Mahindra & Mahindra (M&M) wants to keep up its dominance in the market for small electric commercial vehicles by expanding its production presence and introducing several new products.
This coincides with M&M’s May 16 announcement that it will invest Rs 12,000 crore in the electric car industry, with nine new EVs expected to be introduced by 2030.
Rajesh Jejurikar, executive director and CEO (auto and farm equipment sector), M&M said, “We have seen strong growth in market share (in the electric three-wheeler segment). Last year (FY24) there was a negative growth for the industry and we grew through market share gain. We ended the year with 59% share.”
Mahindra Last Mile Mobility (MLMM), is a separate entity created to tap opportunities in the mini cargo and shared mobility space with EV and non-EV powertrains. This company sells three and four-wheelers having electric, petrol, diesel and CNG options.
During FY24 the electric three-wheeler segment saw the entry of Pune-based Bajaj Auto, one of India’s largest three-wheeler makers. Chennai-based TVS Motor Company will be launching its electric three-wheeler in FY25.
“We have raised Rs 1,000 crore from two investors in (MLMM). We have aggressive growth plans. There is work happening on new-gen platforms and completely new products for the future,” Jejurikar added in a post earnings meeting.
Two out of the seven new light commercial vehicles slated for roll out by 2030 will be fully electric. Mahindra & Mahindra Zaheerabad plant in Telangana is being converted into an electric-only three-wheeler vehicle manufacturing plant.
“We are investing in capacity at Zaheerabad. This plant will become an electric three-wheeler plant.We moved out auto products to other plants,” Jejurikar added.
There was a 51% rise in electric three-wheeler volumes for Mahindra & Mahindra during FY24 to 66,025 units as against 43,587 units clocked in FY23. This total stood at 16,862 in FY22.
The penetration of electric powertrain in the three-wheeler segment stands at 11% presently, which is one of the highest across segments.
“The three-wheeler segment has the best chance of electrification. Over the next few years it will have a penetration of 40-50%. We do expect (our) market share to come down to a reasonable level but we are expecting quantum growth,” Jejurikar added.
According to the data supplied by the Society of Indian Automobile Manufacturers (SAIM), the three-wheeler segment of Mahindra & Mahindra clocked a total volume of nearly 700,000 units during FY24 in the domestic market, posting a growth of 42% year-on-year.
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