The company aims to grow in the electric sport utility vehicle (SUV) segment by collaborating with global companies. Currently, it is in partnership with Volkswagen. The latter will supply MEB (modular electric drive matrix) electronic components for M&M’s new platform, INGLO.
“Leveraging on the components of the Volkswagen – MEB platform, it will come with its own advantages, but the company will need to crystallize a localization plan," said analysts at Nomura Financial Advisory and Securities (India) in a report on 16 August.
All the five electric SUVs, which M&M plans to launch under the brands XUV and BE, will share the common platform, INGLO. Four such SUVs are expected to be launched between 2024 and 2026. The automaker aspires its electric SUVs penetration to reach 25% by 2027.
“It is encouraging to see the management planning well ahead with clearly laid-out timelines for product launches, in our view. The vision of the platform and products is encouraging. It improves visibility on the future potential of the company," added the Nomura report.
M&M is also looking for collaboration in other aspects of electric vehicle business such as cell manufacturing, charging and energy solutions. “While we have been positive on M&M’s SUV vision, the execution over the past two years has remained above our expectations. If execution on electric vehicles is similar, there is scope for significant value creation, in our view," said analysts at Nomura.
