Mahindra & Mahindra Ltd. (M&M) announced its plans to infuse ₹12,000 crore into its electric vehicle unit, Mahindra Electric Mobility Limited (MEAL), over the next three years.
M&M expects its core auto business to generate sufficient cash flow to fund this ambitious plan, eliminating the immediate need for additional capital. The company also announced an extension to the investment timeline for British International Investment (BII). BII, a UK-based investor, had previously committed to investing up to ₹1,925 crore in MEAL. The revised agreement allows for a joint assessment by December 2024 to determine if further investment from BII is necessary.
Singapore’s Temasek will fulfil its ₹1,200 crore investment commitment, with the remaining ₹900 crore expected to be infused as per the original agreement.
MEAL, a relatively new entity, was incorporated in October 2022. M&M has chalked out in a total capital infusion of Rs 8,000 crore between FY24 and FY27. M&M and BII will work together to bring investors to MEAL, the company said.
The total revenue of MEAL for the fiscal year ending March 31, 2024, was ₹56.96 crore.
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