Indian automaker Mahindra and Mahindra Ltd claimed on Wednesday it would devote 100 billion rupees ($1.21 billion) to set up an electric vehicle (EV) production plant in close proximity to the western town of Pune.
The Mumbai-headquartered conglomerate reported the investment, for which it has received approval from the Maharashtra point out federal government, would be unfold around a 7-8 year interval.
Recognized for its sports activities utility cars (SUVs) and jeeps, Mahindra will manufacture its forthcoming Born Electrical Motor vehicles (BEVs) assortment that incorporates the EV variant of its well-liked SUV, the XUV 700, at the new plant.
India’s car marketplace is small compared to its inhabitants and electric models make up just 1% of the full yearly vehicle profits of about 3 million. But the govt would like to mature this to 30% by 2030.
The new plant will assistance Mahindra just take on domestic rival Tata Motors which dominates India’s EV market place with electric powered products of its Nexon SUV and Tigor hatchback. In August, Tata acquired a previous Ford Motor plant in the western condition of Gujarat after the U.S. automaker exited the domestic industry.
Tata’s EV unit, in which private equity agency TPG has an investment decision, is valued at $9 billion.
The tech-to-tractors Mahindra Team is in talks with worldwide investors to raise among $250 million and $500 million for its new EV device which was also valued at $9 billion in July following its first elevate from British International Investment (BII).
Mahindra’s to start with electric powered SUV is envisioned to be accessible for sale in January. The carmaker in August deepened its ties with Volkswagen Team, underneath which the German carmaker will source electric powered parts to its Indian peer.
Mahindra’s new plant will be in one particular of India’s oldest car manufacturing hubs, which is dwelling to companies like Volkswagen and Mercedes-Benz as properly as Bajaj Auto and Hero MotoCorp.