The Board of Directors of Mahindra and Mahindra Limited has granted an in-principle approval for the consolidation of Mahindra Electric Mobility into Mahindra and Mahindra.
The consolidation of the step-down subsidiary will aim at categorising EV operations into two distinct verticals – Last Mile Mobility and Electric Vehicle Tech Centre.
In a statement, Mahindra and Mahindra said that the new structure will help making improvement through innovation, execution and excellence. "Additionally, it will unlock shareholder value," the statement said.
Rajesh Jejurikar, the executive director, Mahindra & Mahindra Limited, said, “Electric vehicles will be the future of the automotive business. To be future-ready, we believe that EV should be part of the core and mainstream business."
The consolidation will allow the LMM vertical to gain complete ownership of the value chain for last-mile mobility solutions. This will help drive growth and execution.
The EV Tech centre on the other hand will receive the resources and energy from M&M’s product development capabilities in the Mahindra Research Valley.
The intent to consolidate is part of the EV strategy, Jejurikar said adding that it will help various segments that popularies e-mobility. "We will continue to draw upon our deep understanding of customer needs to bring in exciting new products in the EV space," he said.
The electric mobility sector has been gaining popularity and momentum due to climate change and increasing fuel rates. Currently there are over 32,000 Mahindra electric vehicles plying Indian roads and have covered over 270 million km.
