Mahindra and Mahindra (M&M) Ltd is planning electric vehicles for the “last-mile mobility” segment — three-wheelers for passenger travel and cargo, and cargo four-wheelers — as the company sees a faster EV adoption in this segment.

“We have aggressive growth plans in this segment as electric three-wheelers and four-wheelers (cargo) is growing at a much faster rate than the electric passenger vehicle segment,” said Rajesh Jejurikar, executive director, auto and farm sector, M&M.

The company has in a regulatory filing announced an investment of Rs 1,000 crore over a period of eight years in extending its facility at Zaheerabad in Medak district in Telangana where it manufactures tractors.

Mahindra will also invest Rs 10,000 crore investment in Pune for manufacturing a plant for its electric SUVs.

The company said 20 per cent to 30 per cent of its SUV sales will be from electric vehicles by 2027. “Electrification in the last mile mobility sector has really caught on. It is happening by word of mouth. And we believe this segment has great growth capacity. Passenger vehicle electrification stands at just 1-2 per cent of the industry and it is at a very nascent stage but three-wheeler electrification is more than 50 per cent,” said Anish Shah, MD and CEO, M&M Ltd.

According to the latest data from the Federation of Automobile Dealers Association (FADA), the number of electric three-wheelers sold in January stood at 32,911 units compared with 18,973 units in January 2022. Mahindra sold 1,274 units of electric three-wheelers compared with 536 units in January 2022.

According to its website, Mahindra sells the Treo, Treo Yaari, e Alfa Mini in the electric three-wheeler passenger segment and the Treo Zor, Zor Grand and E Alfa Cargo in three-wheeler cargos.

It is yet to have any electric four-wheeler cargo vehicle. This is where the electric Bolero, Jeeto and Camper pick-up is expected to come in.