Mahindra will explore sourcing more components from other companies to bolster its electric vehicle portfolio.
Indian companies Mahindra and Mahindra will explore sourcing components from other companies to bolster their electric vehicle (EV) portfolio, its chief executive told Reuters.
Anish Shah said Mahindra had over time focused on developing electric vehicle components in-house, but has now shifted gears to forging partnerships to accelerate segment growth.
Mahindra signed a partnership agreement with Volkswagen last week in which it will explore equipping its electric cars with motors, battery system components and cells made by the German automaker.
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“The world is moving towards a lot more partnerships. It’s better to find the best there is than to do it all ourselves,” Shah said in an interview at the World Economic Forum summit in Davos.
“It’s VW (Volkswagen) at this point and as we see similar strengths in other areas, we’re open to looking at various components that we would bring in and also doing what we do very well in internally,” he added. .
Although Mahindra is betting heavily on developing its portfolio of electric vehicles, it will face fierce competition from India’s Tata Motors in a country where the clean mobility sector is growing rapidly.
Prime Minister Narendra Modi is offering companies billions of dollars in incentives to build electric vehicles as India seeks to meet its climate change and carbon reduction targets.
India’s EV market accounts for just 1% of the country’s annual sales, or about 3 million vehicles, with consumers still opting for fuel-guzzling cars that are much more affordable.
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Tata dominates India’s electric vehicle market and last year raised $1 billion from TPG for the company. MG Motor India, which is owned by China’s SAIC Motor, also plans to raise funds to expand its electric vehicle business.
Shah said Mahindra will use “significant funds” for electric vehicles and made them available, adding, “We will always be open to value creation opportunities.”
Mahindra has developed a portfolio of electric utility vehicles in India, but the latest push is focused on passenger cars, and specifically sports utility vehicles (SUVs).
“Our sweet spot has been genuine SUVs, that’s where we’re going to stay…we’re not going to make electric sedans, not hatchbacks,” Shah said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)