Mahindra to set up EV facility in Telangana, its second after Pune

Mahindra and Mahindra has signed an agreement with the Telangana government to set up an electric vehicle manufacturing unit in the state. This new facility will be part of Mahindra's overall investment into electric vehicle business worth around ₹10,000 crore. The facility in Telangana will cost the carmaker around ₹1,000 crore and will be the second such manufacturing facility coming up besides the one in Pune, Maharashtra. The Telangana facility will manufacture Mahindra's electric three-wheelers, like Treo, as well as electric four-wheelers too.

According to the agreement signed between the two, Mahindra will invest the fund over eight years. The facility will be located at Mahindra's Zaheerabad facility to develop last mile mobility business. In a regulatory filing, Mahindra said that the facility will also manufacture passenger vehicles like XUV400 electric SUV. The agreement includes Mahindra's appeal to the state government for approvals to expand the existing Zahneerabad plant.

In December last year, Mahindra had announced that it will be opening a new manufacturing facility for electric vehicles in Pune, Maharashtra. The automaker will be investing ₹10,000 crore for the new EV facility, and the investment has been approved under the Maharashtra Government’s industrial promotion scheme for Electric Vehicles. Mahindra has increased funding to speed up its EV plans as it aims to launch as many as five more electric cars in India in the next few years. Mahindra currently offers XUV400 electric SUV, which is part of its new EV lineup for the country.

Earlier in August 2022, Mahindra showcased its new BE brand for EVs in Oxfordshire, UK. The new BE cars mark a new chapter in Mahindra’s electric mobility plans and will be based on the newly-developed INGLO EV platform. The new EV architecture will spawn a host of future electric SUVs under the BE brand, while also bringing new electric SUVs under the ‘XUV’ brand as well.

Watch: Mahindra XUV400: Key things you should know

Mahindra's recent EV push is seen as its attempt to rival Tata Motors, the current EV market leader in India with the lion's share. With Nexon EV, Tiago EV and Tigor EV, Tata Motors leads the EV four-wheeler segment in India with more than three-fourth of the market share.

Check out Upcoming EV Cars in India.