BANGALORE – Indian automakers Mahindra and Mahindra Corp on Wednesday announced a budget of 100 billion rupees (1.21 billion rupees) to set up an electric vehicle (EV) manufacturing plant near the western city of Pune, about 90 miles southeast of Mumbai. announced that it will invest
The Mumbai-based conglomerate said the investment, which has been approved by the Maharashtra state government, will be made over a period of seven to eight years.
Mahindra, known for its Sport Utility Vehicles (SUVs) and Jeeps, will build its upcoming Bourne Electric Vehicle (BEV) series at its new factory, including an EV variant of its popular SUV, the XUV 700.
India’s car market is small relative to its population, with EVs accounting for just 1% of total annual sales of around 3 million vehicles, but the government wants to grow this to 30% by 2030.
The new plant will help Mahindra take on domestic rival Tata Motors, which dominates the Indian EV market with electric models of the Nexon SUV and Tigor hatchback. In August, Tata bought a former Ford Motor plant in the western state of Gujarat after the US automaker pulled out of the domestic market.
Tata’s EV division, in which private equity firm TPG has invested, is valued at $9 billion.
Tech-to-tractors Mahindra Group is investing $250 million to $500 million for its new EV unit, valued at $9 billion in July, after its first round of funding from British International Investment (BII). We are negotiating with global investors to procure.
Mahindra’s first electric SUV is expected to go on sale in January. In August, the automaker deepened its ties with the Volkswagen Group, where the German automaker supplies electrical components.
Mahindra’s new plant will be built in one of India’s oldest car manufacturing hubs, home to companies such as Volkswagen, Mercedes-Benz, Bajaj Autos and Hero Motocorp.