The Mahindra Group is actively considering partnership with global majors for setup of local production facilities in respect of battery cells as it is anticipating demand for electric vehicles to boom in the years ahead, a senior company executive has said.
In an interview, Mahindra Group MD and CEO Anish Shah gave an indication that its electric vehicle arm, Mahindra Electric Automobile Ltd, could be listed in the market around 2030. He also stated that the company is looking to get into cell manufacturing and joins hands with other companies for the same.
"We will look to tie up with a global technology partner and explore the possibility of working with private equity firms, too, as this is a very capital-intensive activity," Shah said. He also pointed out strategic significance of making such battery cells in India if it were to go ahead with plans.
Shah made it clear that any plan for a manufacturing facility for battery cells would be sited in India, as part of Mahindra's plan of developing indigenous capabilities.
On the timeline for the listing of MEAL, Shah said it is not likely in the next three to five years, considering the gradual pickup he sees in the electric vehicle segment.
"The electric vehicle segment takes time to build up," said Shah. "We see that happening around the 2030 level."
Shah was, otherwise, confident about India's ability to adopt new automotive technologies in quick time, given the possibility of leapfrogging, much like previous advancements.
He focused on consumer appeal regarding electric vehicle offerings besides pointing out that new models to be launched from January 2025 would be critical in that direction. Shah mentioned range anxiety and high electric vehicle costs as two challenges constraining growth in the segment. Regarding EV charging infrastructure development, he said it was immediately required in India, considering 27,000 chargers were minuscule compared to global benchmarks.
"As electric vehicle demand gains momentum, the scaling up of infrastructure for EV charging assumes importance," Shah said. He also pointed out that financing options for EVs are another area that needs to be focused on critically.
The Mahindra Group will invest Rs 37,000 crore over the next three years across business verticals. A major part of this investment will be in the automotive business for launching 23 new products. "This will include nine ICE SUVs, seven BEVs and seven LCVs by 2030," he said.
On hybrid models, Shah said Mahindra can launch the technology at short notice depending on the market demand.
Shah on incentives for hybrids said, "Government incentives need to have clear goals either to reduce fuel imports or some environmental benefits. That is why governments across the world incentivize EVs."
He further elaborated that "hybrids are generally more expensive than pure ICE or EVs due to this twin powertrain setup and do not yield great environmental gain over an electric vehicle, so why incentivize hybrids?".
Talking about diesel powertrains, Shah affirmed Mahindra's readiness to give the markets what these would desire - be these diesels, petrol, or hybrid options, even though hybrids would be pricier.
"Our belief is that over time, as ecosystem challenges get resolved, consumers will increasingly move to electric models that will give them better value," Shah said.
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