Mahindra Electric, which is currently playing catch-up in the personal electric mobility industry, is seeking to get ahead in the last-mile transportation segment. Due to high demand, the firm intends to double up its manufacturing capacity and is in the process of extending its product line, which will include the addition of almost 6 new vehicles, including electric three and four-wheelers.
According to sources, the firm is planning to invest 10% of its total EV expenditure, which accounts for Rs 300 crore, in its last-mile mobility business.
The business is expected to end FY22 with volumes of 14,000 to 15,000 EVs, which may potentially double in FY23 if semiconductor issues do not worsen.
Sources believe M&M could possibly make and sell roughly 1 lakh three-wheeler EVs yearly by 2024-2025, with its Bengaluru facility’s manufacturing capacity reaching to produce about 30,000 units. The firm is already preparing its vendor base suitably.
Suman Mishra, CEO of Mahindra Electric Mobility said, “We are seeing very significant demand, and we intend to exceed all year-to-date sales in the next quarter alone. We are experiencing a strong tailwind, and we anticipate considerable growth in scale, size, and sector.”
With Mishra anticipating that the three-wheeler market will acquire an earlier high (5-6 lakh units) in the next three years, EV electric vehicle penetration will reach 30% of total three-wheeler sales in the subsequent 3 to 5 years.
Mahindra’s last-mile mobility segment has already sold around 7,000 electric cars this fiscal year and, according to the company’s suppliers, the objective is to double the amounts in the coming year.
Mishra, on the other hand, is hesitant to commit to either investments, volumes, or new units. “We don’t reveal precise statistics, but suffice it to say they’re expanding and demand is high,” she continued, the firm is seeing interest in both last-mile personal and commercial transportation.
Having established a dominant position in the electric three-wheeler industry, the firm intends to provide a variety of swappable battery options following its relationship with Jio-BP, in which the company intends to use a cluster-based strategy. This will provide appropriate charging infrastructure and optimal fleet use, further accelerating the three-wheeler EV business.
Mahindra Electric is now evaluating dozens of hotspots around the country, said sources, where it would sell its Electric three-wheelers for both personal and commercial transport.
