Mahindra may supply parts to EV makers through electric mobility arm
the third business,” he said, adding the electric cab services business is likely to be named Mahindra Mobility Services.
As the momentum in favour of vehicles running on green technologies such as electricity gathers pace, the traditional business models of the automotive industry are expected to change.
Mint on January 17 reported that India’s largest carmaker Maruti Suzuki
India Ltd is looking for lithium suppliers for a battery plant in Gujarat, planning to build a brand new electric car for India and working with its dealers to set up vehicle charging networks as part of its initiative to build an electric car business portfolio.
The government has been categorical about promoting electric vehicles and has substantially increased taxes on mild, full and plug-in hybrid vehicles. The government has stated its intent to move to an all-electric fleet by 2030.
“Our main objective is to sell more and more electric vehicles,” Goenka said.
Mahindra’s mobility service business will not be similar to that of cab-hailing services run by Ola (owned by ANI Technologies) and Uber Inc.
“That is not something Mahindra would get in, as that is the business that requires 8-10 years gestation before you start seeing financial returns,” Goenka said.
“When you are looking at fleet operations, it is best to continue to work with service providers or we should also become a service provider. Right now, we have not ruled it out. We have not made a decision. But, we obviously are not going to be captive... in a sense that electric vehicles may not just be used by a Mahindra service provider company. We need to be potentially catering to all service providers in this field,” he explained.
The aim is to demonstrate that it is a good business to get into, something like what Lithium, run by Bengalurubased Urban Technologies, does, Goenka said.
Lithium procures Mahindra’s electric cars and caters to the mobility needs of corporate customers. Goenka’s confidence in the mobility service as a business stems from his company’s pilot projects which have been running in a few cities, including Nagpur.