Initially, a pilot run will commence in Delhi and Hyderabad with Mahindra deploying hundreds of e2o Plus hatchbacks and eVerito sedans to Uber.
M&M, one of the winners of the Energy Efficiency Services Ltd (EESL) tender for EVs, said it would also bid for the second phase of the tender for 9,500 electric passenger vehicles.
India and China are pushing automakers to build more electric vehicles as they seek to rein in widespread pollution, reduce oil imports, and compete in the growing global market for eco-friendly vehicles.
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In 2016-17 electric auto sales in India stood at 2,000 units, accounting for a meager 0.07 percent of total passenger vehicle sales (3,046,727 units).
Back in April, the then Union power minister Piyush Goyal who is holding Railway portfolio now, had unveiled an ambitious plan that sees India using only electric vehicles by 2030. This latest development comes days after Uber's biggest competitor Ola joined hands with Tata Motors to launch Nano Electric Vehicle as part of its taxi fleet in Delhi/NCR.
Speaking on the collaboration, Pawan Goenka, managing director of Mahindra & Mahindra said, "Electric vehicle adoption is clearly gaining momentum in India".
India's plans however face two serious challenges: inadequate charging infrastructure for electric vehicles and high cost of batteries. The U.S. -based cab aggregator already uses Mahindra vehicles among other brands. As part of the partnership, EVs will be offered to driver partners at competitive prices, while Mahindra Finance will offer financing options. The carmaker is now working on two electric passenger vehicles, including one with its South Korean unit Ssangyong Motor Co, Goenka said.