In a major show of confidence in Mahindra and Mahindra (M&M)’s EV venture, British International Investment (BII), a UK-based development finance institution and impact investor, is expected to invest up to US$250 million (approximately Rs 1,925 crore). ) in the company that will focus on electric four-wheel (4W) passenger vehicles.
M&M itself will match the BII’s $250 million investment, and the two companies will work to attract other like-minded investors to the new electric vehicle business in the coming years.
The BII’s first equity investment round will be completed no later than June 2023, subject to the fulfillment of certain agreed conditions and the balance upon completion of certain milestones in the 2024 financial year. the EV company will be around Rs 8,000 crore (US$1 billion) over the next five years.
M&M will present its EV philosophy and product line on August 15 at its Oxfordshire site.
New EV company will create 8,000 skilled jobs
Mahindra & Mahindra, which has called its entire EV strategy ‘Born Electric Vision’, plans to bring 16 EVs to the Indian market over the next 7 years. These 16 EVs include 8 electric SUVs and 8 electric light commercial vehicles. The company has already launched three concept models as the first of its EVs for India. The first of Mahindra’s EVs will likely hit markets in 2025. The first SUV from the stable, however, will launch in the first half of 2023, and it will be the best-selling XUV 300 making the electric transition.
The BII said the investment in the new EV company supports its commitment that at least 30% of its total investments will be in climate finance.
The new business, which will develop four-wheel electric passenger vehicles for Indian consumers and other markets around the world, will contribute to a reduction of 2.1 million tonnes of C02-equivalent emissions and lead to the creation of around 8,000 skilled jobs. – a quarter of whom are expected to be women.
It will also support an ecosystem of component manufacturers and make electric vehicles accessible to more people. The BII’s investments will be in the form of compulsory convertible instruments at a valuation of up to Rs 70,070 crore, resulting in a 2.75% to 4.76% stake in the EV company.
M&M, which is planning a big leap forward in the electric vehicle segment, has already partnered with Volkswagen for the use of its MEB (Modular Electric Drive Matrix) components.
According to recent research by Roland Berger, a leading global automotive consultancy, Indian consumers are twice as likely as their UK and US peers to consider buying an EV.