The British Government will invest up to 245 million in a new Mahindra electric car company

Mahindra will inject another 250 million dollars in the new electric vehicle business unit

July 8. () –

British International Investment (BII), the UK’s public development finance institution, will invest up to 250 million dollars (245 million euros) in a new electric vehicle joint venture to be launched by India’s Mahindra & Mahindra (M&M).

The first round of BII’s equity investment is expected to be completed no later than June 2023 if preconditions are met and the remainder following certain milestones in fiscal 2024.

On its side, M&M will match BII’s commitment to invest up to $250 million and both partners will work to attract other like-minded investors to the new electric vehicle business over the next several years.

The new business will develop four-wheel electric passenger vehicles for Indian consumers and in other markets around the world and is estimated to help avoid the emission of the equivalent of 2.1 million tons of carbon dioxide (CO2), in addition to promote the creation of around 8,000 qualified jobs, of which a quarter are expected to be women.

It will also support an ecosystem of component manufacturers and make electric vehicles accessible to more people.

The participation in the company of the investment arm of the British Government in communion with M&M supports BII’s commitment that at least 30% of its total investments will go to climate finance.

“In BII, we have found a like-minded, long-term partner who is committed to fighting the climate emergency,” said Anish Shah, CEO of Mahindra & Mahindra.

For his part, Nick O’Donohoe, CEO of BII, commented that BII’s main investment “will be key to attract additional sources of private capital”, adding that accelerating the development of electric vehicles in India will be essential to help the country to meet its emissions targets.