Mahindra and Mahindra Ltd and British International Investment (BII) will each invest up to $250 million in the automaker's new electric car segment, valued at $9.1 billion, sending Indian shares jumping on Friday.
BII will own 4.8 per cent of the company, which will specialise on four-wheel passenger electric vehicles (EVs). Mahindra will own the unit entirely, according to a statement issued late Thursday.
On Friday, Mahindra's stock soared as much as 5.4 per cent to a record high of 1,194.9 rupees.
The funds will be used to produce electric sport-utility vehicles (SUVs) by utilising Mahindra's broader production setup, as well as its supply network, dealers, and financiers, according to the new EV unit.
"We would expect between 20% to 30% of Mahindra SUVs being electric by 2027," said Rajesh Jejurikar, executive director for Mahindra's auto and farm sectors.
Jejurikar stated that the company will introduce its first electric SUV in September and will discuss specifics on its EV product, technology, and platform strategy in August.
According to Mahindra, the entire capital infusion for the new unit is estimated to be around 80 billion rupees ($1.01 billion) spaced out between 2024 and 2027.
Mahindra said it would engage with the British development financing organisation to get other investors into the EV company in stages to meet the funding requirement.
(Source:www.economictimes.com)
BII will own 4.8 per cent of the company, which will specialise on four-wheel passenger electric vehicles (EVs). Mahindra will own the unit entirely, according to a statement issued late Thursday.
On Friday, Mahindra's stock soared as much as 5.4 per cent to a record high of 1,194.9 rupees.
The funds will be used to produce electric sport-utility vehicles (SUVs) by utilising Mahindra's broader production setup, as well as its supply network, dealers, and financiers, according to the new EV unit.
"We would expect between 20% to 30% of Mahindra SUVs being electric by 2027," said Rajesh Jejurikar, executive director for Mahindra's auto and farm sectors.
Jejurikar stated that the company will introduce its first electric SUV in September and will discuss specifics on its EV product, technology, and platform strategy in August.
According to Mahindra, the entire capital infusion for the new unit is estimated to be around 80 billion rupees ($1.01 billion) spaced out between 2024 and 2027.
Mahindra said it would engage with the British development financing organisation to get other investors into the EV company in stages to meet the funding requirement.
(Source:www.economictimes.com)
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