Govt order helps Mahindra EV sales rise 2.5 times to 10,276 units in FY19

Anand Mahindra, Chairman of Mahindra group

Homegrown auto major Mahindra & Mahindra's electric vehicle (EV) sales grew over two-and-a-half times to 10,276 units in 2018-19, riding on the second phase of orders for electric cars from state-owned EESL.

The company, which sells a range of electric vehicles such as sedan e-Verito, van e-Supro, compact car e2o and three-wheeler Treo, had sold 4,026 units in 2017-18, M&M said in an investor presentation.

EESL's phase-II order led to the volume growth, and the deliveries will continue in 2019-20, it said.

M&M along with rival Tata Motors had bagged orders from Energy Efficiency Services Ltd (EESL), which had floated tenders for supply of 10,000 electric sedans for usage by government departments.

In the first phase of the order, EESL had taken deliveries of 500 electric cars; out of which, M&M supplied 150 and the rest by Tata Motors.

M&M said the FAME-II incentives will benefit its EV portfolio and the Treo and e-Supro cargo has already qualified for the benefits under the scheme.

Under the government's Rs 10,000-crore FAME-II to encourage adoption of electric and hybrid vehicles, five lakh e-rickshaws having an ex-factory price of up to Rs 500,000 will get an incentive of Rs 50,000 each.

It also offers an incentive of Rs 150,000 each to 35,000 electric four-wheelers with an ex-factory price of up to Rs 1.5 mn, and an incentive of Rs 13,000 each to 20,000 strong hybrid four-wheelers with an ex-factory price of up to Rs 1.5 mn.

In November last year, the company had launched its first lithium-ion electric three-wheeler range Treo and Treo Yaari to add to its fledgling EV portfolio.

In its investor presentation, M&M said with the "proposed policy change to allow only EV 3W sales from 2025, TREO with best-in-class technology will lead this segment".

It also plans to take Treo pan-India going forward.

The company further said it has signed a memorandum of understanding with TWU (Three Wheels United), a social enterprise providing affordable financing for autorickshaw drivers and Smart E for supplying 1,000 units each of Treo in the coming year.

With an aim to push its EV venture, M&M in November 2018 had opened its electric technology manufacturing hub, set up with an investment of Rs 1 bn in Bengaluru.

With the new facility, its manufacturing capacity for EVs would go up to 25,000 units per annum.

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