India

Temasek invests $9.8B in Mahindra’s EV subsidiary

Mumbai, August 3, 2023

Mahindra & Mahindra and Temasek, the Singapore-headquartered global investment firm, have executed a binding agreement. Under this agreement Temasek will invest INR 1,200 crore in Mahindra Electric Automobile Limited.

The investment will be in the form of Compulsorily Convertible Preference Shares (‘CCPS’). Mahindra Electric which has a valuation of up to INR 80,580 crore. The investment will result in Temasek’s ownership of a 1.49% to 2.97% stake in MEAL.

Temasek will join British International Investments (BII) as an investor in MEAL. The breadth of global experience of these marquee investors will be valuable for MEAL. The amount invested is consistent with the Mahindra Group’s plan to minimise dilution.

Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd. said, “We are delighted to have Temasek as a partner in our electric SUV journey. 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. The progress we have made in the journey towards scaling up the electric SUV portfolio.”

Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra said, “We demonstrated Mahindra’s ambition to build a desirable global brand. With Temasek as an investor, we have strengthened our global strategic partnerships. We are targeting 20% to 30% of Mahindra SUV sales from electric vehicles by 2027.”

Mahindra has been building partnership with end user enterprises to expand its EV presence in India. It has launched 3 wheelers and partnered for commercial vehicles.

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