The Board of Directors of Mahindra & Mahindra Limited has granted in-principle approval for the consolidation of Mahindra Electric Mobility Limited (MEML), a step-down subsidiary, into the company.
The consolidation will categorize EV operations into two focused verticals: Last Mile mobility (LMM) and Electric Vehicle Tech Centre, the company said in a statement.
Rajesh Jejurikar, the executive director, Mahindra & Mahindra Limited, said, “Electric vehicles will be the future of the automotive business. To be future-ready, we believe that EV 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.
Simplifying the structure is said to drive improvements through innovation, execution excellence, efficiencies, and economies of scale. It will also unlock shareholder value.
It will provide the LMM vertical complete ownership of the value chain to drive growth and execution. It will also enable the 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 while exploring partnerships and alliances.
With the electric vehicle business at an inflection point and poised to grow exponentially, this realignment will help provide the requisite resources and the direction to realize targeted growth.