Mahindra plans to locally make EV batteries in India, says Group CEO Anish Shah

Mahindra Group is planning to manufacture electric vehicle (EV) batteries locally in India. The move is driven by the anticipated surge in demand for electric vehicles in the country.

Mahindra's MD and CEO Anish Shah, in a recent interaction with PTI, emphasized the importance of domestic production to meet this demand. “One area that we continue to look at more closely is cell manufacturing, and that is something where there are various considerations... if we feel it’s essential for us, we will look at a partnership for cell manufacturing,” he stated.

Exploring partnerships 

To achieve local battery production, Mahindra is exploring partnerships with global technology players and private equity investors. Shah highlighted the company's strategy, stating that Mahindra will not bear the entire financial burden alone.

"We will look at a global technology partner, and potentially at private equity partners as well because we will not put the entire capital," he said. The collaborative approach aims to enhance Mahindra's ability to produce battery cells domestically.

Aims to regain its market position

Mahindra was an early player in the Indian electric car market but has recently fallen behind competitors, particularly Tata Motors. Currently, Mahindra offers only one electric model, the XUV400.

To regain its presence, Mahindra plans to launch a series of new products and build a comprehensive ecosystem for its upcoming electric cars.

Shah emphasized, “We believe that the launch of our new electric vehicle models starting January 2025 would play a key role in this aspect.”

Challenges in the EV Market

Despite the optimistic outlook, Mahindra faces significant challenges, including range anxiety and the high cost of EVs. Another major challenge is the underdeveloped EV charging infrastructure in India.

Shah pointed out that India has only 27,000 chargers compared to the US's 176,000 and China's much higher numbers. "What is not in place today is EV charging and that has to develop now,” Shah said.

Future plans

Mahindra also has long-term plans for its electric vehicle arm, Mahindra Electric Automobile Ltd (MEAL). Shah mentioned that the company is considering a possible listing of MEAL around 2030. “We will probably look at in the 2030 timeframe or so,” he noted.

In addition to launching new models, Mahindra plans to introduce nine internal combustion engine (ICE) SUVs, seven EVs, and seven light commercial vehicles by 2030, aiming for a significant presence in both traditional and electric vehicle markets.