The first electric SUV from Mahindra & Mahindra will use batteries sourced from LG Energy Solution.
The vehicle in question is known as the XUV400 and will reportedly debut in production guise in September. It will share parts with Mahindra’s smaller XUV300 and the SsangYong Tivoli and be positioned as a rival to the Tata Nexon EV.
Speaking with Reuters, an unidentified source suggested that the first deliveries of the XUV400 will begin between the fourth quarter and January 2023. The size of LG’s supply deal with Mahindra & Mahindra has not been confirmed.
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The two companies have been working together for quite some time. In 2018, Mahindra and LG Chem signed a deal to collaborate on the supply and technology of lithium-ion based batteries that use nickel, cobalt, and manganese chemistry.
Mahindra has big EV ambitions and last year, spun its EV business into a separate unit. The unit is now valued at approximately $9.1 billion and recently raised an additional $250 million from British International Investment.
The Indian car manufacturer will follow up the XUV400 with four additional electric vehicles by March 2026. It believes electric vehicles will account for 20 to 30 per cent of its total SUV sales by March 2027, equating to as many as 200,000 EV sales annually.
Sales of electric vehicles only account for 1 per cent of all vehicle sales in India but the government is pushing for this to swell to 30 per cent by 2030.
Word on Mahindra’s supply deal with LG comes just a couple of months after the Indian automaker inked a deal with Volkswagen to use components from the MEB architecture for its ‘Born Electric Platform.’ This is expected to include electric motors, battery system components, and may also include battery cells.
