Mahindra & Mahindra, the leading Indian sports utility vehicle manufacturer in terms of revenue, is currently engaged in advanced negotiations with British International Investment (BII) and other global investors to secure funding of up to Rs 50 billion for its electric vehicles (EV) division, according to multiple sources familiar with the matter.If the talks regarding Mahindra Electric Automobile prove successful, this would mark BII's second investment round in the Indian conglomerate. The deal is expected to value the company's EV subsidiary 10-15 per cent higher than the previous funding round, which placed it at a valuation of Rs 700.70 billion, according to one of the aforementioned sources.In July 2022, BII had previously signed an agreement with Mahindra Electric to invest Rs 19.25 billion through compulsory convertible preference shares, which would result in a stake ranging from 2.75 per cent to 4.76 per cent, depending on the achievement of specific milestones. Mahindra was also set to invest a similar amount in the EV subsidiary through equity.Mahindra's second fundraising round for its EV division comes at a time of heightened competition in the local market. Indian automobile companies are seeking external funding to expedite product launches and expand capacities in the EV segment to meet ambitious decarbonisation targets.As per Mahindra's customary disclosures to stock exchanges, the company has outlined a capital expenditure of approximately Rs 100 billion in its EV subsidiaries between FY22 and FY27. Out of this total, Rs 40 billion will be invested between FY22 and FY24, with the remainder allocated until FY27.Mahindra has plans to introduce five new EV models between April and October 2025. The automaker anticipates that e-SUVs will constitute 20-30 per cent of its overall SUV portfolio, amounting to around 200,000 units in volume.Until May, Mahindra had dispatched 3,690 units of the XUV 400, an e-SUV launched in January. This accounted for nearly 2.2 per cent of the total passenger vehicles sold during that period.