Electrification in last-mile mobility now at inflection point: MEB head

Suman Mishra, CEO, Mahindra Electric Mobility attributes development to Fame II policy, which has turned out to be a game-changer and makes the total cost of ownership neutral for customers

The electrification in the last mile mobility segment (including two- and three-wheelers) has reached an inflection point, said Suman Mishra, chief executive, Mahindra Electric Mobility (MEB). “It was 2 per cent last year, 7 per cent this year and would easily reach 30 per cent penetration level by 2025 if there are no major changes,” said Mishra.  

She attributed it to FAME II policy, which has turned out to be a game-changer and makes the total cost of ownership (TCO) neutral for the customers. “Now with the state subsidies, increased fuel costs and lower cost of EVs, TCO of an e-three wheeler is better than an ICE- powered three-wheeler.” To take advantage of the rapid electrification in the last mile, Mahindra has lined up “significant investment in capacity and products,” she said.

On Thursday, MEB, part of the Mahindra Group, announced the launch of its e-three wheeler Treo in Maharashtra at ₹2.09 Lakh (ex-showroom, Mumbai) including FAME-II, state and early bird subsidies. The Treo claims to be the number one electric 3-wheeler auto in India with a 67 per cent market share. On an average Mahindra has been selling 1500 to 2000 units of the Treo every month.

It can save an owner up to Rs 200,000 in five years, it claims offering superior performance, with the highest power of 8 kW and best-in-industry slope climbing ability of 12.7 degree.

The overall e-three wheeler market, which almost collapsed during the lockdown, is back to 60-70 per cent of the pre-Covid phase. But the passenger carrier segment still lags at 30 percent of the pre-Covid phase, said Mishra. Multiple use cases in the retail, e-commerce segments have helped the e-cargo offerings recover much faster, she added. Mahindra is also offering attractive finance and exchange schemes for the Treo.

For the first eight months of the current fiscal, the e- three wheeler segment has declined to 64,000 units over 81,000 units in the corresponding period last year, according to the Vahan Dashboard data of the Ministry of Road Transport & Highway. The dip is largely attributable to the Covid-19-induced lockdown.