Mahindra Electric to be consolidated into Mahindra and Mahindra
Mahindra and Mahindra's board of directors have given in-principle approval to consolidate the Mahindra Electric EV subsidiary into the larger Mahindra automotive business. With this consolidation, Mahindra's EV operations will be categories into two verticals: Last Mile Mobility (LMM) and Electric Vehicle Tech Centre.
The company says that this simplified structure will lead to improvements in innovation, execution excellence, efficiencies and economies of scale, while bringing more value to shareholders. The new structure will also provide the two EV verticals with more resources. The LMM vertical will have complete ownership of the value chain for last-mile mobility solutions while the EV Tech Centre will drive synergies with Mahindra and Mahindra's larger ecosystem of product development capability in MRV, North America and Europe.
Rajesh Jejurikar, executive director of Mahindra & Mahindra 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 which aims 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."