Mahindra & Mahindra is ready to take on Tata Motors in the small electric truck industry after securing a commanding lead in the small commercial vehicle market with its pick-up trucks. Senior management announced during the Q1 earnings press conference that the company, which is well-known for its Supro and Jeeto models, is getting ready to introduce its electric micro truck in the upcoming months.
Their electric light commercial vehicle (E-LCV) lineup will not be released until the government provides more information on the future Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME III) program.
Mahindra & Mahindra’s Executive Director and CEO (Auto and Farm Sector), Rajesh Jejurikar, stated that the company had prepared a number of models in the sub-2-ton category that were ready for release. He clarified that they are prepared with a number of choices and would launch as soon as they obtain official instructions on the impending FAME scheme. They are waiting to finalize their launch strategy until they see what FAME III will include, as the existing scheme does not allow for four-wheelers.
Jejurikar emphasized that e-LCVs are essential for enabling mass rapid transit and progressing the decarbonization of the economy and that the overall cost of owning one is more favorable when compared to internal combustion engine (ICE) alternatives.
Light electric trucks, which were also disregarded in earlier FAME programs, are not eligible for demand incentives under the current Electric Mobility Promotion Scheme (EMPS), which only provides incentives for electric two- and three-wheelers.
The goal of Mahindra’s future E-LCV line is to gain market share in the rapidly expanding e-commerce and on-demand delivery service sectors. According to Jejurikar, Mahindra has switched from employing NMC battery chemistry to LFP, which offers higher affordability and energy density, as a result of subsidies being cut from Rs 15,000 per kWh to Rs 5,000 per kWh under the current EMPS.
