M&M’s electric vehicle plan is encouraging; all eyes are now on execution


Shares of Mahindra & Mahindra Ltd (M&M) are currently hovering around the 52-week high of 1,298.70 each, which he hit on the NSE on Tuesday. It comes on the back of the automaker unveiling its Born Electric vision on Monday, a public holiday.

The company aims to expand in the electric sport utility vehicle (SUV) segment by collaborating with global companies. Currently, it is in partnership with Volkswagen. The latter will supply the electronic components MEB (modular electric drive matrix) for the new M&M platform, INGLO.

“Relying on the components of the Volkswagen – MEB platform, it will bring its own benefits, but the company will have to crystallize a localization plan,” said analysts from Nomura Financial Advisory and Securities (India) in a August 16 report.

The five electric SUVs, which M&M plans to launch under the XUV and BE brands, will share the common INGLO platform. Four of these SUVs are expected to be launched between 2024 and 2026. The automaker aims for the penetration of its electric SUVs to reach 25% by 2027.

“It is encouraging to see management planning well in advance with clearly defined timelines for product launches, in our view. The platform and product vision is encouraging. ‘company,” the Nomura report adds.

M&M is also seeking collaboration in other aspects of the electric vehicle industry, such as cell manufacturing, charging and energy solutions. “While we’ve been positive about M&M’s SUV vision, execution over the past two years has remained above our expectations. If execution on EVs is similar, there’s room for significant value creation, in our view,” Nomura analysts said.

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