M&M approves Rs 10,000-crore outlay to boost EV manufacturing goal

“The government’s focus on ‘ease-of-doing-business’ and progressive policies, together with Mahindra’s investment, will act as a catalyst for Maharashtra to become India’s EV hub, attracting further Indian and Foreign Direct Investment (FDI),” Jejurikar added.

Founded in 1945, M&M employs 260,000 across 100 countries and is the world’s largest tractor company by volume.

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In September, sources told Reuters that M&M is in talks with global investors to raise between $250 million and $500 million to accelerate its plans to build EVs. "Mahindra is in early talks with global green funds and private equity firms," the person said, adding that it wants a long-term investor who can help build out its EV business.

"Mahindra wants to bring a benchmark investor on board but does not want to dilute a large stake at present," he said, adding that these plans are at an early stage and subject to changes.

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The report came weeks after Mahindra outlined an ambitious plan to launch five electric SUVs over the next few years and is targeting such models to make up 30 percent of its total annual SUV sales by March 2027.

Mahindra has partnered with Germany's Volkswagen to procure components like electric drivetrains and batteries for its electric SUVs, and the two are exploring joint vehicle projects, building battery cells locally and developing charging solutions. The automaker has said it is open to making some investments in a battery cell maker to secure future supplies, and is also evaluating the need to set up manufacturing capacity for EVs.

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At the start of the year, not much was known of Mahindra’s EV plans, except that the brand intended to continue sticking to its SUV speciality even in the EV space and that it has 16 EV models earmarked for release by 2027. Out of these the XUV400 was announced in September 2022.

Notably, despite its early entry in the space with the now discontinued e2o and the e-Verito models, M&M has been noticeably absent as rivals such as Tata Motors gain a lead. However, with a readymade modular EV platform at its disposal, Mahindra could still level the playing field fairly soon despite its delayed arrival in the lithium-ion EV space.