M&M looking to offload up to 3% stake in EV business, says CEO Anish Shah
According to Anish Shah, the Managing Director and CEO of Mahindra & Mahindra (M&M), the company is considering the possibility of selling approximately 2-3 percent stake in its electric vehicles (EV) business. This move is aimed at exploring strategic options and potential partnerships in the EV segment.
Earlier reports on July 10 suggested that M&M was engaged in advanced discussions with British International Investment (BII) and other global investors to raise up to Rs 5,000 crore ($605 million) for its EV unit. This funding would support the expansion and development of Mahindra’s electric vehicle business.
The potential stake sale and fundraising initiatives highlight M&M’s commitment to furthering its presence and investment in the electric vehicle market. By seeking external partnerships and capital, the company aims to strengthen its position and accelerate its growth in the rapidly evolving EV industry.
“Let me just say at this point that BII has come in with a 2.5-3 percent stake. And we may look at another 2.5-3 percent stake at some point in time. Now, whether that happens in the next month, whether that happens in the next year, is something I don’t know at this point in time,” he told the business news channel.
Mahindra & Mahindra (M&M) is exercising caution when it comes to selling a significant stake in its electric vehicle business. According to Anish Shah, the company’s Managing Director and CEO, this cautious approach signifies their intention to establish a dominant presence in India’s emerging electric car market.
Regarding the potential funding for their green vehicles, Shah mentioned that it would likely occur in phases or tranches. This suggests that the capital infusion would be done gradually over time, indicating a strategic and planned approach to the financial support of their electric vehicle business. By adopting a phased approach, M&M can ensure the effective utilization of funds and align their investments with the evolving market dynamics and growth opportunities in the electric vehicle segment.
Mahindra & Mahindra (M&M) has been engaged in discussions with prominent investors for its electric vehicle (EV) business. Anish Shah clarified that British International Investment (BII) has already made an investment, which is being provided in tranches. He emphasized that the tranches do not imply additional funds being infused but rather refer to the predetermined phased release of the committed investment. Furthermore, M&M is actively pursuing further investments from other potential investors in addition to BII.
In July 2022, BII entered into an agreement with Mahindra Electric to invest Rs 1,925 crore ($250 million) through compulsory convertible preference shares. This agreement solidified BII’s involvement in supporting Mahindra’s EV endeavors.
Looking ahead, M&M has ambitious plans to launch five new EV models between April and October 2025. These models will join their existing lineup, which includes popular vehicles such as the Scorpio, Thar, and XUV range of SUVs. The introduction of these new EV models demonstrates M&M’s commitment to expanding its electric vehicle portfolio and capturing a significant share in the growing EV market.
Mahindra & Mahindra (M&M) has laid out plans to invest approximately Rs 10,000 crore in setting up a manufacturing facility in Telangana. This facility will be dedicated to the production of electric three-wheelers and four-wheelers. The investment is expected to be made between the fiscal years 2022 and 2027.
By allocating significant capital expenditure (capex) towards this manufacturing facility, M&M aims to enhance its manufacturing capabilities for electric vehicles. The company recognizes the potential growth and demand for electric three-wheelers and four-wheelers, and seeks to establish a strong foothold in this segment.
This substantial investment signifies M&M’s commitment to expanding its presence in the electric vehicle market and reinforces its long-term strategy to contribute to the sustainable mobility ecosystem. The manufacturing facility in Telangana will play a crucial role in the production and delivery of electric vehicles, aligning with the company’s vision for a cleaner and greener future.
