(Reuters) – India’s Mahindra and Mahindra Ltd said on Thursday that the automaker and British International Investment (BII) would each invest up to $250 million in a new electric vehicle subsidiary at a valuation of $9.1 billion.
BII will have a 4.8% ownership in the business, which will focus on four-wheel passenger electric vehicles. The unit will be wholly owned by Mahindra.
“We would expect between 20% to 30% of Mahindra SUVs being electric by 2027,” said M&M executive director Rajesh Jejurikar.
The total capital infusion for the new unit is expected to be about 80 billion rupees ($1.01 billion) spread out between 2024 and 2027, Mahindra said.
Mahindra said it would work jointly with the British development finance institution to bring other investors in the EV company to match the funding requirement in a phased manner.
($1 = 79.1500 Indian rupees)
(Reporting by Nathan Gomes in Bengaluru; Editing by Shailesh Kuber)