Mahindra Electric expects robust sales growth

Mahindra Electric expects electric vehicles to post robust sales. The company aims to achieve this by foraying into mobility solutions. M&M has seen subdued growth in its passenger vehicle segment and looks at improving the situation.

Mahindra Electric has inked a pact with self-driven car rental firm, Zoomcar, for providing a fractional ownership programme. This is expected to result in a three-fold jump in electric vehicles' sales for Mahindra Electric, a M&M Group's subsidiary.

Electric cars' cost is currently high, which is abstaining retail buyers from entering into this segment. 

Mahindra Electric has launched small electric car, E2O plus; a sedan, eVerito; and a passenger and cargo vehicle, eSupro, and has achieved 1100 unit sales last year.

M&M as a group has seen subdued growth in passenger vehicles in last year, which has impacted revenue generation. The launch of new electric vehicle expects it to generate a stable revenue stream in PV segment. Changing emission norms from time to time is also expected to impact PV manufacturers' margins. However, electric vehicles don't seem to face any such changes frequently, keeping their margins intact with rising volumes.