Mahindra will not push away ICE sooner or later despite future EV plans

Gajanan Kashikar Updated: May 18, 2024, 10:45 AM IST

In a recent post-earnings press conference, Anish Shah, Managing Director and Chief Operating Office, M&M, revealed the direction of Mahindra and stated that the brand will not abandon the internal combustion engine (ICE) even beyond 2030 and these vehicles will be an important part of its line-up despite plans to introduce a range of electric vehicles (EVs) in the coming years. Shah said, "ICE continues to be an important part of the portfolio, and will continue to be important for consumers over the next 5-7 year."

Mahindra has laid out a plan to invest Rs 27,000 crore to expand its auto business over the period of the next three years. It will use Rs 14,000 crore for ICE vehicles (out of which, Rs 8,500 crore will be invested for SUVs), while Rs 12,000 crore will go into the development of the battery electric vehicles. The remaining Rs 1,000 crore are allotted to other sub segments. Having said that, its further investment plans for ICE from FY2027 will depend upon EVs trend.

Speaking about giving more weightage to ICE over EV, Rajesh Jejurikar, Executive Director (Auto & Farm Sector), M&M, said, "The ICE segment is growing at a healthy rate, and we make very good financial returns in the current portfolio that we sell. So it makes sense for us to stay invested in a business where our brands are strong."

By the end of the decade, Mahindra plans to launch nine SUVs, including six new models and three mid-cycle facelifts, one of which, the XUV 3XO, went on sale last week.

On the other hand, the company also revealed its ambitions to explore hybrid technology. "At this point in time, we feel good about the focus on EVs, but from a consumer demand standpoint, if that becomes a bigger factor, we will be ready for hybrids too. We are looking at hybrid technology closely and we will continue to adapt as it moves on," he stated.

With inputs from ET Auto

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