Mahindra and Mahindra’s Board of Directors has granted an in-principle approval for consolidating Mahindra Electric Mobility Limited, a step- down subsidiary into the company.
The company said the move will help simplifying the structure and drive improvements through innovation, execution excellence, efficiencies and economies of scale. M&M said in a statement. It will unlock shareholder value, too.
The consolidation would categorize electric vehicle (EV) operations in two focused verticals: Last Mile Mobility (LMM) and Electric Vehicle Tech Centre. LMM vertical will have complete ownership of value chain for last mile mobility solutions to drive growth and execution. It will also provide EV Tech Centre with the depth of resources and synergy with M&M’s larger ecosystem of product development capability in MRV, North America and Europe whilst exploring partnerships and alliances.
Mahindra’s over two decades old EV journey started with ‘Bijlee’– India’s first commercial and roadworthy EV. Since then, EVs have been an important part of the business with a range of passenger and commercial vehicles. The company has over 32,000 Mahindra EVs on Indian roads which have covered more than 270 million kilometers.
With the electric vehicles business at an inflection point and poised to grow exponentially, this realignment will help in providing the requisite resources as well as the direction to realizing targeted growth, M&M said.
“EVs will be the future of the automotive business. To be future ready, we believe that the EVs should be part of the core and mainstream business. This intent to consolidate is a part of our EV strategy which aims to electrify various segments that will popularize e-mobility. We will continue to draw upon our deep understanding of customer needs to bring in exciting new products in the EV space,” said Rajesh Jejurikar, Executive Director, M&M.
Growth in the EV sector in India has picked up pace in the recent past and is only going to accelerate further. EVs are the future of mobility, not only from a cost advantage but also from a sustainability standpoint. M&M is focused on the entire EV ecosystem including last mile connectivity, fleet mobility, personal mobility and research and development, which will fuel growth through technology and innovation.
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