Mahindra & Mahindra (M&M) is looking to maintain its leadership in the small electric commercial vehicle segment by launching a slew of new products and pushing its manufacturing footprint further.
This comes alongside the decision of M&M announced on May 16 to inject Rs 12,000 crore into the electric vehicles business where a total of nine new EVs are slated for launch 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. M&M’s 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 M&M 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 clocked a total volume of nearly 700,000 units during FY24 in the domestic market, posting a growth of 42% year-on-year.
