Mahindra and Mahindra

M&M sales of low-carbon vehicles have been very low. In 2018, 0.5% of M&M sales were low-carbon vehicles, falling to less than 0.1% in 2020. This doesn’t include M&M’s three-wheeler electric vehicles (EVs), of which 13,636 were sold in 2019 and 5,391 in 2020. These were not included in our assessment, as this focused on four-wheeler light duty vehicle sales. The company is increasing its ambition aiming to have 30% of sales coming from EVs by 2030 and plans to launch two new EV models. However, M&M should further increase its ambition with its 1.5°C pathway expecting 64.5% of sales in 2030 coming from low-carbon vehicles.

M&M has board level oversight of climate change and the executive director on the board has expertise in the low-carbon transition. The company’s climate strategy has several strong elements, including science-based targets, a commitment to double energy productivity by 2030 and reach 50% renewable electricity use by 2025, up from 5% in 2020. M&M also uses an internal carbon price of 10 USD per tonne and is investing USD 7.75 million (INR 500 million) in upgrading its Chakan plant to manufacture EVs. However, in the 2020-21 financial year alone, the company’s capital expenditure was USD 446 million (INR 33.12 billion), so the company should publicly commit more resource to low-carbon vehicle production. M&M has completed scenario analysis against 2°C scenarios, but can complete further analysis against a 1.5°C scenario and publish the results publicly in value-at-risk terms.

As increasing its low-carbon vehicle sales will be the key action for M&M to move closer to a 1.5°C pathway, the company should set out a clear strategy, including promotional initiatives and customer incentives, to market its electric vehicles. M&M does have a Formula E team that helps promote EVs. Additionally, the company has launched an e-mobility app, Nemo life, to help reduce barriers to EV adoption such as range anxiety. M&M’s partnership with Amazon India to provide electric delivery vehicles is promising and the company should develop a clear offering to commercial customers to help it scale its low-carbon vehicle sales.

M&M has set science-based targets. It committed to reduce scope 1 and 2 emissions intensity by 47% from 2018 to 2033, a target which is aligned with a well-below 2°C scenario. It also committed to reduce scope 3 emissions intensity by 30% from 2018 to 2033.

M&M is aiming for at least 30% of its sales to be EV by 2030 and will launch two new EV models. It aims to increase renewable electricity use from 5% in 2020 to 50% by 2025, as well as doubling energy productivity by 2030 compared to 2008.

In 2020, less than 0.1% of M&M’s four-wheeler vehicle sales were low-carbon vehicles. The company spent USD 292 million (INR 21.64 billion) on research and development in 2020, but did not disclose how much went to low-carbon technologies. It is selling Ssangyong, its South Korean SUV subsidiary.

M&M’s scope 3 emissions intensity in 2015 was 88.2 grams of CO2 per passenger kilometre (gCO2/p.km) and was 88.6 gCO2/p.km in 2020. Similarly, its scope 1 and 2 emissions intensity saw little improvement, going from 0.196 tonnes of CO2 per vehicle produced in 2015 to 0.192 in 2020.

The company’s actions from 2015 to 2020 have not led to meaningful reductions in emissions or increase in low-carbon vehicle sales. M&M’s plans to reduce emissions would benefit from greater capital expenditure commitments to scale electric vehicle manufacturing.