A couple of days ago the Mint newspaper published a story about Mahindra & Mahindra (M&M) working with Ford to develop an electric sedan. Ford would get the technology to build a low-cost electric vehicle from M&M and in exchange M&M would get technology to build a larger electric vehicle for potentially the Indian market. M&M is part of the Mumbai based Mahindra Group conglomerate which is run by Anand Mahindra.
So you ask what low-cost electric vehicle technology does M&M have? The answer is quite simple – REVA, which it bought in 2010. REVA (Revolutionary Electric Vehicle Alternative) was started in 1994 by Chetan Maini and way before Tesla came to the market and made electric cars cool. REVA has since been renamed to Mahindra Electric and under the M&M umbrella.
When I look at the Indian car manufacturers – Maruti, M&M and Tata Motors. Maruti is a one trick pony – build cheap cars that the masses will buy. This is not a knock on Maruti it’s just their playbook that has made them the #1 car seller in India. Tata Motors which is part of the Tata Group is currently embroiled in corporate strategy indecision and I’m sure they have not clear strategy in place for electric vehicles.
That leaves M&M, which has the best chance of being a leader in the electric vehicle space not only for Indian but other markets located near India. The Mahindra Group over the years has acquired several companies that call help it achieve it’s goal. If you look at Tesla, they are leaders because of 3 things:
- Their manufacturing plant in Fremont, California
- Battery technology
For design the Mahindra Group bought Pininfarina SpA in 2015. Pininfarina is the legendary Italian design house that has designed most of the Ferrari’s and one of my favorite American cars the Cadillac Allanté. With Pininfarina in-house they have no excuse not to sketch a car that is out of this world.
Tesla recently admitted that building cars is hard and hence behind schedule with their Model 3 builds. M&M has been building cars and trucks for many years and also purchased SsangYong Motors, South Korea’s 4th largest automobile manufacturer. From a manufacturing perspective M&M seems to have their act together since they have been assembling cars and trucks for many decades.
That leaves Mahindra Electric and their battery technology, which really is the main ingredient in an electric car. I’m assuming their technology is not so strong but with the partnership and knowledge sharing with Ford that should all change. With the partnership and acquisitions it looks like the Mahindra Group is leagues ahead of anyone else in India…now they just need to release a product that will wow the world.