BII to invest $ 250 million in Mahindra EV Co

July 9, 2022
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EV Co" will launch 5 new eSUVs  over the next four years as it plans to sell 2,00,000 cars by Fy 27 with a monthly target of 17,000 units per month from the word go. Of the total capex of 10,000 crore, 8000 cr will be raised by  Mahindra & BII jointly between FY24 to FY27. The  balance 2000 crores will be additionally invested by M&M over and above its investments in the EV Co, said Rajesh Jeujrikar, Executive Director Auto & Farm Sectors

British International Investment (BII), the UK’s Development Finance Institution and
impact investor and Mahindra & Mahindra (M&M) have executed a binding agreement to invest up
to Rs. 1,925 crores each into a wholly owned subsidiary of M&M that will be newly incorporated
(“EV Co.”). BII will invest up to Rs 1,925 crores in the form of compulsory convertible instruments at a
valuation of up to Rs. 70,070 crores, resulting in 2.75% to 4.76% ownership for BII in the EV Co. The EV
Co. will focus on four-wheel (4W) passenger electric vehicles.
The total capital infusion for the EV Co. is envisaged to be approximately Rs. 8,000 crores / USD 1
billion between FY 24 and FY 27 for the planned product portfolio. M&M and BII will work jointly to bring
other like-minded investors in the EV Co. to match the funding requirement in a phased manner. BII’s investment is designed to significantly accelerate the availability and adoption of electric vehicles in
India and other markets served by M&M. According to a recent survey by Roland Berger, a leading global
automotive consulting company, Indian consumers are twice as likely as their counterparts in the UK and
the US to consider the purchase of an EV. The investment alongside M&M in the new EV company
supports BII’s undertaking that at least 30% of its total investments will be in climate finance.
The EV Co. will significantly leverage the broader manufacturing capabilities, product development, design organizations along with the ecosystem of suppliers, dealers, and financiers of M&M. The funds will be utilized primarily to create and market a world-class electric SUV portfolio with advanced technologies.

Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd. said: “We are extremely delighted to have BII
as a partner in our SUV electric journey. In BII, we have found a like-minded long-term partner who is
committed to combating the climate emergency. The Mahindra Group aims to be Planet Positive by 2040.Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future.”
Mr. Nick O’Donohoe, CEO, British International Investment, commented: “BII’s anchor investment will be
key to attracting additional sources of private capital into this exciting venture with the Mahindra Group. 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. Mahindra will play a central role in the decarbonisation of the automotive industry in India and elsewhere.”
Mr. Rajesh Jejurikar, Executive Director – Auto & Farm Sectors, Mahindra & Mahindra, commented:
“Mahindra has very exciting plans to be a leader in the electric SUV space. We would share our vision that includes our comprehensive product, technology, and platform strategy at the UK event on 15 August 2022, followed by a reveal of the electric XUV 400 in September 2022. We would expect between 20% to 30% of Mahindra SUVs being electric by 2027”.

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