M&M to diversify electric vehicle portfolio
MUMBAI: Mahindra and Mahindra Ltd will have electric versions of all its existing and planned crossover sport utility vehicles (SUVs), MD Pawan Goenka said on Tuesday. Mahindra’s current line-up of these cars includes the XUV500 and the KUV1OO. Another compact SUV—code-named S201— will be added next year.
“All our cross-over SUVs will have electric versions,” Goenka told reporters on the sidelines of the launch of a refreshed version of the KUV1OO. Mahindra will launch the electric version of the KUV in 2018, said Goenka.
As the only commercial electric vehicle (EV) maker in India, Mahindra is looking to capitalise on its first-mover advantage by diversifying its EV portfolio, which comprises two hatchbacks, the e2o and e2o Plus, a sedan, the eVERITO, the eSupro van and a three-wheeler, the e-Alfa Mini. The company wants to be present in India’s overall EV space and even take on orders such as the government’s tender for 10,000 EVs, on which the company “will not make money”, Goenka said last week.
Mahindra will participate in the government tender for electric buses as well, said Goenka.
About ₹500 crore has already been invested in the company’s EV arm over the past five years, with ₹600 crore more lined up over the next two to three years, Goenka added.
“This investment will be used to expand capacity to 5,000 units from the present 500, localise 85% of component production and invest in technology,” he added.
Over the next three to five years, the company will ramp up production of its e-Alfa Mini and also focus on mass urban mobility solutions with the launch of a 32-seater bus.
Meanwhile, Mahindra has been working towards increasing the mix of petrol models in its overall portfolio and reduce dependence on diesel vehicles owing to a sharp shift in consumer preference for the former. This trend held even for the KUV100, which was launched in January 2016. More than half the 60,000 units sold so far were of the petrol variant, said Goenka. “Our petrol offerings may even be stronger than our diesel portfolio by the time the BS VI emission norms come in 2020.”
“Mahindra’s pro-active approach to shift to electric UV will help them,” said Puneet Gupta, associate director at IHS Markit, a sales forecast and market research firm. EVs attract 12% GST as compared to 28% for petrol and diesel vehicles.