The Mahindra Group-controlled Mahindra Electric Mobility, which has been looking for investors for the past few months, has received offers from multiple companies for a stake buy, a top company official said.
Mahindra Electric Mobility is one of India’s largest electric vehicle makers, with cars, cargo vans and passenger three-wheelers in its portfolio. The company, formed in 2010, has been making losses for the group.
Nearly 100 percent stake is held in the Bengaluru-based company by Mahindra & Mahindra (M&M). The company was formerly known as Reva Electric Car company.
M&M hopes that investors will help it achieve the goal of securing $100 million for product development. A few suitors are believed to have gone through the due diligence process.
‘Offers being finalised’
Pawan Goenka, Managing Director, M&M, said on Thursday: “We have said in the past that we are looking at potential investors in Mahindra Electric and we have significant interest from many players. E-commerce delivery service providers, pure financial investors and strategic investors are some of the companies. We are in the process of finalising the offers from these players. I don’t want to put a date because these things do take time but I can say that the plan is progressing as per plan.”
In 2019-20, Mahindra Electric clocked sales of 14,602 units (966 four-wheelers and 13,636 three-wheelers), a growth of 42 percent compared to 10,276 units (1,811 four-wheelers and 8,455 three-wheelers). The company had a turnover of Rs 279 crore last financial year and a net loss of Rs 55 crore.
By the time the stricter Corporate Average Fuel Economy (CAFE) norms (global norms that are aimed at lowering fuel consumption) are introduced in India by 2022, M&M will have a ‘substantial size’ of electric vehicles in its portfolio, Goenka had said in August.
Delay in launches
Some of the launch plans of M&M in the EV space are running a few months late. The electric version of the KUV compact SUV, which was to make its way in the first quarter of this year will now be likely launched in the last quarter. Next year will probably see the electric version of the electric XUV300.
Mahindra Electric Mobility has invested in development of the next-generation EV platform MESMA 350. The Mahindra Electric Scalable and Modular Architecture 350 is a 350-volt powertrain that supports motor sizes ranging from 60 kW to 280 kW, dual motor concepts and battery sizes up to 80 kWh.
On October 29, Mahindra Electric launched the cargo three-wheeler TreoZor for Rs 2.73 lakh (ex-showroom, Delhi), two years after the company launched the Treo passenger carrier. The TreoZor, which will come in three platforms – pickup, delivery van and flatbed – will have a payload of 550kg.
Mahindra Electric is the largest player from the organised segment in the electric three-wheeler space, having sold 5,000 vehicles till date. The TreoZor is priced higher than Kinetic Green’s 500kg payload Safar Jumbo, which comes for Rs 2.5 lakh. The Safar Jumbo was launched earlier this week.