Mahindra & Mahindra has announced that its investment of Rs. 10,000 crore for electric vehicles has been approved under the Maharashtra Government’s industrial promotion scheme for Electric Vehicles.

The company, through its subsidiary, will make investments of approximately Rs. 10,000 crore over a period of 7-8 years for setting up the manufacturing facility, development, and production of Mahindra’s upcoming Born Electric Vehicles (BEVs), some of which were showcased in Oxfordshire, UK, on August 15, 2022.

Based on the state-of-the-art INGLO EV platform, these include the e-SUVs under the XUV brand with the Twin Peak logo in copper and the all-new electric-only brand called ‘BE’.

Based on Mahindra’s new INGLO platform, the five upcoming born-electric SUVs have been categorised into two distinct sub-brands – XUV.e and BE.

Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra & Mahindra,  stated, “We are delighted with this approval from the  government of Maharashtra for setting up our EV manufacturing plant in Pune, and investing in what has been our ‘home’ state for over 70 years. We are very thankful to the Govt. of Maharashtra for their continued support. The government’s focus on ‘ease-of-doing-business’ and progressive policies, together with Mahindra’s investment, will act as a catalyst for Maharashtra to become India’s EV hub, attracting further Indian and Foreign Direct Investment.”

Mahindra & Mahindra had already announced a plan to invest $1 billion for electric vehicles earlier in the year. The company has already entered into an alliance with the Volkswagen Group for sourcing of parts for 1 million vehicles by the end the decade.

The company has already raised Rs 1950 crore from the private equity major British International Investment under a newly formed electric vehicle company.

To meet its future funding requirement, both BII and Mahindra & Mahindra may hit the market for another round of Phase 1.  

Post the unveiling of BEVs in the UK in August, Jejurikar had told mediapersons that Mahindra was looking at setting up a dedicated factory for EVs and it may come in the newly formed electric vehicle company.

"It is likely to be in the automotive hub and we have already started engaging with multiple state governments," Jejurikar had told mediapersons.  

By 2027, Mahindra plans to sell about 2 lakh electric vehicles and it aims to have about 20-30% of its total sales to come from EVs, the management had guided in the past.

This means, for the electric vehicle portfolio, the company will look at creating a capacity of 15000 to 17000 units a month  a month.

The today's announcement is not clear whether it will be a greenfield facility or acquisition.

Autocar Professional learns that M&M has been amongst the key contenders who are exploring the purchase of GM India plant in Talegaon, but due to the high cost and the GM factory being suitable for small cars, the company may look at setting up the plant near its existing Chakan plant.

The company has assured that 95% of what was unveiled in the UK will be in the market over the coming years. The three models are at an advanced stage of engineering, 60% of vendors are already onboard.

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