Mahindra, Maruti Suzuki and Tata join hands to develop hybrid and EV components
Sighting a probable demand for hybrid vehicles in India, the top car majors of Indian automotive Industry, Maruti Suzuki, Mahindra and Tata Motors have formed an alliance for investing and developing systems as well as components for electric and hybrid cars. Officials from Mahindra Reva have confirmed that this alliance has been formed to assure common standards and to build a fairly low cost architecture. Moreover, coming together of these home grown auto makers (MSI is an Indo-Japanese auto maker) is expected to win confidence of the customers as far as green vehicles are concerned. Also, this association will most probably be a part of the initiative backed by Indian government to produce EVs and hybrid platforms in alliance with other car makers. This in turn will cut down on the cost; however each auto maker will have their segregate IPs and design of vehicles. The government is also encouraging to develop green platforms for CVs.
The newly formed JV was announced after the government proclaimed the FAME scheme (Faster Adoption and Manufacturing of hybrid and Electric vehicles) under which incentives are offered to the customers opting for EVs and hybrid cars. A part of the grander NEMMP 2020, the government has allotted a budget of Rs. 795 crores to the FAME scheme.