Mahindra and Indian automaker Mahindra Ltd are in high-level negotiations with global investors to raise between $1 billion and $1.3 billion to accelerate the expansion of their electric vehicle (EV) sector. is reported. The company plans to raise capital in multiple tranches over the next two years through the sale of shares in the unit, which is currently valued at more than $9.1 billion, according to sources familiar with the matter.
Mahindra’s official statement has yet to be released, but the company’s share price rose 1.7% on Wednesday, even though he has fallen more than 6% so far this year. By comparison, shares in rival Tata Motors have risen 7%.
The Mumbai-based conglomerate expects to raise between $800 million and $1 billion in its first tranche in the first half of 2024. Mahindra, known for its sport utility vehicles (SUVs) and jeeps, has announced plans to boost its EV production capacity, in line with the Indian government’s goal of increasing the share of electric vehicles from its current 1% to 30% overall. increased investment. Annual vehicle sales will increase in 2030. In December, Mahindra invested 100 billion rupees ($1.21 billion) in an electric vehicle manufacturing facility near the western city of Pune to compete with Tata Motors, which currently dominates the Indian electric vehicle market. announced plans to build the facility. Tata Motors is also in talks with sovereign wealth funds and private equity investors to raise up to $1 billion through the sale of shares in its EV business. Mahindra said several Indian automakers are expanding their EV production capacity as the Indian government seeks to promote EVs to reduce air pollution, combat climate change and reduce reliance on imported oil. One. The country relies heavily on oil imports to meet its energy needs, leading to higher prices and a trade deficit. Mahindra has made great strides in the electric vehicle sector in recent years, with the launch of his e2o electric hatchback in 2013, followed by his eVerito sedan in 2016. The company also acquired its 55% stake in electric vehicle manufacturer REVA in 2010. Under the development of e2o.
Besides Mahindra and Tata Motors, other Indian automakers are also investing in the EV space. For example, major commercial vehicle maker Ashok Leyland has announced plans to invest $100 million in his UK-based EV subsidiary Optare, while leading motorcycle maker Hero MotoCorp has invested in electric scooters and bicycles. I’m here. India’s foray into electric vehicles is also attracting foreign automakers. For example, South Korea’s Hyundai Motor plans to invest $17 billion in electric vehicles, hydrogen fuel cells and other future technologies by 2025. In addition, Toyota Motor Corporation the Japanese automaker. plans to launch the electric Toyota BZ in India by 2025. In summary, Mahindra plans to invest up to $1.3 billion to help combat global warming and reduce national dependence. About imported oil.
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