Mahindra to invest ₹10,000 cr in Pune EV plant

Mahindra & Mahindra Ltd. on Wednesday announced an investment of ₹10,000 crore over a period of 7-8 years to set up an electric vehicle plant in Pune, Maharashtra.

The carmaker plans to invest this money to build a manufacturing facility that will develop and produce Mahindra's upcoming Born Electric Vehicles (BEVs), some of which were showcased in the U.K. on August 15, 2022.

The investment has been approved under the Maharashtra government's industrial promotion scheme for electric vehicles. "The government's focus on 'ease-of-doing-business' and progressive policies, together with Mahindra's investment, will act as a catalyst for Maharashtra to become India's EV hub, attracting further Indian and Foreign Direct Investment," says Rajesh Jejurikar, executive director, auto & farm sectors, Mahindra & Mahindra.

The announcement comes months after Mahindra & Mahindra unveiled five new electric SUVs as part of its INGLO electric vehicle platform. These SUVs will be launched towards the end of 2024 starting with the Indian market.

In August, the carmaker unveiled two new brands, created specifically to house the company's EV portfolio — XUV with the Twin Peak logo in Copper and the all-new electric-only brand called BE.

The carmaker's five new electric SUVs include the XUV.e8, XUV.e9, BE.05, BE.07 and BE.09. The first four of these are to be launched between 2024 and 2026. Mahindra claims its INGLO platform offers a significant reduction in under-body weight, leading to one of the lightest skateboards.

Mahindra & Mahindra has also expanded its partnership with The Volkswagen Group. Earlier this year, both companies signed a term sheet on the supply of Volkswagen's proprietary Modular Electric Drive (MEB) electric components for Mahindra's new electric SUVs. The automaker sees its partnership with Volkswagen crucial in its plans to locally produce battery cells in the imminent future. "We are looking at the localisation of battery cells, and that is where our partner Volkswagen comes into play, which is connected all the way down to the mines. That is the strength that they are building. The value leveraging with the partner who is investing $40 billion in the electric journey is this, and that is why we believe that partnership is the way to go," Jejurikar told Fortune India in an interview in September.

The two companies will explore more opportunities for collaboration, opening the perspective towards a broader strategic alliance to accelerate the electrification of the Indian automotive market.

In July 2022, Mahindra & Mahindra had raised ₹1,925 crore from British International Investment, a development finance institution of the U.K., for its newly incorporated EV subsidiary.