In order to market premium electric SUVs, Mahindra has announced the establishment of a new EV subsidiary.
Mahindra could be regarded as India’s first significant OEM to make a foray into the electric vehicle market. After acquiring Reva, they established Mahindra Electric and released vehicles like the e2O and e2O Plus. Additionally, these were introduced in foreign markets. But sales fell short of projections. These were soon dropped from the market.
In 2022, Tata Motors will be the top producer of electric vehicles in India. Their Nexon EV is a big success. In the market for passenger electric vehicles, Mahindra is completely absent. But that will soon change.
New Mahindra EV Company
A new EV subsidiary has been formed, according to Mahindra. For the international market, this new Mahindra EV company will introduce electric four-wheel cars. Mahindra has already received funding for the same from British International Investment of Rs. 1,925 crore (BII).
Mahindra & Mahindra (M&M) and BII (formerly CDC Group), the UK’s Development Finance Institution and impact investor, have signed a legally binding agreement to invest up to Rs. 1,925 crores each into a newly created fully owned subsidiary of M&M called “EV Co.” At a value of up to Rs. 70,070 crores, BII will invest up to Rs. 1,925 crores in the form of mandatory convertible instruments, giving it a 2.75 percent to 4.76 percent stake in the EV Co. The EV Co. will concentrate on electric passenger cars with four wheels (4W).
Between FY 24 and FY 27, the EV Co. is expected to receive a total capital infusion of around Rs. 8,000 crores/USD 1 billion for the projected product portfolio. M&M and BII will collaborate to find more like-minded investors for the EV Co. in order to gradually meet the finance requirement.
The investment from BII is intended to hasten the availability and uptake of electric vehicles in India and other regions that M&M serves. A recent survey by Roland Berger, a renowned international automotive consulting firm, found that Indian customers are twice as likely to consider buying an EV than their counterparts in the UK and the US. The commitment made by BII that at least 30% of its overall investments will be in climate financing is supported by the investment made in the new EV company in partnership with M&M.
The EV Co. will heavily leverage M&M’s ecosystem of suppliers, dealers, and financiers as well as its larger manufacturing skills, product development, and design divisions. The money will be used largely to develop and market a line of premium electric SUVs equipped with cutting-edge technologies.
Despite trailing @TataMotors in the EV race, Interestingly, @MahindraRise has raised $250 million in its EV subsidiary at the same valuation of $9.1 billion as the maker of Nexon and Harrier. @tpg invested $1 billion 11-15% in @TataMotors at a valuation of $9.1 bn https://t.co/0kMX7bBkOF
— Ketan Thakkar (@ketan_auto) July 7, 2022
Mahindra XUV400 Debut In Sep 2022
The executive director of Mahindra & Mahindra’s auto and farm sectors, Mr. Rajesh Jejurikar, stated: “Mahindra has extremely exciting aspirations to be a pioneer in the electric SUV industry. At the UK event on August 15, 2022, we would present our vision, which also included a detailed product, technology, and platform strategy. In September 2022, the electric XUV 400 would then be unveiled. By 2027, we anticipate that 20 to 30 percent of Mahindra SUVs would be electrified.
Based on the XUV300 already offered in India, the Mahindra XUV400 electric was created. It is an offshoot of the SsangYong Tivoli. When it is released, it will compete with the Tata Nexon EV, the best-selling electric vehicle in India at the moment. Expected claimed range to be in the 300 km range.
Mahindra Born Electric SUVs Debut On 15th Aug
On August 15, 2022, Mahindra will unveil their brand-new Born Electric SUV concept at a gathering in the UK. The same has already been the subject of online teasers. Recent teases have made it clear that all three electric SUVs will have a lot in common in terms of appearance. The aesthetic features of the three battery-powered SUVs will include C-shaped LED headlights and taillights, among other outward design cues.
Mahindra has already teased interiors of an electric SUV’s cabin. The fact that the teaser made no mention of the exact model to which it belongs raises the possibility that Mahindra may use a similar design aesthetic for all three SUVs. It displayed a brand-new wraparound dashboard design with a dual-tone red and black colour scheme. The centre console and the driver’s side door trim are separated by a red strip of the dashboard.
It features a twin-screen configuration with a digital instrument cluster and infotainment display, similar to the XUV700. A steering wheel with two hexagonal spokes and a sizable panoramic sunroof are two other intriguing features. Blue ambient lighting illuminates the cabin even more. Overall, Mahindra has chosen a clean, minimalistic style for its cabin.