Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 14 (Reuters)-Indian automakers Mahindra and Mahindra Co., Ltd. said on Wednesday that they will invest 100 billion Indian rupees (8.44 billion yuan, $1.21 billion) to build an electric vehicle (EV) production plant near the western city of Pune.

The Mumbai-based conglomerate said the investment had been approved by the Maharashtra government and would be carried out over a period of seven to eight years.

Mahindra, known for its sports utility vehicles (SUV) and jeeps, will produce its upcoming Born electric vehicle (BEVs) series, including its popular SUV--XUV 700 electric version, at the new plant.

Compared with the population, India's car market is small, with electric models accounting for only 1 per cent of total annual sales of about 3 million vehicles. But the government hopes to increase it to 30% by 2030.

The new plant will help Mahindra compete with domestic rival Tata Motors, which dominates India's electric car market with electric models of its Nexon SUV and Tigor hatchbacks. In August, Tata acquired a former Ford plant in the western state of Gujarat after US carmakers withdrew from the Indian market.

Mahindra is in talks with global investors to raise between $250 million (about 1.74 billion yuan) and $500 million (3.48 billion yuan) for its new electric vehicle division, which was valued at $9 billion after its first financing from the British International Investment Corporation (BII) in July.

CTOnews.com learned that Mahindra's first electric SUV is expected to go on sale in January. The carmaker deepened its relationship with Volkswagen in August under an agreement under which the German carmaker will supply electric components to its Indian counterparts.

Mahindra's new plant will be located in one of India's oldest car manufacturing centers, where companies include Volkswagen and Mercedes-Benz, as well as Bajaj Auto and Hero MotoCorp.

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