Automaker Mahindra & Mahindra will invest in building long-range electric vehicles, high-power battery packs and power trains in an effort to boost green car sales, senior company executives said on Wednesday.
Mahindra plans to ramp up production of its electric vehicles to 5,000 units a month by mid-2019 from 400 units currently and will invest in making batteries that enable cars to run for 400 kilometres on a single charge, managing director Pawan Goenka said.
He did not disclose the investment Mahindra would make.
The announcement comes days after a government think-tank released a policy blueprint favouring electric vehicles, which could influence a new green car policy.Here's what Angela Merkel has to say about EVs!
"We said we will be waiting for the vision for electric vehicles ... We hope we will be the pioneers in terms of the people who promoted electric vehicles use in India," Goenka told reporters, adding that the company is working with the government on framing new policies for electric vehicles.
Despite being the country's sole electric passenger vehicles maker, Mahindra has struggled to boost sales due to high battery costs of around $270 per kilowatt hour, a dearth of charging stations and low buyer interest.
"There is a viability gap ... If we can reduce cost by 20 percent then we can ramp up faster," he said, adding that only substantial cost reduction would make electric vehicles commercially viable.
The company currently makes batteries that allow cars to run between 100 and 140 kilometres on a single charge. It is working to increase the range to 200 kilometres first and then to 400 kilometres, said Babu.
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