Mahindra & Mahindra will research hybrid technology and spend $1.44 billion in the EV branch

The XUV400 is the only model that Mahindra, the third-largest EV manufacturer in India, presently offers, but it plans to introduce a new lineup of EVs the following year.

Even though it is now also actively examining hybrid technology, Indian manufacturer Mahindra & Mahindra said on Thursday that it will spend $1.44 billion over the next three years in its electric vehicle (EV) sector to accelerate growth.

The XUV400 is the only EV vehicle that Mahindra, the third-largest EV manufacturer in India, presently offers, but it plans to introduce a new lineup of EVs early in 2019.

The automaker, best known for its sport utility vehicles (SUVs) called "Scorpio" and "Thar," projects that by 2027, electric SUV sales would account for 20% to 30% of total SUV sales.

Anish Shah, Managing Director of Mahindra, said during a press conference held after the company's results that "we feel good about the focus on EVs at this point in time."

However, "We'll be prepared for it if (hybrids) are needed. We'll transition toward hybrid technology much more quickly if there are substantial advancements that make it much more similar to an electric vehicle ".

Shah's remarks coincide with the growing strategy of automakers to broaden their focus beyond electric vehicles. Less than a month ago, Reuters revealed that the Hyundai Motor Group intended to introduce its first hybrid vehicles in India as early as 2026.

In India's fiscal year 2024, sales of passenger vehicles overall were made up of 2% by both EVs and hybrids, which combine an electric motor and gasoline engine.

Mahindra exceeded quarterly profit projections earlier in the day thanks to consistent sales of its SUVs.

The company's stock increased by 4% to a record high before retreating slightly to end the day up 3%.

$1 is equal to 83.4711 Indian rupees.