Mahindra to invest Rs 4.5k cr for growth of two new electric brands

Mahindra & Mahindra has committed Rs 4,500 crore on the overall development, including the creation of production capacity, for the two new ground-up electric brands, a top company executive said on Wednesday.

The Rs 4,500 crore investment is part of the Rs 16,000 crore capex the company has announced for the electric vehicle business between the FY22-27 cycle.

The Mumbai-based auto major is creating production of capacity of 90,000 units per annum at its Chakan-based plant for the two ground-up 'Born Electric' models -- BE 6e and XEV 9e.

"We have allocated Rs 4,500 crore investment for the two models. The investment would go into the overall development of the electric vehicles," Mahindra & Mahindra (M&M) Executive Director and CEO for auto and farm sectors Rajesh Jejurikar told reporters here.

He noted that the production capacity at Chakan could be further scaled up to 1.2 lakh units per annum.

The Mumbai-based auto major on Tuesday unveiled two models -- BE 6e and XEV 9e -- here with deliveries expected to commence in the February-March period next year.

The entry-level variants of BE 6e and XEV 9e are priced at Rs 18.9 lakh and Rs 21.9 lakh, respectively (ex-showroom).

The prices of other variants of the two models will be announced later.

The company said that the BE 6e comes with a range of 682 km while the XEV 9e features a range of 656 km.

While acknowledging that there is growing demand for EVs, Jejurikar noted that the company is looking to create lifestyle products, which are also accessible.

"We believe volume will come out of accessibility. So, our strategy is always to create a good combination of aspiration and access," he added.

"We know there will be some time for people to get used to the idea (EVs), but we are breaking all barriers. In a way, pricing can be a barrier," Jejurikar said.

He pointed out that the company is eyeing markets across the globe for the two electric models after establishing the brand in the domestic market.

"As for the overseas markets, we first want to go to the right-hand drive markets... later left-hand drive markets can be covered as well," he stated.

The company's priority, however, is to first stabilise and focus on establishing the brands in India, Jejurikar said.

The automaker plans to roll out a go-to-market strategy for the two electric SUVs in a phased manner in the latter part of January 2025.

Deliveries are expected to commence towards the end of February or early March 2025.

The company said it is bringing on board 500 specialists from luxury and premium brands to provide a pre-purchase drive experience.

Besides, it will put around 400 tech experts for customer experience with dedicated support from Chennai-based Mahindra Research Valley (MRV).

Mahindra, currently, sells XUV400 in the electric passenger vehicle segment.