Mahindra opens ₹4,500 crore EV facility at Chakan plant; aims for 90,000 annual electric vehicle production by 2025, a keystone of Mahindra’s strategy.
Mahindra & Mahindra today inaugurated a state-of-the-art assembly facility for electric vehicles and batteries at its Chakan plant in Pune. The significant ₹4,500 crore investment forms part of Mahindra’s ambitious ₹16,000 crore expenditure plan for the years 2022 to 2027. This facility will be the keystone of Mahindra’s strategy to conquer the expanding foothold of the electric vehicle market in India.
Strategic Location
The new facility is placed within the large Chakan manufacturing plant of Mahindra, recognized as one of the largest greenfield projects in India, and is more than a factory. The focus extends beyond the complete act of manufacturing; sustainability is combined in the design as it, as a concept, practices water positives and is powered completely by renewables. This is also reflective of Mahindra’s concern about adhering to environment-friendly practices.
Automated Environment
The facility for manufacturing electric vehicles in Chakan is an automated ecosystem with more than 1,000 robots and several automated transfer systems. It has an area of around 88,000 m² and is supplied with state-of-the-art technologies:
- Automated Press Shop: High-speed presses to make efficient vehicle components.
- AI-based Body Shop: It uses Artificial Intelligence for production processes and accuracy for body shop operations.
- Robotic Paint Shops: Uses robots to improve the efficiency of paint application and quality.
IoT Integration
One exceptional facility is the IoT-based “nerve centre” which monitors real-time operations in the facility. This center gives insights into production processes with full traceability at the operation level to enable better overall efficiency. Mahindra can now pinpoint any emerging issue during times of manufacturing and address it at the earliest.
Compact Manufacturing
The packing of batteries is a section of the plant that employs compact manufacturing lines based on patented processes for lean module assembly. This brings forth the possibility of evoking production efficiency without compromising the high standards. This includes:
- Indigenous Development: The facility is designed to integrate Indigenous manufacturing processes into the facility, owing to Mahindra’s commitment to being self-reliant in battery technology.
- Industry 4.0 Technologies: The introduction of automation and data exchange itself even improves both productivity and efficiency.
Quality Assurance
Quality assurance is considered thoroughly in the assembly of batteries. The facility brings testing from heavy-end-to-light testing such as:
- Multilayer End-of-Line Testing: To simulate real-world conditions and ensure the reliability and performance of batteries.
- IP67 Ingress Protection: Attainment is standard which says that dust or water cannot enter batteries, and protects more durability.
- Temperature Monitoring in Real Time: Mobile one which is active in real-time. The temperature will be abnormal, and at that time will ensure safety as well as performance.
The plant has a patented pallet design for insulation and geometry accuracy along with hidden cell terminal welding for enhanced connectivity and performance. Another highlight is the no-fault-forward strategy that clearly accentuates Mahindra’s commitment to product quality and reliability.
Ready for Electric SUVs
The facility will be dedicated to producing Mahindra’s soon-to-be-launched Electric-Origin SUVs, including the much-anticipated BE 6 and XEV 9e. Such vehicles belong to a Mahindra strategy designed to utilize the growing EV market in India, covering the rising consumer demand for sustainable transportation.
Production Capacity
The Chakan plant has been designed to be able to support the rollout of flagship Mahindra EVs by enabling the production of 90,000 electric vehicles a year. The production capacities clearly show the ambition behind Mahindra’s bet on becoming a key player in the electric vehicle segment and the consequent demand that consumers will have now for greener alternatives.
Commitment towards Inclusion
Diversity Goals for Gender: Not only will the Chakan facility use state-of-the-art tools and techniques but it will have the same money, time, and support as the other facilities to have women hold a 25% gender diversity ratio as part of Mahindra’s commitment to advancing workforce balance in diversity throughout society.
Rising Demand for EVs
The facility is being launched at a time when demand for electric vehicles in India is on an upward swing. As per industry estimates, the Indian EV market will grow considerably in the coming years as consumers seek more and more green mobility solutions.
Price Adjustments
In response to the inevitability of inflation and rising commodity prices, Mahindra has announced an increase of up to 3% on its prices for sport-utility vehicles and commercial vehicles for January 2025. This is a global change for an automobile manufacturer in a time when all manufacturers are attempting to survive the attendant measures of holding profits to par with the behavioural change of the market economy.
Industry Insights
As per the FADA reports, the retail sales by passenger vehicles in the coming 2024 are expected to be up by 5.18% than the previous years exceeding the 40.73 lakh mark. This is the first time when the auto industry of India has witnessed that car sales have crossed the four million mark at a national level.
Market Performance
In addition to that, there has been an increase in the retail sales of two-wheelers by 10.78% on an annual basis to stand at 18.9 million units. However, it is lower than the pre-pandemic high of about 21 million units, indicating that there are still challenges that the market faces despite better supply chain conditions and a strong rural demand.
Mobility Future
Mahindra is now making giant steps towards the definition of the future of mobility in India with the commissioning of its new EV manufacturing and battery assembly facility at Chakan. With advanced technology and sustainable practices in the EV and beyond sectors, Mahindra not only aims to be the most sought-after company in electric vehicles but will also seek to positively contribute to India’s environmental goals.
Looking Towards the Future
It will be interesting to see how such futuristic developments at Mahindra will have their effects on future automobile landscapes in India and beyond as the company advances with the rollout of its Electric Origin SUVs from this state-of-the-art facility. With innovation and sustainability, Mahindra is well-prepared to take on all the challenges and opportunities that the dynamic automobile industry presents.
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