Mahindra & Mahindra Open To Invest In EV Battery Cell Manufacturers For Securing Supplies – CEO

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India’s Mahindra & Mahindra’s CEO stated that the company raised funds to purchase a battery-cell company in order to meet its future electrification requirements.

British International Investment has invested $250 million to finance the Mahindra. Mahindra is now exploring a partnership for such components as batteries and motors with Volkswagen AG.

Mahindra’s “short- to medium-term” battery needs will be met by the Volkswagen deal, but Mahindra CEO Anish Shah said that the company is open to considering an “investment with global leaders” in the battery space to ensure future supply.

Shah stated in an interview that “our intent is not manufacturing batteries”. Shah said that there are many people who can do it well. They can partner with us; we could become co-investors in some way. It doesn’t have to be ours.

Over the next few years, Mahindra will launch five electric sport-utility vehicles (SUVs). These models will contribute as much as 30% or approximately 200,000 units to Mahindra’s total SUV sales annually by March 2027.

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Automakers are looking for ways to have greater control over supply and cost. There is a growing demand for EVs, and disruptions in supply chains around the world. Some carmakers have spent billions of dollars to build factories and mines for batteries and motors, a drastic departure from the years when they relied only on suppliers.

Automobile manufacturers are also cautious about situations such as a pandemic shortage of semiconductors that could cause production to stoppages. Supply problems continue to cause order backlogs in many companies.

Shah stated that the majority of components used in EVs are similar to those found in combustion-engine cars. Mahindra also produced a large number of these parts in-house.

“If we can reach an agreement similar to the one we have with Volkswagen to ensure (battery supplies), that’s what will we do. He said that if there is an investment required to secure these supplies, then we will make it.

Mahindra’s plans are part of an Indian policy to reduce carbon emissions and take advantage of billions of dollars in incentives offered by the government.

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India’s EV market is dominated by Tata Motors. It only accounts for 1% of India’s annual sales, which amounts to about 3 million vehicles. This figure should rise to 30% by 2030, according to the government.

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