Headquartered in Mumbai, Auto Major Mahindra & Mahindra is on a roll and sees a smart revival of its auto industry.
In fact, the company has reconsidered its cash deployment plans, with an additional provision of Rs 1,600 crore for automotive CAPEX and Rs 1,125 crore for Mahindra Electric Automotive, the electric vehicle division of the company. In addition, the company has also planned an increase of Rs 500 crore for its auto and agriculture division, while a reduction in the Group’s investment, revenue generation and partnerships will lead to rationalization.
With this, Mahindra’s capital expenditure has been changed from Rs 15,075 crore previously announced to Rs 15,900 crore. The review to the automotive segment will mainly focus on improving capacity to meet customer demand and comply with regulatory requirements.
In the field of electric vehicles, this will focus on product development.
Recently, the Minister of Road Transport and Highways (MoRTH), Nitin Gadkari, asked automotive stakeholders to start working on BS7 (Euro 7 equivalent) emission standards. It is important to note that at this point in time, no country in the world has released the technical specifications that define the same.
Responding to a question about plans for BS7 emissions standards, Rajesh Jejurikar, Executive Director – Auto & Farms Sector, Mahindra & Mahindra said that no technical specifications and regulations have been notified by the government at present and hence the same has not been initiated. The company would continue to focus on expanding its IC motor offerings along with its electrification strategy.
But there are currently no significant investments planned for BS7, and any CAPEX direction will only be decided once there is some clarity on the roadmap.