Mahindra Secures Major Investment for Electric Vehicle Expansion

Mahindra & Mahindra Ltd announced that British International Investment Plc will invest Rs 650 crore in its electric vehicles arm, adjusting a previous agreement of Rs 725 crore. The total investment will now be Rs 1,850 crore, influencing BII's shareholding in Mahindra Electric Automobile Ltd.

Mahindra & Mahindra Ltd has revealed a significant development in its electric vehicle (EV) division. The automaker confirmed on Monday that British International Investment Plc (BII) will be investing Rs 650 crore as part of its final tranche. This announcement modifies the earlier plan of a Rs 725 crore investment. The parties have mutually decided upon this new funding amount based on a joint assessment of Mahindra Electric Automobile Ltd's (MEAL) requirements.

The substantial investment will bring BII Group's cumulative investment in MEAL to Rs 1,850 crore, which will result in BII holding a stake ranging from 2.64% to 4.58% in MEAL's fully diluted share capital. This strategic move is part of Mahindra's aggressive push in the EV market, where they have already committed Rs 4,500 crore towards developing electric brands and production capacities.

To complement this investment, Mahindra is set to introduce two new electric SUVs, the BE 6 and XEV 9e. With deliveries expected in early 2024, entry-level models will be competitively priced, highlighting Mahindra's commitment to the electric vehicle sector. This development is part of Mahindra's larger strategy, which includes a Rs 16,000 crore capex plan to strengthen its electric vehicle business over a five-year period.

(With inputs from agencies.)