Mahindra & Mahindra (M&M), which has a first-mover advantage in the manufacture and sale of electric vehicles in India, is set to benefit in a big way from new business coming from Energy Efficiency Service Ltd. (EESL), a joint venture company of PSUs under the Ministry of Power, Government of India.
Early this week, EESL floated a tender for procuring 10,000 electric cars and 4,000 chargers for the coal, mining, power, and new and renewable energy ministries, as well as for providing them on rent to other government departments, according to a PTI report. The tender is in line with the government’s and NITI Aayog’s aggressive and ambitious push for e-mobility in the country and aiming for sales of only electric vehicles by 2030.
According to the tender, 3,000 AC (alternate current) or slow chargers and 1,000 DC (direct current) fast charger’s compatible with Bharat AC-001 and DC-001 charger specification would be procured, the report added.
Mahindra Electric, Mahindra Group’s electric vehicle arm, is looking to capitalise on new business opportunities. So far, M&M has invested Rs 600 crore in the EV business that it acquired from Reva Electric Car Company seven years ago.
By 2019-2020, Mahindra Electric plans to expand assembly capacity to 60,000 units a year. Towards that, it will build a new plant in Chakan that may have an annual capacity of 48,000 units. While, the existing Bengaluru plant’s capacity can be scaled to 12,000 units, from up to 5,000 units at present.
Furthermore, Mahindra’s next generation of electric vehicles will use its new electric drivetrains that are capable of developing 41-204hp and delivering a range of 250-350km on a charge. A 0-60kph time of 4-5sec and top speed of up to 200kph are some of the targets the carmaker has set for itself.
Although its EV business is yet to turn profitable, the carmaker is bullish on the growth of EVs in India, thanks to the serious push towards electric mobility from the government.
M&M and EESL are gearing up to officially enter into a public-private sector partnership. An announcement will be made soon. Stay tuned.