M&M plans to establish EV manufacturing unit in Kerala

India's fourth-largest carmaker, Mahindra and Mahindra (M&M), is in talks with the Kerala government to establish an electric vehicle (EV) production facility in the southern state, which is noted for having a higher EV penetration rate.

If the negotiations are successful, it might strengthen the state's industrial sector in advance of the next Global Investment Meet (GIM) in February of next year.

Kerala has the highest percentage of electric vehicles (EVs) in the country at 5.2%, followed by Delhi at 3.2% and Karnataka at 3.1%, according to a BNP Paribas analysis. Additionally, the state has the greatest rate of adoption of electric two-wheelers (13.5%), surpassing Karnataka (11.5%), Maharashtra (10.1%), and Delhi (9.4%).

Kerala has the geographical advantage of having a Vizhinjam-like container port. Citing Kerala Industries Minister P Rajeeve, Business Standard reported, “As far as EV sector sales are concerned, Kerala is number one. We have already created an ecosystem for charging. Now, we have a state-owned firm that has produced an electric auto in the country called Kerala Automobiles. We are also in discussions with some companies to start manufacturing units.”