Mahindra & Mahindra Announces Rs 12,000 Crore Investment in Electric Vehicle Unit

By Editor


Automaker Mahindra & Mahindra (M&M) announced its plans to invest Rs 12,000 crore in its electric vehicle (EV) subsidiary, Mahindra Electric Automobile (MEAL), over the next three years. This significant investment aims to accelerate M&M’s journey in the EV sector.

M&M, in a filing with the stock exchange, confirmed the approval of this substantial investment, highlighting the company’s commitment to advancing its electric vehicle initiatives through MEAL.

“M&M and its auto division expect to generate sufficient operating cash to satisfy all our capital investment needs and are not looking to raise additional capital,” the company stated, indicating confidence in their internal financial strength to support this investment.

Additionally, M&M and British International Investments (BII) have agreed to extend the timeframe for the final tranche of BII’s planned Rs 725 crore investment. So far, BII has invested Rs 1,200 crore, while Singapore-based investment firm Temasek has infused Rs 300 crore into MEAL. According to the stock filing, Temasek will invest the remaining Rs 900 crore according to the previously agreed timelines.

Mahindra Electric Automobile, established on October 25, 2022. reported income of Rs 56.96 crore and a net worth of Rs 3,207.14 crore for the fiscal year ending March 31, 2024. However, the company noted that its revenue from operations for FY24 was nil, reflecting the early stage of its operational activities.

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