Mahindra Accelo: From steel trading to tier-0.5 supplier to automotive and energy industry

From a steel trading business to a leading mobility and energy component manufacturer, Mahindra Accelo now serves major automotive and EV OEMs and promotes sustainability through initiatives like CERO. In this interview, Sumit Issar (Managing Director, Mahindra Accelo Limited) discusses the company’s journey, capabilities, and future growth plans.

Starting as a steel trading business, how did Mahindra Accelo come about to its present name and company profile? How did the company pivot to become a tier-1 automotive supplier?

Mahindra Accelo evolved from a steel trading business in 1945 to a mobility & energy component player through strategic diversification into high-end value-added services. Since establishing its first steel service centre in 1993, the company has constantly invested in world-class technology and expanded its manufacturing capabilities and product portfolio. The focus on sustainability and the launch of CERO, India’s first organized vehicle recycling initiative, marked significant milestones. The renaming to Mahindra Accelo represented an accelerated focus on decarbonization and the strategic pivot to producing mobility and energy components, positioning it uniquely as a tier-0.5 supplier to automotive OEMs.

Please tell us about your manufacturing facility locations and team strength.

Mahindra Accelo operates 12 highly automated facilities integrated with IoT and Industry 4.0, spread across various locations to serve the automotive and energy sectors.

• Our automotive component manufacturing facilities produce a range of high-quality products, including BiW Assemblies, Skin Panel Stampings, Class A/B/C Components, and Motor Cores for electric and hybrid vehicles. These state-of-the-art facilities are strategically located in Kanhe 1, Nashik, Chakan 1 & 2, Supa, and Chennai.

• We are one of the leading manufacturers in the energy industry, boasting advanced facilities in Kanhe 1 & 2, Bhopal, Vadodara, Noida, Chennai, and two overseas locations, namely Sharjah and Indonesia. With these advanced facilities, we export to more than 25 countries.

• The CERO initiative, India’s largest green vehicle recycling network, is present in 40+ cities. Cero focuses on making the scrapping of old vehicles hassle-free for its customers.

Given the investment in high-level automation, Mahindra Accelo operates with a lean workforce. The company’s skilled workforce focuses on innovation and drives excellence.

In the automotive industry, what are the company’s focus areas and scale of operations?

Currently, Mahindra Accelo manufactures BiW Assemblies, Skin Panel Stampings, Class A/B/C Components, and Motor Core for EV & Hybrid vehicles. Notable facilities include our world-class facility in Supa with India’s 1st skin panel automated Tandem press (outside OEM) and state-of-the-art Chakan 2 facility featuring automated robotic welding arms for critical safety-related BiW components.

Specific to the EV industry, please tell us about your product portfolio of EV motor cores. Can you also give us an insight into your technical capabilities of Mahindra Accelo’s motor core production?

Our product portfolio for EV motor cores is extensive and designed to meet the evolving demands of the electric vehicle industry. We employ advanced stamping presses which is capable of processing steel as thin as 0.2 mm. This ensures that we can produce high-quality motor cores efficiently, catering to the stringent requirements of all major EV OEMs. Our technical capabilities in handling thin steel set us apart in the industry. The use of cutting-edge processing techniques demonstrates our dedication to maintaining a leadership position in the EV sector. Our commitment to excellence and adaptability ensures we continue to drive progress and deliver superior products, reinforcing our position as a trusted leader in motor core production.

Can you help us understand which/what kind of EV OEMs do you supply to?

Mahindra Accelo supplies essential components, including high-quality motor cores, skin panels, and automotive parts, to all major EV & EV Motor OEMs in 2W, 3W and 4W space. Utilizing advanced stamping presses, processing thin stampings (0.2 mm), world-class skin panel press line at Supa and 60+ automated robotic welding arms, Mahindra Accelo meets stringent EV manufacturing standards. Their expertise and versatile product offerings ensure they remain key players in the EV market, supporting the sector’s growth with state-of-the-art technology and uncompromising quality.

How does Mahindra Accelo incorporate AI and digital technologies to optimise its operations?

We leverage digitization to optimize operations, implementing digital systems across manufacturing, quality control, predictive maintenance, customer engagement, and employee management. These initiatives enhance efficiency, streamline processes, and improve product quality. Future plans include AI integration to further advance operational excellence and innovation.

Please tell us about CERO and its work in the end-of-life vehicle recycling space. How does it help promote sustainability in the automotive space?

CERO, the pioneering joint venture initiative of Mahindra Accelo Ltd. and MSTC Ltd. (a Government of India Enterprise), is India’s first authorised vehicle recycling unit, established in Noida in 2016 and now expanded to over 40 cities.

CERO promotes sustainability by safely dismantling and recycling end-of-life vehicles, recovering valuable materials (such as metals, plastics, and rubber) for use in new manufacturing, reducing environmental pollution, conserving resources, and supporting the circular economy.

What is the growth roadmap planned for Accelo in the coming years?

Mahindra Accelo’s growth roadmap emphasizes technology and innovation, digitization, and AI implementation aligned with Industry 4.0 principles. Plans include expanding operational footprint, leveraging cutting-edge technology for efficiency and product quality improvements, with AI driving predictive maintenance, quality control, and customer engagement. Targeting a 5x scale increase, these initiatives reinforce Mahindra Accelo’s commitment to innovation, sustainable practices, and industry leadership.

Also read: Hindalco supplies battery enclosures to Mahindra from Chakan plant