MAHINDRA EVS SUSTAINABILITY CHALLENGE.

Description The purpose of this task is to propose a leading edge, strategic innovation solution (offering) to address a corporate challenge in the area of corporate social responsibility, OR sustainability OR a challenge in your industry, pointing out how the firm should implement the solution. Resources This is an individual task (2,500 words) where you need to demonstrate your ability to propose an innovation to address a corporate social responsibility / sustainability / industry challenge, by drawing on the relevant material in this course. This is a comprehensive task, which requires you to draw on most of the learning material in this course, and apply it to an innovation challenge. You need to register the challenge you wish to work on by Week 10 with your lecturer. Details of this assessment will be provided on Blackboard and in class. Rubric (See the attached rubric) Your report will be evaluated on the following criteria: Define the corporate social responsibility/su

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Running head: MAHINDRA EVS SUSTAINABILITY CHALLENGE
Mahindra EVs sustainability challenge
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Abstract
This report considers the sustainability challenge of developing and manufacturing
electric vehicles (EVs) in India. The chosen company is Mahindra Electric, the global leader in
EVs development and production. Mahindra Electric is the unique EV developer in India. The
report analyses the Mahindra innovation challenge of sustainability, proposes a leading edge
strategic innovation solution and applies the strategic innovation model to outline how Mahindra
can implement the strategic innovation solution.

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Contents
Introduction......................................................................................................................................4
First: Mahindra related innovation challenge..................................................................................5
Second: Proposed leading edge strategic innovation solution.........................................................6
Third: Application of the strategic innovation model on Mahindra EVs........................................9
Conclusions....................................................................................................................................13
References......................................................................................................................................15

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Introduction
The industrial revolution, increased consumption of transportation energy and mass
production have increased fossil fuel demand and consumption over the last decades. The matter
that leads to an increasing rate of carbon emissions that contributes to global warming and
threatens fuel depletion. Therefore, Electric Vehicles (EVs) have emerged to present a realistic
solution to the problem of carbon emissions and to adapt to climate change with zero emissions.
EVs represent the sustainable transportation of tomorrow (Faisal, 2016).
EVs have emerged since the 1990s as a result of environmental issues and the
advancements in the battery technology. In the developing countries, the EVs are still in the
elementary stage. Governments are required to provide supportive regulations, tax facilities and
prepare the transport infrastructure for the EVs. India is the 5th largest market for cars in the
world and it is expected to grow to the 3rd place by 2020. Despite this, EVs face the challenges of
financial and regulatory restrictions and lack of public charging infrastructure (Srikanth, 2018).
Mahindra Group is a global leader in EVs development and production. Mahindra
Electric is the unique EV developer in India. Mahindra group has the largest portfolio of EVs
aiming at developing clean energy vehicles to ensure sustainability (Mahindra & Mahindra Ltd.,
2018d).
The following section analyses the Mahindra innovation challenge of sustainability,
proposes a leading edge strategic innovation solution and applies the strategic innovation model
to outline how Mahindra can implement the strategic innovation solution.

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First: Mahindra related innovation challenge
1.1 EVs industry sustainability challenge
The EVs industry is still at the elementary stage in India. It represents only 1% of the
total sales of vehicles. Despite this, it is expected to grow in the few coming years to record more
than 5%. According to Society of Manufacturers of Electric Vehicles (2017), there are more than
4 million electric two-wheelers and few thousands of EVs in India. Many companies, including
Mahindra Electric try to make a positive change in reducing the carbon emissions (Society of
Manufacturers of Electric Vehicles, 2017).
1.2 EV Projects in India
The emergence of EVs in developing countries enables them to achieve transportation
sustainability. India is the second largest two wheelers and three wheelers in the world, where
China is in the first place. India is required to expand its EV market to the private car owners that
also depends on the success of the EV in public transportation and the two and three wheelers.
This approach is likely to increase the customer demand on EVs and hence assist in achieving
the goals of sustainable transportation (Faisal, 2016).
1.3 About Mahindra Electric
Mahindra Electric is a part of Mahindra Group, the global pioneer in EVs development
and production. Mahindra Electric is differentiated from its competitors for its in-house
developed EV technologies. It produces one of the most diversified EVs portfolios, including
e2oPlus hatch, the eVerito sedan and the eSupro mini-van and Mahindra Treo of three-wheelers.
Mahindra is highly aware of the necessity to redefine mobility at every stage of production. The
matter that enabled Mahindra to use alternative technology of clean, smart and green tomorrow.
The company heavily tested the using pattern of EVs in India for 100 million eKM and

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developed the perfect solution for connected mobility that allows users to have control over their
mobility. The company depends on learning and development to develop EVs and shift towards
a greener future (Mahindra & Mahindra Ltd., 2019).
Mahindra Electric invested in the shared mobility space with the purpose of promoting
and participating in solutions that ensure sustainable mobility. These developments include the
multi-modal urban mobility that improves people livelihoods and lifestyles. Also, the company
has announced its desire to cooperate with Ford during the last year. This initiative reflects the
company desire to benefit from Ford's expertise and successful model of EVs, power trains and
development of mid-size and SUV (Mahindra & Mahindra Ltd., 2018c).
For Mahindra, sustainability extends the environmental issues to involve the
stakeholders, communities and the world. Sustainability is considered to be an integral
component of the company business and a profit enabler on the long-run (Mahindra & Mahindra
Ltd., 2018b).
Second: Proposed leading edge strategic innovation solution
2.1 Creative problem-solving
Creative problem-solving is a new approach that involves the formulation of the
problem, preparation and idea generation, evaluation and selection. Creative techniques
mainly focus on idea generation (Banovic, et. al, 2016).
2.2 Ideation methods
Organizations depend on several idea generation methods that range from informal
activities to formal brainstorming. Methods of ideation are mainly classified into intuitive
methods that include brainstorming and metaphors and logical methods that include forward

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steps. The intuitive approaches involve systematic procedures that help people to think out of the
box. The roleplaying method starts at the beginning of the innovation process, then it guides the
workers through immersive experience about the problem (Goncalves, Cardoso, & Schaub,
2013).
2.3 Stage-gate model
The stage-gate model involves a series of development periods and assessment that
are called ‘gates’. Gates are used in evaluating the probability of ideas to pass through the
four phases of the innovation process. Ideas should be structured and improved. It is
advantaged for minimizing efforts and be adaptable by the organization as a whole (Riel,
Neumann, & Tichkiewitch, 2013).
2.4 Collaborative idea generation
Collaborative idea generation is an approach that assumes sharing ideas with the group is
likely to increase the number of new ideas. Korde & Paulus (2017), argue that alternating group
and individual ideation are more effective compared to group ideation. Group ideation method in
order to yield benefits should be implemented in a face to face setting that enables verbal sharing
of ideas (Korde & Paulus, 2017; Fuller & Haefliger, 2013; Witell, et. al., 2011).
2.5 Mahindra – pioneering clean electric mobility
Mahindra implemented the 'Skill Excellence' initiative that represents a holistic approach
to develop employees' skill and capabilities. This initiative received active participation across
the company manufacturing facilities. The result of this initiative was considered in the
participation of an associate from the company in the Worlds Skill Competition in Abu Dhabi in
2017 and the ‘Beijing Arc Cup Competition’ for the 3rd time. Mahindra's shop floor associates

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generated on an average 20 ideas per person. The ideas aimed at quality improvement, cost
reduction, ensuring safety and enhancing productivity (Mahindra & Mahindra Ltd., 2018c).
Being a pioneer in the electric mobility solutions in India, Mahindra involves its
new ideas in the innovation process to set up a robust EV ecosystem. It depends on
incorporating technology advanced products concepts, systems and solutions with the
current EV technology to move the electric mobility to the upper level and redefine the
electric mobility of tomorrow (Mahindra & Mahindra Ltd, 2018a).
2.6 New concepts and solutions
The UDO refers to the compact two-seater (Concept Electric mobility pod). UDO defines
the issues that cause urban mobility, like traffic facilities and pollution. Mahindra Electric
developed the idea of UDO that targets urban citizen and enable microclimate control, touch-
screen infotainment, lighting and blue-tooth audio systems. The idea aims to be shaped in an
innovative vehicle that is designed to reduce congestion and emissions. It enables smart cycling
for fitness purpose, through the battery that recharges as you pedal and extends the UDO’s
impact in an environment-friendly manner. Moreover, Mahindra developed the idea of the new
age of urban mobility concept for a smart India, represented in ATOM. It aims to combine
convenience with comfort and intelligence that changes the concept and mechanism. Creative
ideas are connected in a way that integrates services and sustains the future of India
transportation. ATOM is connected with the new electric powertrain and an intelligent
connectivity system that makes bookings and e-payments an easy process. In addition, a new
idea that was implemented into practice is the e-KUV100 that represents India’s pioneer electric
Sports Utility Vehicles (SUV). e-KUV100 is the newly developed generation of EVs that
combines the advantages of the SUV with the EV. It works based on an electric motor which is

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city friendly that integrates smartphone services, location tracking, remote diagnostics and
battery status (Mahindra & Mahindra Ltd, 2018a).
Third: Application of the strategic innovation model on Mahindra EVs
3.1 The business model innovation
The business model phenomenon has been transformed from a reflection of the
organization strategy to become the focus of management attention and researchers as well.
Business models are traditionally associated with value creation, but business model innovation
questions the developments in creating customer value and organizations' restructure to be able
to fulfill the customer needs with new innovative products and services. Therefore, business
model innovation refers to the creation of a different business model in the existing business. It
could also refer to adopting new business logic and ways to create and capture value by
organizations (Spieth, Schneckenberg, & Ricart, 2014).
According to Zott, Amit, & Massa (2011), business model innovation is not only an
enabler of organizational innovations and technological development, but it could be considered
a subject to organization strategic innovation that enables resources sharing, skills management
and creation of value networks. It is considered a strategic tool to enhance organizational
performance. Top performers in the market use the business model innovation in order to
strengthen their strategic position (Schaltegger, Freund, & Hansen, 2012).

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3.2 The innovation action plan, taking into account the company’s current approach,
change requirements, the target market for the innovation and enhancing customer-
perceived value.
3.2.1 Mahindra’s current approach
Mahindra focuses on continuous development of the green, smart and inclusive vehicles.
The company launched the e-Maxximo electric vehicle project to become part from the Indian
Government's National Electric Mobility Mission Plan. The company strives to mitigate the risk
of global warming based on efficient merriments and reduction of gas emissions to zero.
Mahindra focuses on creating a zero-waste economic model that ensures resources use of full
capacity and regenerating the natural systems (Mahindra & Mahindra Ltd., 2018c).
3.2.2 Change requirements
The company re-engineers its supply chain management (SCM) to reduce its footprint in
the transportation industry. Investment in clean power by depending on renewable sources of
energy like electricity represents an additional input in the process of re-engineering of the SCM.
Currently, clean energy represents only 7% of the company power needs. The company targets to
increase the share of its power mix. The company adopts systemic intervention to embed
sustainability in its SCM. It guides its suppliers towards climate risk management and
application of sustainable practices. In 2016, the company adopted its green SCM to achieve the
environmental accountability of suppliers that are expected to optimize the natural sources of
energy and reduces emissions (Mahindra & Mahindra Ltd., 2016).

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3.2.3 The target market for the innovation
Mahindra targets the transportation market in India with its EVs and at the same time it
expects to become among the top 50 most respected and acknowledged global brands by 2021
(Mahindra & Mahindra Ltd, 2016-2017)
3.2.4 Enhancing customer-perceived value
Mahindra focuses on customer experience and customer value creation by developing
lighter engines, long life and stable batteries and enhancing the overall performance of the
vehicles (Mahindra & Mahindra Ltd., 2016). It is highly concerned with customer satisfaction by
building customer relationship and scaling up the sales capacity (Mahindra & Mahindra Ltd,
2015-2016)
3.3 The leadership needed and culture that would support the implementation.
3.3.1 Leadership at Mahindra
Mahindra is highly committed to its people that are considered its powerful capital. The
leadership motivates them in order to drive the company growth of innovation and technology.
The Mahindra Leadership University (MLU) is the company tool to develop talented people. It
aims to invest in people skills and capabilities through its strong governance system. It is
featured of its developmental framework that consists of academics capable to create leaders
with heavy training and comprehensive experiences (Mahindra & Mahindra Ltd., 2018c).
3.3.2 Mahindra culture
At Mahindra, people are capable to drive themselves due to the work culture that
empowers them. Employees' empowerment is encouraged across the company sectors and
units. The employees' value preposition is called (CAPable People). The company adopts

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effective human capital strategies to accelerate its growth and collaborative success
(Mahindra & Mahindra Ltd., 2018c).
3.4 The innovation implementation with the appropriate process, structure, systems and
innovation team (people).
Mahindra innovation implementation is analyzed according to Mahindra &
Mahindra Ltd., (2016), as follows
3.4.1 Process
Mahindra depends on Mahindra Research Valley (MRV) to implement its innovation
process based on research and development (R&D). The MRV facilitates R&D for its production
of EV world-class products by utilizing people skills and knowledge. MRV is connected with
other R&D centers of Mahindra around the world to cooperate in creating the clean technology
of tomorrow.
3.4.2 Structure
Mahindra well-structured process is efficient and effective in resources management
through actions implementation. The company monitors various practices to ensure continuous
improvement of its environmental impact. This structured process not only enables Mahindra to
achieve its goals but to outperform the industry environment KPIs.
3.4.3 Systems
Mahindra adopts the continuous improvement system depending on its intellectual capital
and R&D capabilities. The company system ensures carbon neutrality through energy efficiency,
zero waste, recycling, resources efficiency, reduced emissions and green revenues.

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3.4.4 Innovation team (people)
Mahindra believes that its intellectual capital will have a more important role in the
company future growth, which will be innovation driven. Mahindra considers innovation to
be the driver of its positive change that fuels its progress. It continuously changes the way
it looks at innovation by challenging people to do more with less resources, do it together
and for all.
Conclusions
Mahindra Electric is differentiated from its competitors for its in-house developed EV
technologies. Mahindra is highly aware of the necessity to redefine mobility at every stage of
production. The matter that enabled Mahindra to use alternative technology of clean, smart and
green tomorrow. For Mahindra, sustainability extends the environmental issues to involve the
stakeholders, communities and the world.
Mahindra implemented the 'Skill Excellence' initiative that represents a holistic approach
to develop employees' skill and capabilities. Mahindra involves its new ideas in the innovation
process to set up a robust EV ecosystem. It depends on incorporating technology advanced
products concepts, systems and solutions with the current EV technology to move the electric
mobility to the upper level and redefine the electric mobility of tomorrow.
Mahindra Electric developed the idea of UDO that targets urban citizen and enable
microclimate control, touch-screen infotainment, lighting and blue-tooth audio systems.
Mahindra developed the idea of the new age of urban mobility concept for a smart India,
represented in ATOM. It aims to combine convenience with comfort and intelligence that
changes the concept and mechanism.

14Mahindra EVs sustainability challenge
The company launched the e-Maxximo electric vehicle project to become part from the
Indian Government's National Electric Mobility Mission Plan. Mahindra focuses on creating a
zero-waste economic model that ensures resources use of full capacity and regenerating the
natural systems.
The company re-engineers its supply chain management (SCM) to reduce its footprint in
the transportation industry. Investment in clean power by depending on renewable sources of
energy like electricity represents an additional input in the process of re-engineering of the SCM.

15Mahindra EVs sustainability challenge
References
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