Indian billionaire Mahindra to invest $1.4 billion in electric vehicles development

MUMBAI: Indian billionaire Anand Mahindra on Friday announced to invest over $1.4 billion in developing electric vehicles (EVs).

The chairman of Mahindra and Mahindra announced this investment as part of the company’s transition towards greener automotive technology. Experts see this move as a response to the growing demand for EVs in India. It also aligns with the country’s goal of achieving net zero carbon emissions by 2070.

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The company holds a significant market share in India, primarily for gasoline vehicles. However, as the country of 1.4 billion aims to shift to greener and renewable energy sources, the automobile company is eager to tap into the emerging market for EVs.

Mahindra and Mahindra has established a dedicated electric vehicles division called Mahindra Electric, which successfully secured investments from British International Investment and Temasek.

The British International Investment has initially committed $144 million, with intentions to add another $87 million later. Meanwhile, Temasek has pledged $144.5 million. These investments will be utilised by the Indian EV division for the development and subsequent production of electric vehicles.

With a net worth of $3.4 billion, the Indian billionaire represents the third generation of the family overseeing the Mahindra conglomerate. The company diversified its portfolio over the years, expanding into various sectors including banking and real estate.

The company is also exploring hybrid technology alongside its EV initiatives. A spokesperson for the company stated that they were ready to adopt hybrids “if necessary”.

The global trend towards EVs and hybrids has been driven by a growing environmental awareness, particularly among younger generations seeking to reduce reliance on fossil fuels.

Currently, China leads the EV market, with Western brands like Mercedes and Tesla following. However, even the world’s fifth-largest economy has decided to dip its toes in the emerging market, marking a significant shift away from traditional fuel-based vehicles.

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This shift is widely perceived as a strategic maneuver aimed at challenging China in most emerging markets, especially as India is projected to soon become the fourth-largest economy, surpassing Japan.

The pressing impact of climate change on India also serves as a huge incentive to curtail emissions and advance sustainable transportation solutions in a nation with a population exceeding 1.4 billion.