Mahindra & Mahindra, a leading SUV manufacturer, is placing a significant bet on Battery Electric Vehicles (BEVs) to meet the upcoming CAFE III norms and expand its international presence. Currently, BEVs account for around 8% of the company’s overall sales, which is slightly higher than the industry average of 5%. The company aims to increase this penetration to the high teens over the next two years to meet the CAFE III norms, which require a reduction in CO2 emissions from 113 g/km to 91.7 g/km by April 1, 2027.
The company’s plans to ramp up its BEV business are also driven by the government’s call for Indian OEMs to be more export-oriented. Mahindra & Mahindra plans to start its global play for BEVs in the UK within the next 18-24 months. The company has already seen significant growth in BEV sales, with 4,100 units of its XEV 9e and BE6 BEVs registered last month. This translates to a 100% year-on-year growth in electric passenger vehicle registrations in India.
Mahindra & Mahindra’s CEO, Nalinikanth Golaguntha, stated that around 60% of BEVs in the domestic passenger vehicle market already meet price parity with equivalent petrol vehicles. The company has a monthly BEV production capacity of 5,000 units, which can be scaled up to 8,000 units in a few weeks. Golaguntha also mentioned that customers are now more concerned about the resale value of BEVs, battery warranties, and charging infrastructure than price parity with petrol vehicles.
The company’s bet on BEVs is clear, and it may consider hybrid offerings only if the regulatory environment requires it. However, for now, Mahindra & Mahindra is focused on putting all its eggs in the EV basket when it comes to new powertrain technology. Golaguntha believes that with its BEV models, powered by a 79kWh battery pack, 95% of regular driving cycles can be met with a single charge. The company is committed to meeting the government’s strategic imperatives of reducing India’s fuel import bill, increasing automobile exports, and meeting the Paris Accord goal of containing global warming, and believes that only EV is the end state.