Mahindra to invest Rs. 10,000 crore for EV manufacturing plant
Homegrown automaker Mahindra has been making an aggressive push to become the leader of India's growing EV space. The company has now announced that it will invest Rs. 10,000 crore in Pune to set up an electric vehicle manufacturing and development plant. The company's investment plan has been approved under the Maharashtra government's industrial promotion scheme.
Why does this story matter?
In India, electric models make up only 1% of annual car sales. The government has the lofty ambition to make it 30% by 2030. This makes the country one of the most attractive EV markets. With many vying to become the leader of the pack, it is essential to make the right moves and investments. It seems that Mahindra is on the right track.
Mahindra will invest through its EV subsidiary
Mahindra's investment in Pune will be through its EV subsidiary. The investment will span over 7-8 years. The company said that it will manufacture its new range of Born Electric Vehicles (BEVs) in the new plant. This will include the EV version of the XUV700. The plant will serve as a hub for the development, manufacturing, and production of EVs.
Delighted to invest in home state of 70 years: Mahindra
"We are delighted with this approval from the Govt. of Maharashtra for setting up our EV Manufacturing Plant in Pune, and investing in what has been our 'home' state for over 70 years," said Rakesh Jejurikar, executive director, auto & farm sectors, Mahindra & Mahindra. "We are very thankful to the Govt. of Maharashtra for their continued support," he added.
Mahindra raised $250mn from BII for EV manufacturing
Earlier this year, Mahindra raised $250 million from British International Investment (BII) for its EV subsidiary. In September, the company confirmed that it is in early talks with global green funds and private equity firms to raise between $250-$500 million for its EV aspirations. In the same month, the automaker took the wraps off XUV400, the brand's first-ever all-electric SUV.
