In-principle approval granted for consolidation of Mahindra Electric Mobility with Mahindra & Mahindra

The Board of Directors of Mahindra & Mahindra Limited has granted an in-principle approval for the consolidation of Mahindra Electric Mobility Limited, a step-down subsidiary of the company, into M&M, the company announced on Friday.

This consolidation would categorise electric vehicle operations in two focused verticals – last mile mobility (LMM) and electric vehicle tech centre, the company said in a statement.

M&M had said in a statement a few weeks ago that it is creating a new structure for its electric vehicle business by setting up two different verticals, saying that it is “readying itself for a world where EVs will evolve through different adoption curves with different trajectories across segments.”

Simplifying the structure will drive improvements through innovation, execution excellence, efficiencies and economies of scale, while also unlocking shareholder value, said M&M.

This will also provide LMM vertical with complete ownership of the value chain for last mile mobility solutions to drive growth and execution, whilst it will provide the EV Tech Centre with the depth of resources and synergy with M&M’s larger ecosystem of product development capability in MRV, North America and Europe whilst exploring partnerships and alliances, it further stated.

“Electric vehicles will be the future of the automotive business. To be future ready, we believe that the EVs should be part of the core and mainstream business. This intent to consolidate is a part of our EV strategy which aims to electrify various segments that will popularise e-mobility. We will continue to draw upon our deep understanding of customer needs to bring in exciting new products in the EV space,” said Rajesh Jejurikar, Executive Director, Mahindra & Mahindra Limited.

With the electric vehicles business at an inflection point and poised to grow exponentially, this realignment will help in providing the requisite resources as well as the direction to realizing targeted growth, said M&M.

Its more than two decades old EV journey started with ‘Bijlee’, a commercial electric vehicle. Since then, M&M says EVs have been an important part of the business with a range of passenger and commercial vehicles. There are over 32,000 Mahindra EVs on Indian roads which have covered more than 270 million kilometers, it claimed.

Of late, the company has been stressing on how it plans to build a strong SUV portfolio based on EVs, whilst also zeroing down its focus areas on EVs, SUVs and the domestic market for driving growth. This latest move can be seen in the context of Mahindra’s bet on the EV segment.

“EVs are the future of mobility, not only from a cost advantage but also from a sustainability standpoint. M&M is focused on the entire EV ecosystem including last mile connectivity, fleet mobility, personal mobility and research & development, which will fuel growth through technology and innovation,” said M&M.

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