- 28 Dec 2021
- ICICIdirect Research
ELECTRIC DIVISION (MAHINDRA ELECTRIC) PLANS TO EXPAND PRODUCTION CAPACITY IN LAST MILE MOBILITY BUSINESS
M&M - 3073 Change: 1.40 (0.05 %)News: According to media sources, Mahindra Electric plans to double its production capacity and introduce about six new vehicles in its last mile mobility business (primarily electric 3-W). It is likely to invest ~Rs.300 crore in this division i.e. ~10% of its total commitment towards electric vehicle business.
Views: The company is expected close the year i.e. FY22E with ~14,000-15,000 units in the electric 3-W space and expects volumes to double in FY23E while from a three to four year perspective it aims to clock ~1 lakh units in this segment. Currently, the company is the market leader in the electric 3-W segment and expansion in capacity in this domain bodes well amid aggressive push by central and state governments towards electrification.
Impact: Positive