India’s Mahindra doubles down on EVs with $1.44b investment

Indian automaker Mahindra & Mahindra (M&M) is investing 120 billion rupees ($1.44 billion) in its electric vehicle (EV) unit following strong sales of its SUVs, which led to better-than-expected profits in the Q4, Reuters reported on Thursday.

The investment signifies Mahindra’s commitment to electric mobility. The company will also transfer some assets related to its EV operations to its electric vehicle subsidiary, Mahindra Electric Mobility, for 7.96 billion rupees.

Mahindra currently offers the XUV400 EV model and plans to introduce a new range of EVs next year. Managing Director Anish Shah highlighted the importance of the EV unit’s success in a Reuters interview, suggesting a potential future listing of the subsidiary.

Meanwhile, Mahindra’s core business – SUVs like the Scorpio and Thar – continues to perform well. The company reported a 27.2 per cent increase in SUV sales for the quarter ending March 31st, 2024, compared to the same period last year.

The utility vehicle segment in India has seen a 31 per cent year-on-year surge, contributing to record passenger vehicle sales in the past two fiscal years.

Mahindra’s standalone profit after tax increased by 31.6 per cent to 20.38 billion rupees ($244.06 million).

The automotive sector, accounting for two-thirds of revenue, generated 251.09 billion rupees, exceeding expectations of 240.25 billion rupees.