British International Investment (BII), the UK’s Development Finance Institution and impact investor and Mahindra & Mahindra (M&M) have executed a binding agreement to invest up to Rs 1,925 crore each into a wholly owned subsidiary of M&M that will be newly incorporated (“EV Co.”). It will invest up in the form of compulsory convertible instruments at a valuation of up to Rs 70,070 crore, resulting in 2.75 per cent to 4.76 per cent ownership for BII.

The EV Co. will significantly leverage the broader manufacturing capabilities, product development, design organisations along with the ecosystem of suppliers, dealers, and financiers of M&M. The funds will be utilised primarily to create and market a world-class electric SUV portfolio with advanced technologies.

Commenting on the development, Dr Anish Shah, MD and CEO, Mahindra & Mahindra Ltd. said: “We are extremely delighted to have BII as a partner in our SUV electric journey. In BII, we have found a like-minded long-term partner who is committed to combating the climate emergency. The Mahindra Group aims to be Planet Positive by 2040. Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future.”

Mahindra will showcase a new range of battery electric SUVs on August 15 in UK of which all are expected to arrive in India within the next five years.