The IFC of the World Bank Group invests Rs. 600 Crore in Mahindra’s New EV Unit for Last Mile Electric Mobility
Mahindra & Mahindra on Wednesday said IFC, a subsidiary of the World Bank Group, will invest Rs 600 billion in a new unit of the company that is being set up to scale up its vehicle business. electric mobility.
IFC is investing Rs 600 billion in a new last mile mobile (LMM) company — a wholly owned subsidiary of Mahindra & Mahindra — will be newly formed (NewCo), the major Mumbai-based automaker said in a statement.
IFC’s first investment in a tram The first domestic and global maker of electric tricycles will be available in the form of a mandatory convertible with a valuation of up to Rs 6,020 crore.
Rs. An investment of 600 crore will yield between 9.97% and 13.64% ownership for IFC in NewCo.
Mahindra & Mahindra said NewCo will own the last-mile mobility division, which includes tricycles (Alfa, Treo, Zor) and SCV four-wheelers (Jeeto).
The IFC funding will help scale up electric mobility in the last mile connection — the passenger and cargo segments — and enable the development and production of next-generation products in this space, it added.
“Decarbonizing the transport sector is crucial to achieving the climate goals that India has set for itself. The IFC, focused on sustainability and promoting prosperity, is an ideal partner. for us,” said Mahindra & Mahindra CEO Anish Shah.
IFC South Asia regional director Hector Gomez Ang said India is the largest global market for tricycles and this investment marks an important step towards large-scale domestic production of electric vehicles serving for this segment as well as small commercial vehicles.
He added: “By supporting a market leader, IFC hopes to encourage other major automakers to follow suit, drive electric vehicle adoption across India and help the government make fulfill its climate goals”.
Decarbonizing the transportation sector, which contributes about 13% of the nation’s greenhouse gas (GHG) emissions, can significantly reduce the impacts associated with greenhouse gas emissions and pollutants. other air pollution.
This is important because India has committed to reducing emissions by 45% by 2030.
Mahindra & Mahindra CEO and Managing Director (Auto & Farm Sector) Rajesh Jejurikar noted that the last mile mobility business presents a huge opportunity, both in terms of electrification and growth.
He added: “As the market leader in this segment, we have the opportunity to drive higher EV penetration in this segment and provide a more sustainable and profitable option. for micro-entrepreneurs”.