New Delhi: Mahindra & Mahindra (M&M), the maker of popular sportswear utility vehicle (SUVs) such as the Thar and Scorpio, have acquired UK influence investor British International Investment (SUV).BII) for its new electric vehicle unit at a valuation of $9.1 billion.
The two partners – M&M and BII – will each invest $250 million in a wholly owned subsidiary of M&M called EV Co, BII will invest this amount in the form of compulsory convertible instruments which will give it 2.75% to 4.76% ownership in the EV company.
EV Co will focus on four wheeler (4W) passenger electric vehicles, M&M expects to comprise 20-30% electric vehicles in its portfolio by 2027.
“We want to put our weight behind electric vehicles and not hybrids,” Rajesh Jejurikar, executive director – auto and agriculture sector, Mahindra & Mahindra told TOI.
The total capital investment plan for the EV company is estimated at $1 billion between FY24 and FY27 the product portfolio. M&M and BII will jointly work to bring in other investors in the EV company to meet the funding requirement in a phased manner.
“The 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.” Anish Shahi, MD & CEO, M&M. While M&M will use the funds to build and market an electric SUV portfolio with advanced technologies, the development comes at a time when the Tata Group is foraying into the budding EV industry.
The two partners — M&M and BII — will each invest $250 million in a wholly owned subsidiary of M&M, to be called an EV company.
FacebookTwitterinstagramKu APPyoutube