Mahindra’s EV business gains momentum with Temasek investment

In a significant move that marks a new chapter in the electric vehicle industry, Temasek, the renowned Singapore-headquartered investment firm, has executed a binding agreement to invest Rs. 1200 crores into MEAL (Mahindra Electric Automobile Limited).

Temasek’s Strategic Investment in Mahindra Electric Automobile Limited

This substantial investment will be made in the form of Compulsorily Convertible Preference Shares (‘CCPS’), valuing Mahindra Electric Automobile Limited at up to Rs. 80,580 crores. As a result of this transaction, Temasek will own a stake ranging between 1.49% to 2.97% in Mahindra Electric Automobile Limited.

Impact on Mahindra’s Electric Vehicle Business and Valuation

With this significant investment, Mahindra’s electric vehicle subsidiary’s valuation has increased by 15% from up to Rs. 70,070 crores to up to Rs. 80,580 crores. This substantial boost aligns with the Mahindra Group’s plan to minimize dilution while expanding its global electric SUV portfolio. The participation of Temasek, along with British International Investments (BII), adds a breadth of global experience that is anticipated to be invaluable for MEAL.

Statements from Mahindra & Mahindra Leadership

Dr Anish Shah, MD & CEO of Mahindra & Mahindra Ltd., expressed his delight in having Temasek on board. He said, “We are extremely delighted to have Temasek as a partner in our electric SUV journey. Globally known for their strong governance, Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric SUVs. The valuation of up to $9.8 billion is testimony to Mahindra’s EV business and the progress we have made in the journey towards scaling up the electric SUV portfolio.”

Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors at Mahindra & Mahindra, further emphasized the company’s ambition and stated, “We demonstrated Mahindra’s ambition to build a desirable global brand with the reveal of our born EV portfolio based on the INGLO platform in August 2022 in UK, which is on track for execution. By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20% to 30% of Mahindra SUVs sales from electric vehicles by 2027.”

Significance for the Electric Vehicle Market in India

This collaboration between Mahindra and Temasek signifies a robust alignment of vision and investment in India’s growing electric vehicle market. It showcases a strong commitment to sustainable transportation solutions and is likely to fuel further innovations and growth in the electric vehicle industry in India.