Mahindra will spend Rs 4.5k crore to develop two new electric brands.

Mahindra & Mahindra: Mahindra & Mahindra has committed Rs 4,500 crore for overall growth including creation of production capacity for two new ground-up electric brands, a top company executive said on Wednesday. The investment of Rs 4,500 crore is part of the Rs 16,000 crore investment the company has announced for the electric vehicle business between the FY22-27 cycle.

The Mumbai-based auto major is building a production capacity of 90,000 units per annum for two ground-up ‘Born Electric’ models – BE 6e and XEV 9e – at its Chikan plant. “We have earmarked an investment of Rs 4,500 crore for the two models. This investment will go towards the overall development of electric vehicles,” Mahindra & Mahindra (M&M) executive director and CEO of auto and farm sector said. Rajesh Jejurikar told reporters here.

He said that the production capacity in chicken can be further increased to 1.2 lakh units per annum. The Mumbai-based auto major on Tuesday unveiled two models — the BE 6e and the XEV 9e — which are expected to begin deliveries 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). Prices for other variants of both the models will be announced later. The BE 6e comes with a range of 682 km while the XEV 9e has a range of 656 km, the company said.

Acknowledging that there is a growing demand for EVs, Jejurikar noted that the company is trying to create lifestyle products, which are also accessible. “We believe volume will come out of reach. So, our strategy is always to create a good mix of desire and reach,” he added.

“We know it will take some time for people to get used to the idea (of EVs), but we are breaking all the barriers. In a way, pricing can be a barrier,” Jejurikar said. said He pointed out that the company is eyeing global markets for the two electric models after establishing the brand in the local market.

“As far as overseas markets are concerned, we want to go into right-hand drive markets first…left-hand drive markets can also be covered later,” he said. Jejurikar said the company’s priority, however, is to first consolidate and focus on establishing brands in India.

The automaker plans to develop a go-to-market strategy for the two electric SUVs in a phased manner by the end of January 2025. Deliveries are expected to begin in late February or early March 2025.

The company said it is bringing on board 500 experts from luxury and premium brands to provide a pre-purchase drive experience. In addition, it will hire around 400 technical experts for customer experience with dedicated support from Chennai-based Mahindra Research Valley (MRV).

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