Mahindra & Mahindra, Tata Motors and Maruti Suzuki have teamed up to invest as well as develop components and systems for electric and hybrid vehicles. The three companies are working on developing components and systems to ensure common standards, that in addition will help them drive down costs and is expected to eventually lead to lower cost of ownership of these vehicles, Mahindra Reva CEO Arvind Mathew said on the sidelines of an event.
Although, the three automajors are also working on common standards for all components and systems, but each of them will have their own software IPs. The three Indian automakers came together after the Centre announced in April this year, the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, which offers cash incentives for those who want to opt for hybrid and electric vehicles. FAME has allocated a budget of Rs 795 crore for the scheme for two years as part of the first phase of the National Electric Mobility Mission Plan.
According to this scheme, customers opting for the hybrid or the electric vehicles will get the incentive in order to lower the cost, while the manufacturer can claim the incentive from the government. The incentive varies with the segments like for electric sedan the incentives range between Rs 13,000 and Rs 1.38 lakh, while for the light commercial vehicles, it ranges between Rs 17,000 and Rs 1.87 lakh.
We believe this collaboration between the Indian automakers is expected to promote the acceptance of green vehicles by driving costs down and the association is most likely to be a part of the Indian government’s initiative to develop hybrid and EV platforms in association with automakers.