Mahindra & Mahindra Ltd. XUV 500 sport-utility vehicles (SUV) stand at the end of the production ... [+]
Mumbai-based Mahindra & Mahindra—controlled by Indian billionaire Anand Mahindra—plans to invest 120 billion rupees ($1.4 billion) to develop electric vehicles as the maker of sports utility vehicles pivots to cleaner automotive technology.
Mahindra Electric Automobile plans to develop electric SUVs amid the EV boom in India, the company said in a filing to the Indian stock exchange on Thursday. India is seeking to reduce carbon emissions from the transportation industry to achieve its target of net carbon zero by 2070.
The company is pivoting towards EVs even as demand for its gas-guzzling vehicles remains robust. Its Mahindra XUV 3XO registered over 50,000 bookings within one hour when the SUV was launched for sale this week.
Reflecting strong sales, Mahindra & Mahindra’s net profit in the fourth quarter ended March climbed 32% to 20 billion rupees, beating analyst estimates. The stock rose 7.5% to 2,550.1 rupees in afternoon trading in Mumbai, heading for a record close.
To help fund the transition from combustion engine cars to EVs, British International Investment has invested 12 billion rupees into the Mahindra Electric, with plans to invest an additional 7.25 billion rupees in the company. Singapore’s state-linked investment firm Temasek has also committed to invest 12 billion rupees into the company.
With a real-time net worth of $3.4 billion, Anand Mahindra belongs to the third generation of the family that controls the conglomerate with interests across several industries including banking, technology and real estate. The tycoon also has a small but valuable stake in Kotak Mahindra Bank.