Mahindra has revealed that it plans to set up a new, yet to be incorporated, EV subsidiary, which it is referring to as the EV Company. The carmaker said it had entered into an agreement with UK-based British International Investment. (BII) to invest up to Rs 1,925 crore in the company in two tranches, the latter to gain between 2.75-4.76% stake in the new company. Mahindra itself will also invest up to Rs 1,925 crore in the new subsidiary. The upcoming EV subsidiary is valued at Rs 70,070 crore and will focus on the electric four-wheeler segment with Mahindra aiming to develop “a world-class electric SUV portfolio with advanced technologies”. The new EV subsidiary is also expected to receive a further funding of up to Rs 8,000 crore by FY2027 for development of its product portfolio. The company also confirmed that the new XUV400 – the all-electric SUV based on the XUV300 will debut in September this year.
BII’s anchor investment will be crucial to attract additional sources of private capital in this exciting venture with Mahindra Group. Acceleration of EV development in India will be crucial for helping the country reach its emissions targets as well as improving air quality in many urban areas. Mahindra will play a central role in the decarbonization of the automotive industry in India and elsewhere,” said Nick O’Donohoe, CEO, BII.
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Mahindra teased a trio of EV concepts at the beginning of the year with more details to be announced on August 15
In a regulatory filing, Mahindra said it plans to transfer all of its identifiable ‘four wheel passenger electric vehicle business’ to the new subsidiary. The new firm will also benefit from its parent company’s manufacturing capabilities, product development, design organizations and network of dealers, suppliers and financiers.
BII’s first round of capital infusion is expected to be completed by June 2023.
Speaking on the announcement, Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd. said: “We are extremely happy to have BII as a partner in our SUV electric journey. At BII, we have found a long-term like-minded partner who is committed to combating the climate emergency. Mahindra Group aims to become Planet Positive by 2040. Mahindra has been a leader in the electric vehicles space, and we are confident that we will be the leader in the electric SUV market in the future.
See also: Mahindra eXUV300 electric SUV launch confirmed for 2023
Mahindra is set to launch the all-electric derivative of the XUV300 in India this financial year. The model is called XUV400. expected to be called
Mahindra has big plans for the electric vehicle segment in India in the coming years, with the company targeting 20% to 30% of its sales to come from EVs by 2027. Earlier this year the firm teased a trio of ‘Born Electric’ electrics. The vehicle concepts are expected to preview the company’s new-gen electric vehicles along with confirmation of plans to launch the XUV300, the all-electric derivative of the XUV400 in India during this financial year. The company is set to reveal more details about its new ‘Born Electric’ model on August 15, 2022.
See also: Volkswagen, Mahindra explore partnership for electric vehicle components
“Mahindra has very exciting plans to become the leader in the electric SUV space. We will share our vision which includes our comprehensive product, technology and platform strategy at the UK event on 15 August 2022,” said Rajesh Jejurikar, Executive Director – Auto and Farm Sector, Mahindra & Mahindra.