Why is Mahindra & Mahindra investing an additional Rs.3000 crore in EVs?

M&M plans to invest Rs.3,000 crore in its electric vehicles business over the coming 3 years and this likely to be in addition to the Rs.9,000 crore that M&M has already committed to invest. The strategy of Mahindra & Mahindra is likely to be largely inorganic and they would be looking for synergistic acquisition targets in this particular space to expand footprint.

M&M plans to put 5 lakh electric vehicles on Indian roads by 2025, which is an ambitious target. The company will initially focus EVs on 3-wheelers and small 4-wheelers as cost of ownership is relatively lower in these cases. In addition, the big challenge of charging facilities also gets addressed due to swappable batteries.