Although quite optimistic about electric vehicles, Mahindra & Mahindra (M&M) believes internal combustion engine (ICE) models will continue to be a significant part of its product portfolio even five years from now.

“By 2027, ICE volumes for us will be higher than today, even with EV penetration of 20-30%. Because that’s going to be the growth of the overall market and the growth of the market share we have,” said Rajesh Jejurikar, executive director, automotive and agricultural sectors, M&M, during a panel discussion in London.

“ICE will be a very important part of our portfolio even five years later. We don’t need to work on new platforms for ICE now. The ones we have will cover us for 8-10 years. But we will work on new products. That we will continue for a long time. ICE is at least another 10 years away,” he added.

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The company opened an electric vehicle design studio, Mahindra Advanced Design Europe (MADE), in Oxfordshire, UK, on ​​Independence Day. It also unveiled five electric SUVs under two electric vehicle brands – XUV and BE – on the site. Based on Mahindra’s new INGLO EV platform, which uses components from Volkswagen Group’s Modular Electric Drive Matrix (MEB) platform, the electric SUVs are XUV.e8, XUV.e9, BE.05 , BE.07 and BE.09. Among them, the first to be launched will be XUV.e8 in December 2024.

Mahindra expects electric SUVs to make up 20-30% of its overall SUV portfolio by 2027, with volumes of 15,000-17,000 units per month and 200,000 units per year.

Earlier this year in July, Mahindra and UK development finance institution British International Investment (BII) signed a binding agreement to invest up to Rs 1,925 crore each in a wholly owned subsidiary of SUV maker Thar and Scorpio which will be newly incorporated. and focus on manufacturing electric passenger vehicles.

Valued at Rs 70,070 crore, the total capital injection for this is expected to be around Rs 8,000 crore ($1 billion) between FY24 and FY27 for the planned product portfolio.

“The INGLO platform will be fully owned by the new company. The XUV.e brands, including XUV400, will belong to the new company. The BE brand will be fully owned by the new company,” Jejurikar said. The XUV brand will be licensed to the new company for use in electric models.

“Over the next few years, manufacturing subcontracts will be done by Mahindra & Mahindra for the new company,” he said.

Jejurikar said the company showed all of its strategy to BII. “They knew we were talking about these products. At that time we had decided that we were going to have a different brand called BE. So it was all shared. The assessment was their confidence that with a strategy like this, in five years, 20-30% of Mahindra’s portfolio can easily be converted into SUV EVs,” he said.

Mahindra will also export the electric SUVs to different countries. However, the company has yet to decide on the markets.

“Right now what you are seeing is right-hand drive supply. And that will come from a regulatory requirement to meet the needs of all right-hand drive markets around the world,” Jejurikar said. .

Talking about the charging infrastructure, he said that no actor can create it. Charging infrastructure will depend on what governments, startups and several individual companies strive to create, he added.

The journey for history was sponsored by Mahindra & Mahindra