Automobile manufacturer Mahindra & Mahindra plans to invest ₹120 billion (~$1.43 billion) in its electric vehicle (EV) unit, Mahindra Electric Automobile (MEAL), over the next three years up to March 31, 2027.

In a stock exchange filing, the company stated that it expects to generate enough operating cash through its auto division to cover all capital investment needs without requiring additional external funding.

Mahindra & Mahindra and British International Investments (BII) have also decided to extend the deadline for the final tranche of BII’s proposed ₹7.25 billion (~$86.93 million) investment in MEAL. They will reassess the necessity for further investments by December 31, 2024.

To date, BII has invested ₹12 billion (~$143.88 million) in MEAL, and Temasek, a Singapore-based investment firm, has contributed ₹3 billion (~$35.97 million).

As per earlier agreements, Temasek is also scheduled to invest an additional ₹9 billion (~$107.91 million).

The fund will be used by MEAL primarily to create and market an electric SUV portfolio with advanced technologies.

Founded in October 2022, Mahindra Electric Automobile focuses on a broad range of activities related to electric vehicles, including the design, development, manufacturing, and marketing of 4-wheel passenger electric vehicles and their components.

In the financial year 2023-2024, MEAL reported a net worth of ₹32.07 billion (~$384.53 million) and income of ₹569.6 million (~$6.83 million), despite having no revenue from operations for the year.

In March 2023, the International Finance Corporation announced an investment of ₹6 billion (~$72.9 million) in a subsidiary of Mahindra & Mahindra to expand the reach of affordable electric three-wheelers and small commercial vehicles.

EV sales in India reached a record 486,669 units in the first quarter of 2024, a jump of over 40% year-over-year against the 347,676 units. Mahindra sold 1,982 electric four-wheelers during the quarter.