Indian automaker giant Mahindra & Mahindra is looking for investors for its domestic electric vehicles business, and is finalizing investment plans for its Automobili Pininfarina unit, the group’s managing director said on Friday.
Since the last few years Mahindra trying to be a key player in mass-market electric vehicles (EVs) through its unit Mahindra Electric and in the high-end segment through Europe-based Pininfarina, Pawan Goenka, Managing Director of Mahindra and Mahindra Limited, said.
Mahindra & Mahindra is seeking financial or strategic investors for Mahindra Electric, he added in a news conference after the group’s quarterly earnings. For Pininfarina, it is finalizing how much investment it needs for future projects and will then decide how to raise funds, this may include strategic partners, Goenka said in the same news conference.
Interestingly, Mahindra & Mahindra said in June that it was evaluating all its businesses and would continue to invest only in those where it sees a strategic advantage or can get an 18% return.
In this evaluation, Mahindra has also decided not to proceed with the bid made by its North American unit to supply vehicles to the U.S. Postal Service, group CFO Anish Shah told the same press conference, conducted online.
The project would have required an investment of close to $500 million and given “the current environment and the focus on capital allocation” it would not have met the company’s targeted return on investment, Goenka added in his statement.
According to Shah, the North American business is also under review and the automaker will have more clarity on its future once litigation with carmaker Fiat Chrysler Automobiles NV (FCA) in that region ends.
Mahindra reported a sharp fall in profit for the April-June quarter to 1.12 billion rupees ($15 million), compared with 23.14 billion rupees a year earlier, amid pandemic which caused lockdowns and disruptions across the industry.