M&M Set To Invest Rs 4.5k Cr In 2 Electric Vehicle Brands

Chennai: Mahindra & Mahindra has committed Rs4,500 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 Rs4,500 crore investment is part of the Rs16,000 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 Rs4,500 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 sectoRsRajesh Jejurikar told reporteRshere.

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 Rs18.9 lakh and Rs21.9 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.