Indian automaker Mahindra and Mahindra is making a significant push into the electric vehicle (EV) market with a proposed INR 1,000 crore ($138 million) investment in a new manufacturing facility in Telangana. The facility will be located in the Zaheerabad plant in Medak District and will focus on the production of electric three- and four-wheelers, including cargo and passenger vehicles, with the investment, spread over eight years.
The company has already signed an agreement with the Telangana government for approval to expand the Zaheerabad plant, and the size of the investment is expected to fall under the “Mega Projects” category of the state’s “EV Investment Policy.” Mahindra’s move comes as the Indian government plans to increase the share of EVs in the country by the end of the decade.
According to the company, this investment will be “The proposed expansion would mainly be towards setting up of manufacturing facility including development and production of electric 3 and 4 wheelers pertaining to Last Mile Mobility business at the current plant situated at Zaheerabad
Last December, Mahindra announced plans to invest INR 10,000 crore in a new EV manufacturing plant near Pune, as the company seeks to compete with Tata Motors, the current dominant player in India’s EV market. With this latest investment, Mahindra is signaling its intent to become a major player in India’s EV sector.
Mahindra and Mahindra’s investment in EV manufacturing is in line with the growing trend towards cleaner and more sustainable modes of transportation. As countries around the world look to reduce their carbon footprint and move away from fossil fuels, the demand for EVs is expected to continue to rise. With this new facility, Mahindra is positioning itself to capture a significant share of this growing market and to meet the demands of an increasingly environmentally conscious consumer base.
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