Mahindra and Mahindra Set to Launch 16 New Models by 2027, Eyes PE Fund for EV Biz
Auto major Mahindra & Mahindra has announced that it is open to investments in its electric vehicles (EVs) business after building value into it. Also, the Mumbai-based company hints plans to launch 16 EVs over the next six years across sport utility vehicles (SUVs) segment and half in light commercial vehicle categories.
The auto giant firm has announced plans to invest 3, 000 crore in sustainable mobility by the end of fiscal 2024 while staying open to private equity funding and strategic partnerships.
Furthermore, the Anand Mahindra-led auto giant is poised to expand its farm machinery business 10-fold with annual revenue of Rs 5,000 crore by 2027, and the company is ready to get investors on board.
Anish Shah, managing director and CEO, M&M states, “We are looking at very bold growth plans in multiple areas—in EV from an automotive standpoint and on the farm machinery side, there is a huge potential beyond tractors and across many of our growth gem.” He further adds that the company looking at funding coming in from outside that will boost growth much faster, highlighting that it is not just for funds, it is also for any “expertise that the investor may bring in”.
Under his leadership, the company has said it would concentrate on ‘authentic SUVs’, mainly built around its top brands—Bolero, Scorpio, XUV and Thar. Shah revealed that a lot of work is on progress within the company to make it ready for EVs, and it one of the earliest makers of EVs in India.
Last month, Tata Motors had raised nearly a billion dollars for its EV business at a valuation of $9.1 billion on the upper end. Several motorbike companies such as TVS Motor and Bajaj Auto are also creating separate subsidiaries for EVs with fundraising being one of the purposes for the bifurcation.
Foreign investors are keen on pumping money into EV businesses in hopes of finding the next Tesla, the Elon Musk-led EV maker that has given more than 1600 per cent returns in the last two years.
On Tuesday, M&M posted over an eight-fold jump in its standalone profit after tax at Rs 1,432 crore for the second quarter ended September 30. “We have seen significant all-around improvement in our performance this quarter. Our strong show in the auto and farm sectors was complimented well by the improved performance in the group companies. Our investments in digital platforms are doing well and present a meaningful opportunity to create and unlock value,” said Shah.
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