Mahindra & Mahindra invests US$35.7M in two new laboratories
INDIA – Mahindra & Mahindra, an Indian automobile manufacturing company, has unveiled over Rs 300 crores (US$35.7m) development test facilities—Passive Safety Lab and Advanced Cell Research Laboratory & Battery Proto Build Shop.
The labs were launched to test the safety of sports utility vehicles products at various load cases and for research on cell technologies.
The Passive Safety Lab or PSL “can perform with Bharat New car assessment program along with Australian & European New Car Assessment Program”, the company said.
On other hand, the Battery & Cell Research Lab will focus on research and analysis of battery cells, modules and packs “aiming to achieve enhanced energy efficiency, performance, lower charging time and longevity”.
The opening of the lab is a prominent step in the company’s foray into clean mobility solutions, M&M said, adding that the lab is geared for destructive and non-destructive cell related tests to be conducted in-house.
The labs are at a close proximity of 55 km from the Mahindra Research Valley where all the Mahindra SUVs are developed from scratch.
“These labs will complement Mahindra Research Valley where our products are engineered and Mahindra SUV Proving Track, where cars are tested in variety of terrains and simulations, making it one of the most unique places to develop vehicles that are proudly conceived and built in India,” Velusamy R. said.
The launch coincides with plans for the acquisition of a 50% stake in Skoda Auto Volkswagen’s Indian business.
According to Money Control, talks between the two are in the final stages of the deal, which is likely to be signed in the coming weeks. Skoda Auto Volkswagen is a German auto giant.
The deal could be significant for both Mahindra & Mahindra and Skoda as the agreement will help both companies better utilise their existing production capacity. Both Mahindra & Mahindra and Skoda have major manufacturing plants at Chakan in Pune.
The acquisition will give Mahindra & Mahindra an entry into Skoda Auto’s hatchback and sedan models, a segment where Mahindra has not had much success so far.
The deal could be especially important in the production of electric vehicles, as the two companies already have an agreement for an electric car platform.
The two companies are also discussing whether Mahindra & Mahindra will use Skoda Auto’s platform to launch co-branding and co-labelling products through this acquisition.
Skoda Auto has been struggling in the Indian market for the past few years. In FY2024, the company’s net profit fell by 69 percent to just Rs 96 crore.
Low domestic sales and increased raw materials costs were the main reasons behind this, which has forced Skoda Auto to find a partner in the Indian market.