M&M Plans To Sell 2 Lakh EVs By FY-27

Automobile major Mahindra & Mahindra has recently announced the sale of 2 lakh electric vehicles as its target by FY-27. Its path towards electrification will include the diverse portfolio of five electric vehicles in the coming five years. Rajesh Jejurikar, ED, Mahindra & Mahindra said that the company is looking to invest about $1 billion in the EV business and expects the EVs to give 20-30% of its volumes which translates to about 2 lakh units.

Raising $250 million from British International Investment (BII) last week for its new wholly owned electric vehicle company, Anish Shah, MD of Mahindra & Mahindra, said, “We are very confident that we will take a leadership position in this space. We have an external endorsement of our plans through this fund infusion. This is the starting point, we will bring in more investment in the future with a higher valuation.” The investment was at a valuation of up to Rs 70,070 crore ($9.1 billion).

The EV vision of the company will be showcased in Oxfordshire, UK, on August 15, which will be followed by unveiling of XUV 400 in September. M&M and BII will join hands to bring like-minded investors onboard into the EV company in order to match the funding requirement in phases. BII’s investment aspires to majorly expedite the availability and adoption of EVs in India as well as other markets that M&M serves.

The Mahindra Group is looking to be “Planet Positive” by 2040. Hopeful that BII anchor investment will attract additional sources of private capital, BII CEO Nick O’Donohoe, has said, “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. The first round of BII’s capital investment will be completed not later than June 2023 on fulfilment of conditions precedent and the balance post completion of certain milestones in FY24.”