The Board of Directors of Mahindra & Mahindra Limited (“M&M”) on March 26, 2021, has granted in-principle approval for the consolidation of Mahindra Electric Mobility Limited (“MEML”), a step-down subsidiary, into the Company.
- The consolidation would categorise electric vehicle (EV) operations in two focused verticals: Last Mile Mobility (LMM) and Electric Vehicle Tech Centre.
- Simplifying the structure will drive improvements through innovation, execution excellence, efficiencies and economies of scale. Additionally, it will unlock shareholder value.
- Provide the LMM vertical with complete ownership of the value chain for last-mile mobility solutions to drive growth and execution.
- 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.
Mahindra is the pioneer of electric vehicles and its technology in India. Its EV journey, which is more than two decades old, began with ‘Bijlee’, the aptly named and arguably India’s first commercial and roadworthy electric vehicle. Since then, 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 kilometres. From being inducted into the French Presidential fleet with Peugeot electric two-wheelers to opening a new customer base of women entrepreneurs with Mahindra Treo to Formula E races, Mahindra offers a range of unique EV capabilities to its customers and partners.
With the electric vehicles’ business at an inflection point and poised to grow exponentially, this realignment will help provide the requisite resources and the direction to realising targeted growth.
Rajesh Jejurikar, Executive Director, Mahindra & Mahindra Limited, said, “Electric vehicles will be the future of the automotive business. To be future-ready, we believe that EVs should be part of the core and mainstream business. This intent to consolidate is a part of our EV strategy aiming 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.”
Growth in the EV sector in India has picked up pace in the recent past and will only accelerate further. 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 and development, which will fuel growth through technology and innovation.
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