Despite COVID-19 and import disruptions thanks to Indo-China tensions, Mahindra Electric says it’s committed to launching three new products in FY21. the corporate had sold a touch over 14,000 electric vehicles last year.
Mahindra’s electric vehicle subsidiary will launch the eKUV100, the Treo Zor and therefore the Atom this fiscal. Encouraged by the demand for Treo e Auto and Treo Yaari e Rickshaw, the corporate is now set to launch a load carrier, the Treo Zor by the top of the year.
“There is a high potential for an electrical auto load carrier for e-commerce and walk delivery. Therefore we are looking to launch Trio Zor, an electrical load carrier by the top of this year”, said Mahesh Babu, MD and CEO of Mahindra Electric in an exclusive interview to CNBC-TV18. He said demand for electric autos is learning and has almost recovered up to 40-50 per cent of pre-COVID levels. the corporate would continue that specialize in electric autos as they create an economic sense for the purchasers, Babu said.
He said the main target on three-wheelers wouldn’t come at the value of other electric products. the corporate has not reduced but has deferred certain capital expenditures thanks to ongoing disruptions.
“Our decision to launch the eKUV in Q1 has been postponed due to the lockdown. trying to find the proper time to launch the eKUV100. Big cities like Mumbai, Chennai and Delhi are still under restrictions. we’ll need to launch at a time when customers can freely use the vehicle”, said Babu.
In February, Mahindra and Mahindra MD and CEO Pawan Goenka had told that the corporate was eyeing a stake sale in Mahindra Electric. “Scale for EVs is extremely important and that we would be subscale if we do everything on our own. to urge larger volumes and reduce costs we’d like strategic investments. it’s too early to speak about an IPO, we’d like to first work on profitability and convey down our stake”, he had said.
But that view has changed and M&M now believes it’s strategically important for it to possess majority control in Mahindra Electric.
“I am happy that Mahindra Electric was EBITDA positive in Q4. Mahindra isn’t looking to divest any stake in Mahindra Electric. we would like to line up a replacement global R&D centre. We are trying to find PE co-investors who are often a neighbourhood of the journey but Mahindra and Mahindra will always be the bulk stakeholder in Mahindra Electric. it’s investing within the company this year as well”, said Babu.
Babu also said that import disruption thanks to India-China tensions was temporary and India’s EV industry was poised for a recovery.
“EV sector has localized much faster than the interior combustion engine industry. tons useful addition has already gone into electric vehicles. Barring the battery cell most components of the Treo are made in India”, said Babu.