M&M, Ola Electric to unfurl e-car strategies on 75th Independence Day

On August 15, two companies - Mahindra & Mahindra and Ola Electric are set to take the wraps off their individual e-car strategies as they seek to stake their claim in India's nascent e-car market

On August 15, two companies — Mahindra & Mahindra (M&M) and Ola Electric — are set to unveil their e-car strategies as they seek to stake their claim in India’s nascent e-car market.

With an estimated production of 600,000 e-four wheelers by 2030, India is expected to lead the production charts among emerging Asian countries, according to a recent report by McKinsey titled Capturing growth in Asia’s emerging EV ecosystem.

Production of electric four-wheelers is forecast to see a compound annual growth rate (CAGR) of 45 per cent between 2022 and 2030 in emerging Asian markets. These include India, Indonesia, Thailand, Malaysia, Vietnam and Singapore.

India is among a handful of countries that support the global EV30@30 campaign, which targets to have at least 30 per cent new vehicle sales to be electric by 2030, said Ravi Bhatia, president, JATO Dynamics.

E-PV sales in India have grown 4.4X year-on-year (YoY) in the second quarter of calendar year 2022, albeit on a small base, he said.

The choice of the Platinum Jubilee of India’s independence to make the strategic announcement on e-cars seems to bind Mahindra and Ola with a common thread.

The event will be witnessed with great interest for two reasons.

For M&M, it will mean stamping a presence in India’s E-passenger vehicle market where rival Tata Motors has a head start.

It also means justifying to its investors the attractive $9-billion valuation it got last month from British International Investment (BII).

M&M and BII will invest over $1 billion in a proposed four-wheeler e-passenger vehicle company.

On Monday, at Mahindra Advanced Design Europe (MADE) studio in Oxfordshire, UK, Mahindra will showcase five futuristic models as part of its Born Electric Vision, Autocar India reported last week. This will include a near-production-ready electric version of the XUV700, which will likely be called XUV800.

This will mark the debut of Mahindra’s first bespoke EV platform. This will be preceded by the all-electric XUV400 expected in early 2023.

M&M will also showcase the electric version of the XUV900 (the expected coupe derivative of the XUV700), the magazine reported. 

Mahindra had earlier stated that EVs will account for 20 per cent of its total utility vehicle (UV) volumes by 2027.

Ola Electric will announce an entry into the e-car market, much the same way it did for the e-two wheeler a year ago on Independence Day.

Bhavesh-Aggarwal, co-founder of Ola Cabs and Ola Electric, is set to reveal details of the company’s maiden electric car on Monday.

The SoftBank-backed start-up, which sells the S1 Pro e-scooter, is set to debut in the e-car market with a model that claims to have a range of 500 km.

The company plans to bring “the sportiest car ever built in India that would be rich in features, specs and in-house tech. It would disrupt the existing status quo in the industry,” Aggarwal wrote on Twitter earlier in the month.

“The initiatives from Mahindra, Tata Motors and Ola will help Indian manufacturers take an early lead,” said Bhatia.

The choice presently is limited, the price of EVs is still significantly higher and the charging infrastructure is still evolving, he stated.

In addition to meeting the stricter emission norms, EV plans will help firms get access to the global markets. Their success will hinge on delivering on quality and price, he added.

In the run-up to making a formal entry into the e-car market, Ola has been hiring industry veterans.

It has appointed John O’ Connor, a former senior executive at Tata Motors, as vice-president, car projects.

Franco Bellillo, formerly with BMW and Beijing Electric Company, has been appointed head of purchasing.

For the design function, it has hired Ramkripa Ananthan, former chief of design at Mahindra and Mahindra, and Wayne Burgess, former chief of design at JLR and Aston Martin, according to people aware about the company’s plans.

Ola Electric has also been hiring for roles in software development, vehicle engineering, product management and data science for the proposed car plant.