IFC to invest Rs 600 cr in Mahindra & Mahindra's new last-mile EV firm

01 Mar 2023

The International Finance Corporation (IFC) announced on Wednesday that it will invest Rs 600 crore in a new last-mile mobility (LMM) company, a wholly-owned subsidiary of Mahindra & Mahindra that will be newly incorporated (NewCo).

The IFC's first investment in an EV manufacturer in the country, and the first in electric three-wheelers globally, will take the form of mandatory convertible instruments worth up to Rs 6,020 crore.

IFC's ownership in NewCo will range from 9.97% to 13.64% as a result of the Rs 600 crore investment.

The last mile mobility division will be housed at NewCo, which will include three-wheelers (Alfa, Treo, Zor) and four-wheeler SCVs. (Jeeto).

India has committed to lowering its emissions profile by 45% by 2030, while also aiming for EV penetration of 80% for two- and three-wheelers, 70% for commercial vehicles, and 30% for private cars in the same time frame.

"India is the world's largest three-wheeler market, and this investment represents a significant step toward scaled domestic production of electric vehicles catering to this segment, as well as small commercial vehicles," said Hector Gomez Ang, Regional Director for South Asia at IFC.

"We have an opportunity to drive higher EV penetration in this segment and provide a more sustainable," says Rajesh Jejurikar, Executive Director and CEO (auto and farm sector), Mahindra & Mahindra, 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".

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