According to a person familiar with the situation, Mahindra & Mahindra (M&M) is set to invest at least 3,000 crores in developing electric vehicles (EV) over the next three years, with capital expenditure on EVs and internal combustion engine (ICE) vehicles approaching each other.
To establish a strong portfolio of vehicles in India’s EV market, the company also plans to debut its first EV SUV, the XUV 400, in the first half of the following financial year.
“The company plans to invest ₹3,000- ₹5,000 crore as capital expenditure on EVs over the next three years. The ratio of capital expenditure on EVs and ICE vehicles will be 50:50,” said one of the people mentioned above, requesting anonymity.
With its majority stake in homegrown EV maker Reva back in 2010, Mahindra was one of the pioneering Indian automakers in electric vehicles.
In addition, electric versions of the company’s successful ICE vehicles, such as the famous Scorpio, are planned to be introduced.
According to a report by consulting firm RBSA Advisors, India’s EV market, which is still in its inception, is predicted to develop at a compound annual growth rate of 90% this decade, reaching $150 billion by 2030.