Mahindra’s EV unit raises funds from Temasek at $13.1b valuation
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Mahindra and Mahindra is aggressively trying to lift the share of its electric SUVs to catch up with rival Tata Motors.
PHOTO: REUTERS
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BENGALURU – Mahindra and Mahindra has raised US$145 million (S$195 million) from Temasek for its electric vehicle unit at a valuation of up to 805.8 billion rupees (S$13.1 billion), the latest fundraising by the Indian automaker as it looks to ramp up EV sales.
Temasek will take up to a 3 per cent stake in the company that in 2022 raised up to US$250 million from British International Investments (BII) at a valuation of as much as US$9.1 billion.
The automaker is aggressively trying to lift the share of its electric SUVs in a market that is dominated by larger rival Tata Motors, as the government pushes to grow EV sales to 30 per cent by 2030 from less than 2 per cent today.
Mahindra said it expects electric models to make up between 20 and 30 per cent of its total SUV sales by March 2030 – pushing back an outlook it gave in 2022 of meeting that target by 2027.
“Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric SUVs,” Mahindra CEO Anish Shah said in a news release.
India’s EV market is small but growing, attracting interest from global players including Tesla.
The world’s biggest EV maker is in talks with the government to invest in a potential factory that would build low-cost EVs, targeting a price of around US$24,000.
Analysts say this could pose stiff competition for local automakers.
Rival Tata Motors in 2021 raised US$1 billion from TPG’s Rise Climate Fund at a valuation of about US$9.1 billion.
Mahindra has been in talks with global investors, including green funds and private equity players, for nearly a year to raise between US$250 million and US$500 million to accelerate its EV plans. REUTERS
