Mahindra & Mahindra is looking to attract private equity (PE) funding for its decade-old electric vehicle business. This is part of the company’s newly-announced strategy of looking at fewer businesses which would be profitable in the long run.
It marks a sharp shift in the company’s strategy given that just six months ago it was open to a large stake sale, said a person in the know of the development. With the pandemic having caused havoc, especially in the automotive industry, the company feels it better to stay fully invested in its electric vehicle business rather than ceding space to a new player, especially as the government remains bullish on this sector, said the person.
Mahindra & Mahindra’s managing director, Pawan Goenka, said while the company would not sell a stake in Mahindra Electric or monetise its assets, the company is open to funding coming in via private equity or similar investors.