Mahindra Sets Up EV Co Subsidiary For Electric Vehicles - To Unveil Electric XUV 400 In September

The investment by British International Investment and Mahindra into EV Co that will be newly incorporated. According to the pact signed by BII and Mahindra, British International Investment will invest Rs 1,925 crore in the form of compulsory convertible instruments at a valuation of up to Rs. 70,070 crores. BII's investment into EV Co. will see the UK's Development Finance Institution and impact investor own 2.75% to 4.76% of the new electric subsidiary of Mahindra.

EV Co., claims Mahindra, will focus on four-wheel passenger electric vehicles. The total capital infusion into the new company is expected to be around Rs 8,000 crore ($1 Billion) between the financial years 2023-24 and 2026-27.

Mahindra's first new vehicle that is expected to be a result of EV Co. are the new set of three electric SUVs from its Born Electric range which will be unveiled on the 15th of August. his will be followed by the electric XUV 400 SUV will be unveiled this September.

Speaking about its new electric subsidiary and the partnership wih BII, Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd. said: "We are extremely delighted to have BII as a partner in our SUV electric journey. In BII, we have found a like-minded long-term partner who is committed to combating the climate emergency. The Mahindra Group aims to be Planet Positive by 2040. Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future."

Nick O'Donohoe, CEO, British International Investment, commented: "BII's anchor investment will be key to attracting additional sources of private capital into this exciting venture with the Mahindra Group. The acceleration of EV development in India will be critical to supporting the country in reaching its emission targets as well as improving air quality in many urban areas. Mahindra will play a central role in the decarbonisation of the automotive industry in India and elsewhere."

Samir Abhyankar, Managing Director and Head of Direct Private Equity, British International Investment, said: "Climate change is one of the biggest challenges of our time. The investment into Mahindra's EV business is in line with our decarbonization strategy and focus of supporting sustainable business models that create new jobs, particularly for women. We are delighted to be backing Mahindra to execute on their compelling EV strategy and ambition and crowd in other like-minded investors in the future."

Thoughts About Mahindra's Electric Future

Mahindra looks to be getting ready to punch its way back to the top and with its new EV Co., the Mumbai-based automaker is building a platform that will see multiple electric SUVs hit our streets in the coming years.