India’s M&M shifts focus to electric three-wheelers for more growth: report
NEW DELHI, NNA – Major Indian vehicle maker Mahindra and Mahindra (M&M) Ltd. has revised its strategy to shift its focus to developing and selling electric three-wheelers in the coming years as lack of infrastructure and high prices have weighed on its electric car business.
M&M, which runs its electric car business through wholly-owned subsidiary Mahindra Electric Mobility Ltd., has already set a target of selling 10,000 electric three-wheelers a month, according to a livemint report on Sunday, citing two people aware of the company’s plans.
The group has been talking to multiple state governments and private firms to promote such zero-emission vehicles, the sources said in the report.
The company’s decision comes as the Indian government, seeking to reduce pollution in its cities, has rolled out the Faster Adoption and Manufacture of Electric and Hybrid and Electric Vehicle (FAME) scheme.
Last year, the government announced a 100 billion rupee ($1.32 billion) outlay for the FAME 2 scheme which started in April 2019 for three years. It is designed to promote purchases of 500,000 electric three-wheelers, 55,000 electric cars, 7,090 electric buses and one million electric two-wheelers.
Mahindra Electric Mobility has so far introduced two models of three-wheelers, the Treo and e-Alfa Mini. It has tied up with an Indian firm, SmartE, which offers relatively short distance transportation services with electric vehicles, according to the report.