You are here: Home » Opinion » Editorial » Editorials
Business Standard

Mahindra to invest Rs 5 bn in electronic vehicle research, drivetrain plant

vehicle research, drivetrain plant


In anticipation of the growing demand for electric vehicles (EVs) in India, the Mahindra Group is looking to invest Rs5 billion in setting up a global R&D centre for EVs in Bengaluru and a high-voltage electric drivetrain plant in Chakan over the next few months.

At the launch of its electric three-wheeler Treo in Bengaluru on Thursday, Pawan Goenka, managing director at Mahindra and Mahindra, said cumulative investments made by the firm in electric mobility would reach Rs10 billion by 2020. The firm has already invested Rs3 billion in expanding its plant in Bengaluru to produce a peak of 1,000 units of the Treo every month.

This includes, the development cost for the company's first electric three-wheeler powered by lithium ion batteries. Mahindra Electric's unit will also continue to manufacture low-voltage drivetrains, which go into the Treo and its electric cars E2O and e-Verito. Drivetrains of higher capacity will be made at the company's upcoming plant in Chakan, which will become operational sometime in 2020. The plant for more powerful electric drivetrains will be ready in time for the rollout of Mahindra's higher-capacity EVs, including the S201, which the company says will be launched in mid-2020. While the vehicles will be manufactured at Mahindra's vehicle plants, the drivertrains will come from Mahindra Electric.

“For vehicles, we will be making them at the plants so there's no capacity constraint. The only constraint will be how many powertrains we can manufacture. This unit can produce 2,000 powertrains a month and the new unit can do around 3,000 units a month, so totally we can manufacture around 5,000-6,000 powertrains a month by 2020,” said Goenka.

While the plants have been built to a certain capacity, Goenka said their utilisation would depend on the demand for EVs in the country.

He refrained from sharing EV sales expectations citing that he's always been wrong when predicting when sales of the zero-emission vehicles would pick up.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 16 2018. 10:52 IST