Mahindra In Talks To Raise Up To Rs. 4,000 Crore For EV Push - Report
3 mins read
Published on December 1, 2022
Indian automaker Mahindra & Mahindra is in talks with global investors to raise between $250 million (about Rs. 2,000 crore) and $500 million (about Rs. 4,000 crore) to accelerate its plans to build electric vehicles (EVs), a source with direct knowledge of the matter told Reuters.
Mahindra is in early talks with global green funds and private equity firms, the person said, adding that it wants a long-term investor who can help build out its EV business.
Some investors, however, in recent months have shown interest in participating in a funding round of worth around $800 million, two banking industry sources said, adding that they have held talks with the company about such offers.
While Mahindra is not actively looking to raise a higher amount than $250-$500 million, it is not closed to the idea of raising the deal size depending on the terms and valuation, the first source said.
"Mahindra wants to bring a benchmark investor onboard but does not want to dilute a large stake at present," he said, adding that these plans are at an early stage and subject to changes.
Mahindra's new EV unit for which it is raising the funds was valued at $9.1 billion in July after its first raise of $250 million from British International Investment (BII).
It was not immediately clear what valuation the investors are offering or what the company is seeking for the new round.
Mahindra told Reuters in a statement it has committed to investing $500 million in the electric SUV space along with BII, and that the two companies will work together to bring other "like-minded, climate focussed investors" in the EV unit.
The talks come weeks after Mahindra outlined an ambitious plan to launch five electric SUVs over the next few years and is targeting such models to make up 30% of its total annual SUV sales by March 2027. The carmaker's first electric SUV is expected to be available for sale in January.
The funds will help the automaker build a war chest to compete against rival Tata Motors which dominates India's nascent electric car market.
Tata, last year, raised $1 billion from TPG's Rise Climate Fund for its EV unit at a valuation of $9.1 billion, making it the first major clean mobility deal in India.
In India, the world's fourth-largest car market, electric models make up just 1% of total annual car sales of about 3 million units. The government wants to grow this to 30% by 2030 and is offering companies billions of dollars in incentives to build EVs and their components locally.
Mahindra has partnered with Germany's Volkswagen to procure components like electric drivetrains and batteries for its electric SUVs, and the two are exploring joint vehicle projects, building battery cells locally and developing charging solutions. The Indian automaker has said it is open to making some investments in a battery cell maker to secure future supplies, and is also evaluating the need to set up manufacturing capacity for EVs, according to local media reports. Mahindra's fundraising also comes at a time when there is growing investor interest in India's clean mobility transition resulting in "more money chasing few assets", one of the two banking sources said.
Some of the current investor interest is a spill over from Mahindra's first fundraise, a third banking source said.
Last Updated on December 1, 2022
Great Deals on Used CarsView All Used Cars
- 1,000 km
- 50,000 km
- 74,440 km
- 42,000 km
- 62,246 km
- 67,000 km
- 57,000 km
- 25,000 km
- 50,561 km
- 56,662 km
Popular Mahindra Models
A strong push during the festive season helped Ola Electric achieve its highest-ever monthly sales, retaining its number-one position in the market.
Gauhar Khan and her husband, Zaid Darbar, were pictured together at the dealership in Mumbai while taking delivery of their new Mercedes.
Hero MotoCorp’s cumulative sales for November 2023 stood at 491,050 units, witnessing a 25.61 per cent increase year-on-year
12 hours ago
12 hours ago
The bikemaker’s cumulative motorcycle sales for the year 2023 stood at 621,672 units, reflecting a 13 per cent increase.
13 hours ago
In the previous month, the automaker sold a total of 11,891 units, marking a growth of 24 per cent as compared to the same month last year.
14 hours ago
At present, India’s largest carmaker holds just a little over 2.06 lakh open bookings, nearly a third of which are for the Ertiga.
15 hours ago
New variant of the Chetak scooter gets some changes as compared to the Premium variant currently on sale.
16 hours ago
The cumulative sales for the Calendar Year 2023 reached 2,10,497 units - a 40 per cent growth over 2022
16 hours ago
While sales were up in comparison to November 2022, Ather reported a 7 per cent decline in sales as compared to October 2023
1 day ago
Mahindra reported a sales growth as compared to November 2022 though domestic SUV sales were down compared to October 2023.
2 days ago
The facelifted XUV300 gets a redesigned front fascia with new light clusters, enclosed grille and redesigned bumper
10 days ago
The Mahindra XUV.e8 is expected to share several components with the XUV700. The new spy shots reveal more details about the upcoming offering
15 days ago
Mahindra has stated that the production ready version of the global Pik-up concept would be released by 2025
22 days ago
The Mahindra Scorpio family accounts for the highest number of pending orders at present with close to 1.20 lakh open bookings.