Indian automaker Mahindra & Mahindra has announced plans to invest 120 billion rupees ($1.44 billion) in its electric vehicles unit, Mahindra Electric Automobile. The company’s decision comes as it seeks to expand its electric vehicle lineup, with plans to launch a new range of EVs next year.
In addition to the investment, Mahindra & Mahindra will sell some assets associated with its EV car business to Mahindra Electric Automobile for 7.96 billion rupees. This move is part of Mahindra’s strategy to strengthen its electric vehicle business and prepare for the listing of its EV subsidiary, as Managing Director Anish Shah had previously stated.
Mahindra currently offers one EV model, the XUV400, and has seen steady sales of its sports utility vehicles (SUVs), including popular models like the Scorpio and Thar. In the three months ending March 31, the company reported a 27.2% increase in SUV sales compared to the same period last year.
The growth in SUV sales is significant, as utility vehicles (UVs) account for more than half of passenger vehicle (PV) sales in India. According to industry data, UV sales rose 31% year-on-year, contributing to the overall growth in PV sales, which have reached record levels over the last two fiscal years.
For the fourth quarter, Mahindra & Mahindra reported a standalone profit after tax of 20.38 billion rupees ($244.06 million), a 31.6% increase from the previous year. The company’s automotive business, which accounts for almost two-thirds of total revenue, saw a revenue increase of 11.2% to 251.09 billion rupees, surpassing analysts’ estimates.
