seek to capitalise on billions of dollars worth of incentives being offered by the government to build EVs, part of a policy to meet national climate change and carbon reduction goals.

India's EV market represents only 1 per cent of the country's annual sales of about 3 million vehicles. The government wants this to grow to 30 per cent by 2030.


Company Feature

The financial woes are behind us, says the company

Winds of relief for Suzlon

Published on Aug. 17, 2022, 11:34 a.m.

The financial woes are behind us, says the company

Diseases

Climate change makes diseases worse, warns a study

Scary days ahead

Published on Aug. 17, 2022, 11:12 a.m.

Climate change makes diseases worse, warns a study

Pollution

Rainwater is not safe to drink, warn scientists

How safe is our rainwater

Published on Aug. 17, 2022, 10:44 a.m.

Rainwater is not safe to drink, warn scientists

E-vehicles

Ola’s car will be the sportiest car ever built in India

Ola to launch four-wheeler EV in 2024

Published on Aug. 17, 2022, 10:25 a.m.

Ola’s car will be the sportiest car ever built in India

E-MAGAZINE

Company Feature

Classrooms go live, thanks to Airtel

Published on April 5, 2022, 11:25 a.m.

Despite the pandemic, Bharti Foundation has ensured that children are not deprived of learning opportunities

Column

Collaborative excellence

Published on April 4, 2022, 8:53 p.m.

A policy perspective for meeting SDG-9 in low resource setting of developing economies

Column

Innovation and infrastructure

Published on April 4, 2022, 8:10 p.m.

India is well-positioned to become a model of corporate sustainability

Column

‘More for less’

Published on April 1, 2022, 10:12 p.m.

The merger of technology and SDGs – A game-changing win of the era