MUMBAI: Mahindra & Mahindra (M&M) is said to have begun working on what is being pegged as the most affordable electric SUV in the world through its Mahindra Electric unit, formerly known as Mahindra Reva The compact SUV with electric powertrain has been codenamed S107, said people with knowledge of the matter. After the Verito electric version, this is the company’s next major project in the space. The idea is to combine the strength of Mahindra's SUV expertise with that of Reva in electric cars. The company, which sells the E2O entry level electric vehicle, recently showcased the Halo sportscar concept."If anyone is preparing feverishly for a disruptive future of mobility, it is Mahindra," group chairman Anand Mahindra had told shareholders at the 70th annual general meeting this month. Electric cars are a key element of this. While the Verito electric addresses the needs of the practical buyer, a compact electric SUV caters to those who are keen on driving as an experience.“We fully intend to be profitable participants in this new world,” Mahindra had said. Mahindra & Mahindra’s Chief Executive for Automotive Pravin Shah told ET that the company is considering electrification of its KUV model, but the plans are yet to be finalised."We are looking at adding more SUVs as well as small commercial vehicle to our electric vehicle portfolio. The focus will be on offering more affordable electric vehicles for higher accessibility. Mahindra Reva will continue to address the range anxiety with continuous development," Shah said.Ford India is also exploring a hybrid-electric powertrain option for its all-new EcoSport planned for 2020-21, although this is at an early stage. The company is also exploring the possibility of a CNG version of the KUV. Mahindra expects modest annual sales of 6,000 units each for the electric and CNG versions, said one of the persons cited above.The move is seen as a fresh attempt to boost Mahindra Electric, which is focussing on overseas markets and fleet operators to build scale and become viable. Tata Motors and Mahindra have formed a consortium to develop certain components for electric and hybrid cars and make them more affordable and accessible for the masses. Ford India dropped out of the grouping as it’s exploring the EcoSport option.