Mumbai-based Mahindra & Mahindra, led by Indian billionaire Anand Mahindra, is investing $1.4 billion to develop electric vehicles as part of a shift towards cleaner automotive technology. The company plans to develop electric SUVs in response to the growing demand for electric vehicles in India, as the country aims to reduce carbon emissions from the transportation sector to achieve net zero carbon emissions by 2070.
Despite the pivot towards EVs, Mahindra & Mahindra continues to see strong demand for its traditional gas-guzzling vehicles, with its Mahindra XUV 3XO receiving over 50,000 bookings within one hour of its launch for sale. This strong sales performance has contributed to the company’s net profit in the fourth quarter ending in March, which increased by 32% to 20 billion rupees, surpassing analyst expectations. As a result, the company’s stock rose by 7.5% to 2,550.1 rupees in afternoon trading in Mumbai, on track for a record close.
To support the transition from combustion engine cars to electric vehicles, Mahindra Electric has secured investments from British International Investment and Singapore’s Temasek. British International Investment has invested 12 billion rupees in Mahindra Electric, with plans to invest an additional 7.25 billion rupees, while Temasek has committed to investing 12 billion rupees in the company. These investments will help fund the development and production of electric vehicles within the company.
Anand Mahindra, with a real-time net worth of $3.4 billion, is part of the third generation of the family that controls the Mahindra conglomerate, which has interests in various industries including banking, technology, and real estate. Apart from leading Mahindra & Mahindra, Anand Mahindra also holds a small but valuable stake in Kotak Mahindra Bank. His leadership and vision have been instrumental in guiding the company’s strategic direction and growth, particularly in the transition towards electric vehicles.
The decision to invest in electric vehicles aligns with Mahindra & Mahindra’s commitment to sustainability and reducing its environmental impact. By developing electric SUVs and focusing on cleaner automotive technology, the company is contributing to India’s efforts to achieve its carbon emission reduction goals. The investments in Mahindra Electric will further strengthen the company’s position in the electric vehicle market and support its long-term growth and success in the evolving automotive industry.
As Mahindra & Mahindra continues to innovate and expand its electric vehicle offerings, the company is poised to play a leading role in shaping the future of mobility in India and beyond. With a strong track record of delivering high-quality vehicles and a commitment to sustainability, Mahindra & Mahindra is well-positioned to capitalize on the growing demand for electric vehicles and drive the transition towards cleaner, more sustainable transportation options in the country.
