CHENNAI: Mahindra & Mahindra has announced a capex of Rs 37,000 crore to be spent over the next three years – from FY25 to FY27.
The company plans to spend Rs 14,000 crore on petrol and diesel vehicles while another Rs 12,000 crore has been lined up for the group’s EV business. The group’s farm and services businesses get a cash deployment of Rs 5,000 crore each.Another Rs 1,000 crore has been lined up for investments in other subsidiaries. This is excluding cell localisation spend, M&M executives said.
Much of this will be spent in bringing in both new products as well as refreshes. In auto, the capex spend will be Rs 8,500 crore on ICE SUVs and Rs 4,000 crore on commercial vehicles, while another Rs 1,500 crore will be spent on sustenance. The company has announced nine new ICE (internal combustion engine) products, seven new battery electric products and seven new light commercial vehicles by 2030. The ICE launches include three ‘mid cycle enhancements’ including the recently launched XUV 3XO & six new SUVs. The seven LCV include five ICE & two EVs in sub-3.5 tonne category.
M&M and its auto division expect to generate sufficient operating cash to satisfy the capital investment needs therefore M&M and British International Investment (BII) have “mutually agreed to extend the timeframe for the final tranche of BII’s planned investment of Rs 725 crore in MEAL (EV business) and will jointly assess whether additional investment is required by Dec 31, 2024,” said Anish Shah, CEO & MD, Mahindra Group. BII has already invested Rs 1,200 crore and Temasek has invested another Rs 300 crore so far in MEAL. The company’s standalone net profit for FY24 was up 48% at Rs 10,718 crore.
The company’s auto division currently has 220,000 bookings including 50,000 open bookings for XUV 3XO and 59,000 bookings for Thar.
The company plans to spend Rs 14,000 crore on petrol and diesel vehicles while another Rs 12,000 crore has been lined up for the group’s EV business. The group’s farm and services businesses get a cash deployment of Rs 5,000 crore each.Another Rs 1,000 crore has been lined up for investments in other subsidiaries. This is excluding cell localisation spend, M&M executives said.
Much of this will be spent in bringing in both new products as well as refreshes. In auto, the capex spend will be Rs 8,500 crore on ICE SUVs and Rs 4,000 crore on commercial vehicles, while another Rs 1,500 crore will be spent on sustenance. The company has announced nine new ICE (internal combustion engine) products, seven new battery electric products and seven new light commercial vehicles by 2030. The ICE launches include three ‘mid cycle enhancements’ including the recently launched XUV 3XO & six new SUVs. The seven LCV include five ICE & two EVs in sub-3.5 tonne category.
M&M and its auto division expect to generate sufficient operating cash to satisfy the capital investment needs therefore M&M and British International Investment (BII) have “mutually agreed to extend the timeframe for the final tranche of BII’s planned investment of Rs 725 crore in MEAL (EV business) and will jointly assess whether additional investment is required by Dec 31, 2024,” said Anish Shah, CEO & MD, Mahindra Group. BII has already invested Rs 1,200 crore and Temasek has invested another Rs 300 crore so far in MEAL. The company’s standalone net profit for FY24 was up 48% at Rs 10,718 crore.
The company’s auto division currently has 220,000 bookings including 50,000 open bookings for XUV 3XO and 59,000 bookings for Thar.