The company, which currently sells e2oPlus and eVerito EVs in the passenger vehicle segment, has set up an electric technology manufacturing hub in Bengaluru with an investment of Rs 100 crore.
M&M is also expanding its Chakan (Pune) plant at an investment of Rs 450 crore to enhance its EV portfolio.
“With the announcement of FAME II, we would now accelerate that investment and try and launch our products as quickly as we can,” M&M Managing Director Pawan Goenka told PTI.
M&M has earmarked a total outlay of Rs 900 crore for EV vertical. Apart from Rs 450 crore investment in Chakan, the company is also putting in another Rs 350 crore for a new R&D centre in Bengaluru.
“We have started establishing a plant in Chakan in Pune, and we will just accelerate that investment now to bring it as fast as possible,” Goenka said.
With now FAME II scheme in place, he said, the company expects to get higher volumes enabling it to localise its products further.
“The main thing is that we need to do more investment for localising so that we are able to promote Make in India through electric vehicles,” Goenka said.
The company would look at localising the motor which goes into EVs, the power electronics and the battery, he added.
In the 2018 auto show, M&M had unveiled six electric concept vehicles and models. The company had displayed e-KUV100, an electric version of its compact vehicle KUV100; UDO, a concept two-seater electric mobility pod; ATOM, a last-mile urban mobility concept vehicle; and a lithium ion battery-powered three-wheeler Treo that has already hit the markets.
It had also displayed e-COSMO electric bus and e2o NXT, which is a refreshed version of its electric small car e2oPlus. In the CV space, the company sells electric products like eSupro, Treo and e-Alfa Mini three-wheelers. Last week, the Union Cabinet cleared a Rs 10,000-crore programme under the FAME-II scheme.
The scheme will be implemented over a period of three years with effect from April 1, 2019. It is the expanded version of the present scheme FAME India I (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) which was launched on April 1, 2015, with a total outlay of Rs 895 crore.
The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentive on purchase of electric vehicles and also by way of establishing necessary charging infrastructure for EV.