Mahindra aims for funds for EVs, in talks to raise over ₹4,000 crore: Report

Mahindra and Mahindra is looking for investors to fund its new EV business as it plans to ramp up the electric vehicle push in India to take on Tata Motors. The carmaker, which specialises in manufacturing SUVs, had recently showcased its plans to go all-out on EVs with the debut of five electric concept vehicles in UK. It also unveiled the XUV400 electric SUV recently, which is set to be launched early next year. According to reports, Mahindra is looking to raise as much as $500 million (roughly converted to ₹4,048 crore) to support its EV push.

News agency Reuters has cited ‘sources with direct knowledge’ who revealed that the carmaker is in talks to find a long-term global investor. The talks are in early stages with global green funds and private equity firms. According to Reuters, some investors have shown interest recently to fund around $800 million and have held talks with the carmaker. Reuters quoted its source saying, “Mahindra wants to bring a benchmark investor onboard but does not want to dilute a large stake at present."

Mahindra showcased its five new electric SUV concepts in August at its UK facility. The five EVs will be Mahindra's range of new battery electric SUVs set to be launched in coming years. The first four are expected to launch between December 2024 and 2026. Mahindra is aiming all-electric models to contribute nearly one-third of its overall SUV sales by March 2027.

Earlier, Mahindra had announced tie-up with British International Investment in an effort to increase investment to manufacture its upcoming electric cars for India. The automaker will get ₹1,925 crore investment from the British firm to help finance the production of Mahindra Electric's upcoming EVs under the Born Electric brand.

Mahindra has also joined hands with Volkswagen to get EV components like drivetrains and batteries. The two carmakers are also planning joint vehicle projects, local manufacturing of battery cells and developing charging solutions.

Mahindra's push for EVs could spell an interesting phase in the electric vehicle segment in India which is currently dominated by Tata Motors. Tata EVs have a market share of more than 80 per cent and continues to grow. Mahindra aims to challenge Tata's dominance with its fleet of six electric SUVs in the next few years.

India, which is the world's fourth-largest car market, is still at an early stage of EV adoption. Despite EV sales picking up by leaps and bounds every year, they still make up just one per cent of overall car sales. The Centre aims 30 per cent of all cars on Indian roads to EVs by 2030.