Mahindra will invest 12 thousand crores into its EV project
On Thursday, Mahindra declared its intention to allocate Rs 120 billion ($1.44 billion) towards its electric vehicle (EV) division. Mahindra would pay Mahindra Electric Automobile Rs 7.96 billion to transfer some of its EV-related assets to Mahindra as part of this plan. SUVs like the Scorpio and Thar presently dominate Mahindra's vehicle selection.
The Rs 7.96 billion asset transfer to Mahindra Electric Automobile is a component of a larger plan to bolster its EV division. Mahindra now only provides the XUV400 as an EV model, but by the next year, it hopes to introduce a whole lineup of EVs. Managing Director Anish Shah asserts that Mahindra's intention to eventually float its electric vehicle subsidiary depends on this unit's performance.
SUVs make up a large portion of Mahindra's vehicle lineup; well-known models include the Thar and Scorpio. In comparison to the same period last year, the company had a 27.2% increase in SUV sales in the three months before March 31. Over half of all passenger vehicle (PV) sales in India are utility vehicles (UVs), and this percentage has increased by 31% annually. According to the industry group, the PV sector has seen record sales levels over the last two fiscal years.
Mahindra beat analysts' estimates of Rs 19.61 billion with a standalone profit after tax of Rs 20.38 billion ($244.06 million) for the most recent quarter, a 31.6% rise.
The company’s automotive division, which accounts for about two-thirds of its total revenue, saw an 11.2% rise to Rs 251.09 billion, exceeding analysts’ average estimate of Rs 240.25 billion.
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