Mahindra Group is considering local manufacturing of electric vehicle (EV) batteries in India. The homegrown automobile giant is exploring partnerships with global players to achieve this goal, according to MD and CEO Anish Shah. According to PTI, Shah highlighted the company’s strategy to meet the anticipated surge in EV demand by producing battery cells domestically.

Although Mahindra was an early entrant in the Indian electric car market, the company has recently lagged behind competitors. Currently, Tata Motors dominates the mass market EV segment in India, while Mahindra offers only the XUV400. To regain its presence in the EV market, Mahindra plans an aggressive product launch strategy and aims to build a robust ecosystem, including local EV battery production.

Shah emphasised the importance of cell manufacturing in India, stating that they are closely looking at local cell manufacturing. If essential, Mahindra will seek partnerships for this purpose. He added that the company is in discussions with potential global technology partners and private equity investors to share the financial burden.

Shah also pointed out the challenges of range anxiety and high EV costs affecting the market. He emphasised the need for a robust EV charging infrastructure, comparing India’s 27,000 chargers to the US’s 176,000 and China’s significantly higher numbers. Developing EV charging infrastructure is crucial as demand for electric vehicles grows. Mahindra expects its portfolio to be 20-30 per cent electric by 2027. Shah believes that as the charging infrastructure improves, more consumers will adopt EVs, predicting a market inflection point in about five years. He concluded, “We believe that the launch of our new electric vehicle models starting January 2025 would play a key role in this aspect.”