The electric arm of Mahindra & Mahindra, Mahindra Electric, wants to manufacture and sell electric vehicles in China. For this, it wants to launch a joint venture in China. Mahindra has been selling EVs in India and the United Kingdom, and also supplies parts to other EV makers.
Denying that the company is already in talks with potential partners in China, CEO of Mahindra Electric, Arvind Mathew, told Bloomberg, “We are continuously looking at the Chinese market to build up scale,” and added, “The Chinese market is an attractive market as it has all range of electric cars, including two-wheelers, three-wheelers, cars and buses.”
To be able to avail tax benefits on EVs in China and bypass the 25 per cent custom tax that is levied on imported cars, Mahindra needs to have a local manufacturing partner in order to set foot in China. But once successful, the joint venture will face off against more than 200 Chinese companies, backed by billionaires, which have capitalised on the swelling demand and increasing support from the government.
Chinese authorities have identified ‘new-energy’ vehicles, including all electric, plug-in hybrid and fuel-cell vehicles, in order to promote their goal of energy security and pollution control. They have set a target of at least five million EVs on roads by 2020 and are doing everything in their control to achieve it.
Talking about the company’s electric portfolio, it currently sells the newly launched e-Veritosedan in India along with the e2o small car that it had also launched in the United Kingdom earlier this year. The carmaker had also revealed in July that it will launch no less than two new products by the end of this year. The first of them is set to be the e2o Plus four-door small car that was teased this month.
Source: CarDekho.com
