Mahindra open to investing in EV battery cell maker to secure supplies - CEO

Mahindra open to investing in EV battery cell maker to secure supplies - CEO

Mahindra open to investing in EV battery cell maker to secure supplies - CEO

 India's Mahindra & Mahindra (MAHM.NS) could consider investing in a battery-cell company to meet future electrification needs, its CEO said, after the company raised funds for its new electric vehicle (EV) unit at a $9.1 billion valuation.

Mahindra on Thursday raised $250 million from British International Investment for the unit and is exploring a partnership with Volkswagen AG (VOWG_p.DE) to source such EV components as batteries and motors.

While the Volkswagen deal would meet Mahindra's "short to medium term" battery needs, Mahindra CEO Anish Shah said the company was open to looking at some sort of "investment with a global leader" in the battery-cell space if it needed to secure future supplies.

"Our intent is not to get into (manufacturing) batteries," Shah said in an interview. "There are people who do it very well. We can partner with them; we could be a co-investor in some form. We don't need to own it and run it."

Mahindra plans to launch five electric sport-utility vehicles (SUVs) over the next few years. These models are expected to contribute up to 30%, or about 200,000 units, of its total annual SUV sales by March 2027.

Growing demand for EVs and disruption of supply chains across the globe are pushing automakers to look at ways of having greater control over supplies and costs. Some carmakers are spending billions of dollars on mines and factories for motors and batteries - a departure from years of relying solely on suppliers.

Mahindra plans to launch five electric sport-utility vehicles (SUVs) over the next few years. These models are expected to contribute up to 30%, or about 200,000 units, of its total annual SUV sales by March 2027.

Growing demand for EVs and disruption of supply chains across the globe are pushing automakers to look at ways of having greater control over supplies and costs. Some carmakers are spending billions of dollars on mines and factories for motors and batteries - a departure from years of relying solely on suppliers.

India's EV market, dominated by local carmaker Tata Motors (TAMO.NS), represents only 1% of the country's annual sales of about 3 million vehicles. The government wants this to grow to 30% by 2030.

Reporting by Aditi Shah; Editing by Bradley Perrett