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Mahindra and Mahindra are planning to boost their electric vehicle portfolio by partnering with more component companies. Chief Executive Officer of the company, Anish Shah said that Mahindra was earlier planning to develop EV components in house. But now the company wants to achieve faster growth and partner with other companies.
Last week, the company signed an agreement with Volkswagen for exploring equipment like battery systems, cells, and motors for its electric cars.
“The world is moving towards a lot more partnerships. It’s better to source the best that’s out there, rather than do everything ourselves,” Shah said in an interview.
“It’s VW (Volkswagen) at this stage and as we see similar strengths in other areas, we are open to looking at various components that we would bring in, and do what we are very good at in-house as well,” he added.
As of now, only 1% of the total annual sales in India are represented by electric vehicles. Tata Motors dominates the EV market in India and it raised $1 billion from TPG.
“We always will be open to value creation opportunities. Our strike zone has been authentic SUVs, that’s where we are going to stay … we are not going to make EV sedans, no hatchbacks,” Shah said.
Mahindra has a good portfolio of commercial electric vehicles in India. But this new push is more inclined toward passenger cars such as sports utility vehicles (SUVs).