Mahindra & Mahindra Ltd (M&M) has not finalized plans for in-house electric battery cell production even as it gears up to launch its ‘Born Electric’ lineup of electric vehicles (EVs), according to Group CEO and Managing Director Anish Shah in an interview.
Shah was responding to reports that Mahindra Group is considering establishing a cell manufacturing plant in the country. The reports said that the company has shown interest in the second tender of the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme.
“Our approach to it is that it’s an adjacency for us and not a necessity. Therefore, we continue to evaluate if it is better for us to build or continue to buy,” Shah said.
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Shah said that M&M’s decision hinges on availability. If supply remains stable, there’s no immediate need to initiate internal production. However, should uncertainty arise regarding future supply, M&M would reconsider its stance. While M&M already offers the XUV400, an electrified variant of its XUV300 internal combustion-engine model, the company is ambitiously working on launching five to six indigenous electric vehicles in the upcoming quarters.
The recent partnership between Volkswagen Group and M&M solidifies this strategy, with a supply agreement covering components of Volkswagen’s MEB (modular electric drive matrix) for Mahindra’s purpose-built electric platform, INGLO. This deal includes the supply of specific electric components and unified cells, projected to have a total volume of approximately 50 GWh over its lifetime.
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Regarding the necessity of manufacturing battery cells in India to tailor the final product to suit the nation’s weather conditions, Shah emphasized that M&M’s products are designed for the Indian market and undergo extensive testing, including rigorous trials in various Indian conditions, ensuring that the vehicles are well-suited to local needs.
“Our cars will be designed in India for Indian conditions; with the cells we bring in and the batteries we customize. So, we are not really concerned about any of the issues on that front,” Shah said.
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