India’s automotive conglomerate Mahindra & Mahindra (M&M) has secured a ₹12 billion (~$145 million) investment from Temasek, a global investment firm headquartered in Singapore, to help boost its four-wheel electric vehicle (EV) footprint.

The binding agreement will see Temasek investing in Mahindra Electric Automobile Limited (MEAL), the four-wheeler passenger electric vehicle company, through Compulsorily Convertible Preference Shares.

Temasek’s infusion of funds will bolster MEAL’s valuation, propelling it from ₹700.7 billion (~$8.4 billion) to ₹805.8 billion (~9.7 billion), a 15% increase.

As part of the deal, Temasek will hold a 1.49% to 2.97% stake in MEAL, joining forces with British International Investments (BII) as an investor in the electric mobility subsidiary.

Anish Shah, the Managing Director & CEO of Mahindra & Mahindra, said, “We are extremely delighted to have Temasek as a partner in our electric SUV journey. Globally known for their strong governance, Temasek’s investment is a step forward as we execute our strategy towards future leadership in electric SUVs.”

The company aims to capture 20% -30% of Mahindra’s SUV sales from electric vehicles by 2027.

Mahindra Group said the collaboration aligns with its overarching focus on Environmental, Social, and Governance responsibilities.

Headquartered in Singapore, Temasek operates through 13 offices in nine countries and has a net portfolio value of $287 billion as of March 31, 2023.

Recently, the International Finance Corporation IFC, a member of the World Bank Group, 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.

In India, sales of electric vehicles (EVs) reached 371,340 units in the second quarter of 2023, a year-over-year increase of 66% compared to 223,293 units sold in the same period last year.