Mahindra’s EV unit raises funds at $9.8 bln valuation from Temasek.

Mahindra's EV unit raises funds at $9.8 bln valuation from Temasek.

Mahindra and Mahindra Raises $145 Million from Temasek for its Electric Vehicle Unit

Mahindra and Mahindra Raises $145 Million from Temasek for its Electric Vehicle Unit

Mahindra and Mahindra, the Indian automaker, has successfully raised $145 million from Temasek for its electric vehicle (EV) unit at a staggering valuation of up to 805.8 billion rupees ($9.8 billion). This latest funding round is aimed at bolstering the company’s efforts to increase sales of its electric SUVs in the competitive market, where it faces tough competition from larger players like Tata Motors.

Temasek, an investment company based in Singapore, will acquire a stake of up to 3% in Mahindra and Mahindra’s EV unit. This investment comes after the company had already raised $250 million from British International Investments (BII) in 2020, valuing the company at $9.1 billion. With these strategic investments, Mahindra and Mahindra is positioning itself as a leading player in the electric SUV market.

The Indian government has set an ambitious target to achieve 30% EV sales by 2030, up from less than 2% currently. In light of this, Mahindra and Mahindra has revised its sales outlook, expecting electric models to account for 20% to 30% of its total SUV sales by March 2030. This target was originally projected to be achieved by 2027, but the company has adjusted its plans to align with the evolving market dynamics.

Mahindra CEO Anish Shah expressed enthusiasm about the investment from Temasek, stating, “Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric SUVs.” This injection of funds will enhance Mahindra and Mahindra’s ability to further develop and promote its electric vehicles in India.

India’s EV market is currently small but rapidly growing, attracting the interest of global players such as Tesla. In fact, Tesla has entered talks with the Indian government to invest in a factory dedicated to building low-cost EVs that could be sold for around $24,000. Should Tesla proceed with this plan, it would likely pose significant competition for local automakers, including Mahindra and Tata Motors.

Speaking of Tata Motors, the company also secured $1 billion in funding in 2021 from TPG’s Rise Climate Fund, valuing the company at approximately $9.1 billion. It is clear that both Mahindra and Tata Motors are aggressively pursuing investments to strengthen their positions in the evolving EV market.

For nearly a year, Mahindra and Mahindra has been in discussions with global investors, including green funds and private equity players, to raise between $250 million and $500 million. This capital injection aims to accelerate the company’s electric vehicle plans. With the successful investment from Temasek, Mahindra and Mahindra is now well-equipped to pursue its ambitious goals.

Following the announcement of the deal, Mahindra’s shares experienced a slight dip, falling by as much as 2.5%. However, they eventually stabilized with a 1.2% decrease. This reaction demonstrates the market’s confidence in Mahindra and Mahindra’s long-term potential.

In conclusion, Mahindra and Mahindra’s successful fundraising efforts, including the recent $145 million investment from Temasek, highlight the company’s commitment to becoming a key player in the electric vehicle market. With the Indian government’s push for increased EV adoption and the entry of global giants like Tesla, the competition is intense. However, Mahindra and Mahindra’s strategic investments will enable them to capitalize on the growing demand for electric SUVs and drive their future leadership in this rapidly evolving sector.

AB InBev’s forecast remains stable du...
EU banks to undergo liquidity checks in 202...
Fannie Mae and Freddie Mac downgraded by Fi...
Merck, Germany, predicts bigger decline in ...
BMW expects growth in Europe but highlights...
Adidas raises 2023 sales forecast due to Ye...
Reviews

Reviews