- The automotive behemoth is considering partnering with Volkswagen to obtain EV components.
- Mahindra’s new electric vehicle division is currently valued at USD 9.1 billion.
India’s Mahindra Group is reportedly planning to invest in an EV battery cell manufacturer to meet the company’s requirements for future electrification after the automaker raised USD 250 million from British International Investment (BII) for its new electric vehicle division, which is now valued at USD 9.1 billion.
The Indian multinational conglomerate is also considering partnering with Volkswagen to obtain EV components. In this context, Mahindra CEO Anish Shah stated that the business was open to looking at some form of investment with a global leader in the battery-cell market to secure future supplies, even though the collaboration with Volkswagen is expected to help the manufacturer satisfy its near-to medium-term battery needs.
Producing batteries is the last thing they intend to accomplish when they can just simply partner with the battery manufacturers, the CEO added.
As a part of Mahindra’s electrification objectives, the company will introduce five electric sport utility vehicles in the forthcoming years with an ambitious goal that these models would account for up to 30%, or nearly 200,000 units, of its annual SUV sales by March 2027.
With the rising popularity of battery-powered vehicles as well as the worldwide shortage of auto components, automakers are trying to figure out better ways to manage costs and supplies, even going as far as investing billions in mining as well as units of motors and batteries.
Shah further claimed that most of the components except motors and batteries, of EVs are analogous to those of combustion-engine vehicles and Mahindra can successfully produce most of those parts on-site. Besides, they are looking forward to entering a deal akin to the one with Volkswagen for battery supplies as well as are ready to make necessary investments if required.