Automobile manufacturer Mahindra & Mahindra has announced that the final tranche of investment by British International Investment (BII) in its subsidiary Mahindra Electric Automobile has been revised from ₹7.25 billion (~$84.74 million) to ₹6.5 billion (~$75.98 billion).

The final tranche is expected to be completed by March 31, 2025. This brings BII’s total investment in Mahindra Electric Automobile to ₹18.5 billion (~$216.28 billion), resulting in a 2.64%-4.58% shareholding on a fully diluted basis.

To date, BII has invested ₹12 billion (~$140.27 million) in Mahindra Electric Automobile.

Mahindra confirmed that this change will not affect Mahindra Electric Automobile’s overall business plan, ensuring continued alignment with its strategic goals.

Mahindra plans to invest ₹120 billion (~$1.43 billion) in Mahindra Electric Automobile by March 31, 2027. In an earlier stock exchange filing, the company said it expects to generate enough operating cash through its auto division to cover all capital investment needs without requiring additional external funding.

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.

The  BII has committed $33.5 million to India’s electric vehicle (EV) sector. This funding aims to strengthen the EV ecosystem, drive technological advancements, and address barriers to adoption, contributing to India’s energy transition and decarbonization goals.

The investment by BII includes $15 million in debt financing for Everest Fleet, enabling the company to expand its EV portfolio by adding 1,300 EVs across six cities, including Bengaluru and Delhi. This move is expected to create driver employment opportunities and boost zero-emission vehicle adoption in urban areas. Additionally, TI Clean Mobility will receive $15 million in equity investment to scale its manufacturing of low-carbon vehicles, including electric three-wheelers, trucks, and tractors.

BII will also provide $3.5 million in equity to Vecmocon, which the company will use to enhance research and development for EV components like battery management systems and motor controllers and expand its presence in the commercial EV market. BII’s investments align with its strategy of channeling $1 billion into climate-mitigating initiatives in India. Recent funding has also supported companies like ChargeZone, which targets building 10,000 EV charging stations by 2027, and Battery Smart, a battery-swapping network.