July 7 (Reuters) – Mahindra & Mahindra Ltd ( MAHM.NS ) and British International Investments ( BII ) will each invest up to $250 million in the automaker’s new electric vehicle unit at a cost of $9.1 billion, making the Indian company’s Shares will increase. Friday.
BII will own 4.8% in the business, which will focus on four-wheeled passenger electric vehicles (EVs). The unit will be wholly owned by Mahindra, the company said in a statement late on Thursday.
Shares of Mahindra rose 5.4 percent to a record high of Rs 1,194.9 on Friday.
It said the new EV unit will use the funds to build electric sport utility vehicles (SUVs) leveraging Mahindra’s wider manufacturing setup as well as its supply chain, dealers and financiers.
“We expect between 20% to 30% of Mahindra’s SUVs to be electric by 2027,” said Rajesh Jejurikar, executive director of Mahindra’s auto and farm sector.
Jejurikar said the company will share details about its product, technology and platform strategy for EVs in August, and will reveal its first electric SUV in September.
Total capital expenditure for the new unit is expected to be around 80 billion rupees ($1.01 billion) between 2024 and 2027, Mahindra said.
Mahindra said it will work jointly with the British Development Finance Corporation to meet other investors in the EV company in a phased manner.
($1 = 79.1500 Indian Rupees)
Reporting by Nathan Gomes in Bengaluru, additional reporting by Chris Thomas in Bengaluru; Editing by Shailesh Kabir and Amy Karen Daniel
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