Mahindra & Mahindra has announced yesterday that the company will be pouring in fresh investment of Rs 900 Cr in the Electric Vehicles over a period of next 4 years; Rs 400 Cr out of this amount will be invested in Karnataka state and the rest Rs 500 Cr will be invested in the state of Maharashtra.
This decision has come as a move to ramp up M&M’s production capacity, technology and its products in the EV industry. M&M’s Managing Director, Mr. Pawan Goenka said that M&M has already invested Rs 600 Cr in the past 5-6 years, which has resulted in a good output of EVs. But in order to further amp up the company’s readiness for EVs in India, it needs to invest more.
The automaker is of the view that in order to capture the EV market quickly, one has to create its own path, rather than just to wait and watch the market’s reaction to EVs. The company is expecting a production capacity of 5,000 units post this investment over the next 4-5 years which will give it a upper hand over the other automakers. Also, M&M is expecting that once the sales volumes of EVs touch a critical point of 2 lakh units a month, mostly by 2022, it will be on an equal footing with the ICE vehicles in India.
However, Mr. Goenka also commented on the Government’s 100% electrification goal by 2023 as very ambitious and far-fetched. He said that, initially the goal should be kept as 30% adoption of EVs in India which is achievable.
