Indian automaker Mahindra & Mahindra (M&M) has revealed plans to develop its Last Mile Mobility Electric Vehicle production facility as part of its expansion efforts in its existing Zaheerabad plant in Medak District.
Purpose
The Telangana Government signed a memorandum of understanding (MoU) with M&M on February 9 for the proposed expansion plans. The automaker intends to produce three-wheeler EVs for passenger travel and cargo four-wheelers for its Last Mile Mobility business unit.
“We have aggressive growth plans in this segment as electric three-wheelers and four-wheelers (cargo) is growing at a much faster rate than the electric passenger vehicle segment.”
Rajesh Jejurikar, M&M’s executive director, auto and farm sector
Currently, M&M’s electric three-wheeler passenger lineup includes the Treo, Treo Yaari, and e Alfa Mini. Meanwhile, its three-wheeler cargos include the Treo Zor, Zor Grand, and E Alfa Cargo.
Investment
The automaker, or any of its group companies, is expected to invest about Rs.1,000 crores for an 8-year period. Remarkably, it is set to be included in the Mega Projects category under the Telangana Government EV Investment Policy.
Apart from that, M&M is also expected to allocate Rs 10,000 crore in Pune for its planned electric SUV production plant.
The automaker is indeed becoming aggressive in its electrification efforts. The Telegraph Online reported that M&M aims for its electric SUV to sell 20%-30% of the company’s overall SUV sales by 2027. Furthermore, it also believes that there is a growth prospect in the electric three-wheeler segment.
“Electrification in the last mile mobility sector has really caught on. It is happening by word of mouth. And we believe this segment has great growth capacity. Passenger vehicle electrification stands at just 1-2 per cent of the industry and it is at a very nascent stage but three-wheeler electrification is more than 50 per cent.”
MD and CEO, M&M Ltd., Anish Shah
