M&M to Invest ₹12,000 Cr in EV Unit, Mahindra Electric Automobile Ltd

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M&M plans to invest ₹12,000 crore in Mahindra Electric Automobile Limited over three years. The investment aims to boost electric vehicle production, particularly SUVs, leveraging M&M's capabilities and expertise. M&M's standalone net profit rose 32% in Q4FY24.

M&M News Today

Mahindra & Mahindra Ltd announced a substantial investment of ₹12,000 crore in its electric vehicle unit, Mahindra Electric Automobile Limited (MEAL), spread over three years until March 31, 2027. The investment will primarily focus on accelerating the growth of the electric vehicle business, particularly in the passenger electric vehicles segment.

Additional Read: Mahindra & Mahindra Ltd.

As of March 31, 2024, MEAL reported a total income of ₹56.96 crores and a net worth of ₹3,207.14 crore. However, the revenue from operations for FY24 was nil.

Investment Rationale

M&M outlined its investment rationale, highlighting the intention to leverage manufacturing capabilities, product development, and the ecosystem of suppliers, dealers, and financiers. 

The funds will primarily be allocated to develop and market a world-class Electric SUV portfolio with advanced technologies, aligning with M&M's focus on ESG and climate change.

Financial Performance of M&M

Mahindra & Mahindra's standalone net profit surged by 32% in the March quarter to ₹2,038 crore, attributed to the robust performance of the automotive segment, favourable product mix, and operating leverage benefits. Additionally, standalone revenue from operations rose by 11% to ₹25,109 crore in Q4FY24 compared to the previous year.

Additional ReadMahindra & Mahindra Q4 Results

Future Plans and Strategic Insights

M&M aims to achieve an electric vehicle capacity of 10,000 by FY25, with an additional 8,000 capacity targeted by FY26. The company also expressed readiness to adapt its ICE to EV mix by 2027 and indicated a potential entry into hybrid vehicles if market demand arises.




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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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