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Electric division (Mahindra Electric) plans to expand production capacity in last mile mobility business

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