New Delhi: The Board of Directors of Mahindra & Mahindra Limited has granted in-principle approval for consolidation of Mahindra Electric Mobility Limited, a step-down subsidiary of the Company (MEML) into the Company.
According to a company statement released on Friday, the consolidation would categorise EV operations in two focused verticals: Last Mile Mobility (LMM) and Electric Vehicle Tech Centre.
Rajesh Jejurikar, Executive Director, Mahindra & Mahindra Limited said, “Electric vehicles will be the future of the Automotive business. To be future-ready, we believe that the EVs should be part of the core and mainstream business.”
This intent to consolidate is a part of our EV strategy which aims to electrify various segments that will popularise e-mobility. We will continue to draw upon our deep understanding of customer needs to bring in exciting new products in the EV space, he added.
M&M said simplifying the structure will drive improvements through innovation, execution excellence, efficiencies and economies of scale. Additionally, it will unlock shareholder value.
To be future-ready, we believe that EVs should be part of the core and mainstream business. This intent to consolidate is a part of our EV strategy which aims to electrify various segments that will popularise e-mobility.Rajesh Jejurikar, Executive Director, M&M
It will also provide LMM vertical with complete ownership of the value chain for last-mile mobility solutions to drive growth and execution.
Further, it enables EV Tech Centre with the depth of resources and synergy with M&M’s larger ecosystem of product development capability in MRV, North America and Europe whilst exploring partnerships and alliances.
With the electric vehicles business at an inflection point and poised to grow exponentially, this realignment will help in providing the requisite resources as well as the direction to realizing targeted growth.
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