Auto major Mahindra & Mahindra has announced that it is planning to launch an electric version of XUV300 SUV in the January-March quarter of the current financial year. Besides, the company will invest ₹1,900 crore till FY24 for creation of additional production capacity for XUV700 and other models in an effort to reduce the waiting period which has stretched to two years on certain models. The company, however, did not specify the additional capacity that will be created.

According to the company, it is sitting on an order book of 1,78,000 units, including 78,000 for the XUV700.

M&M is able to meet only half of the demand for the XUV700.

Rajesh Jejurikar, Executive Director, M&M said the additional capacity will help the company in becoming the largest player in the SUV segment by 2025.

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M&M is planning to launch the all-new Scorpio on June 27 with production of the model having already started. According to Jejurikar, the company is aiming for a better supply-demand ratio for this vehicle compared to that of XUV700.

M&M has lined up a capital expenditure (capex) of ₹17,000 crore across segments between FY22 and FY24. This includes ₹1,900 crore for the automotive segment.

M&M’s total additional capex between FY22 and FY24 is ₹3,300 crore for automotive (including EV) and farm equipment, taking the total capex for the two segments to ₹15,300 crore for the same period.

Electric vehicle

In addition to new generation internal combustion engine-powered vehicles, M&M is simultaneously working on electric vehicles. The company will unveil its electric vehicle vision in mid-August which will include models based on born-electric platforms.

The company joined hands with Volkswagen for sourcing critical components like electric motors, battery system components and battery cells.

In addition, the electric version of the XUV300 will be launched in the final quarter of the current financial year. At 4.2 meters in length, the electric version will be longer than the current ICE-powered XUV300.

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