Mahindra Electric Approves Rs 12,000 Cr Investment In EVs

Mahindra Electric Approves Rs. 12,000 Cr. Investment In EVs

Mahindra Electric Automobile Limited recently approved an investment of Rs. 12,000 Cr. in Mahindra Electric Automobile Limited (MEAL) in one or more tranches, over three years up to 31st March 2027.

MEAL is expected to fund in company over the next 3 years. Moreover, Mahindra and Mahindra (M&M) and its auto division are expected to generate sufficient operating cash to satisfy all their capital investment needs.

Previously, Mahindra and Mahindra (M&M) and British International Investment (BII) mutually agreed to extend the timeframe for the final tranche of BII’s planned investment of Rs. 725 Cr. They plan to jointly assess whether additional investment is required by Dec 31, 2024. BII has invested Rs. 1200 Cr. and Temasek has invested Rs. 300 Cr. so far in MEAL. Temasek plans to invest in the balance of Rs. 900 Cr. as per the agreed timeline.

Mahindra Electric Automobile Limited, a subsidiary of the Company (MEAL) was incorporated on 25th October 2022 in India. Total Income of MEAL for the year ended 31st March 2024 was Rs. 56.96 Crores. The net worth of MEAL as of 31st March stood at Rs. 3,207.14 Crores. The Revenue from Operations of MEAL for FY 24 was nil.

To accelerate the growth of the Four-wheel passenger electric vehicles business and to get growth capital to fund the said business. The company said, “MEAL will significantly leverage the manufacturing capabilities and product development of the company as also the ecosystem of suppliers, dealers and financiers of the company. The funds infused by the company will be utilized by MEAL primarily to create and market a world-class Electric SUV portfolio with advanced technologies. The investment will help the Company to leverage its focus and expertise in ESG and Climate Change.”