After partnering with Volkswagen, Mahindra to explore more EV parts partnerships
Mahindra and Mahindra will look at sourcing additional components from other companies to expand their electric vehicle (EV) portfolio, the chief executive told Reuters. Anish Shah said Mahindra has focused on developing EV components in-house over time, but has now changed course to forge partnerships to achieve faster growth in this segment. Mahindra recently signed a partnership agreement with Volkswagen in which it will look into equipping its electric cars with the German automaker’s motors, battery system components and cells.
“The world is moving towards a lot more partnerships. It’s better to source the best there is than to do it all yourself,” Shah said in an interview at the World Economic Forum summit in Davos.
“At this stage it’s VW (Volkswagen) and as we see similar strengths in other areas we are open to looking at different components that we would bring in and what we are very good at doing internally as well.” , he added .
Though Mahindra is betting big on the development of its EV portfolio, it will face stiff competition from India’s Tata Motors in a country where the clean mobility sector is rapidly gaining momentum. Prime Minister Narendra Modi is offering billions of dollars in incentives for companies to build electric vehicles as India seeks to meet its climate and carbon reduction goals. India’s EV market represents just 1% of the country’s annual sales of about 3 million vehicles, with consumers still opting for fuel-guzzling cars that are far more affordable. Tata dominates the Indian electric vehicle market, raising $1 billion from TPG for the company last year. MG Motor India, owned by Chinese company SAIC Motor, also plans to raise funds to develop its EV business.
Shah said Mahindra will devote and have “significant funds” on electric vehicles, adding, “We will always be open to value-add opportunities.” Mahindra has developed a portfolio of EV commercial vehicles in India, but the latest push is focused on passenger cars and in particular on sports utility vehicles (SUVs).
“Our strike area was authentic SUVs, that’s where we’re going to stay… we’re not going to make EV sedans, not hatchbacks,” Shah said.
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