Following the merger of Mahindra Electric Mobility with parent firm Mahindra, the latter is set to incorporate a new subsidiary focused on last-mile mobility. The yet-unnamed company has already received an investment of Rs 600 crore from the International Finance Corporation (IFC). The new subsidiary will focus on last-mile mobility products including Mahindra’s range of electric three-wheelers and small commercial vehicles.
Speaking on the announcement, Anish Shah, MD & CEO, Mahindra & Mahindra, said, “We are delighted to have IFC as a partner in our last mile mobility journey. Decarbonizing the transport sector is crucial to achieving the climate goals that India has set for herself. With the electrification of the last mile mobility business at scale, we will move a step further in our commitment to be ‘Planet Positive’ by 2040.”
New subsidiary will focus on LCVs and electric three-wheelers.
Mahindra says that the new subsidiary has been valued at up to Rs 6,020 crore with IFC’s investment giving the fiancé institution between 9.97 to 13.64 per cent ownership in the company.
Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sector), Mahindra & Mahindra, said, "The last mile mobility business presents a tremendous opportunity, both in terms of electrification and growth. Being the market leaders in this segment, we have an opportunity to drive higher EV penetration in this segment and provide a more sustainable as well as profitable option to microentrepreneurs.”
The IFC said that it hoped its investment in Mahindra’s new subsidiary would help drive the growth and uptake of EVs in the last-mile mobility space as well as push other large manufacturers to follow suit.
