Indian billionaire Anand Mahindra is spending $1.4 billion on developing electric cars

Mumbai-based Mahindra & Mahindra – controlled by Indian billionaire Anand Mahindra – plans to invest 120 billion rupees ($1.4 billion) to develop electric vehicles as the sports utility vehicle maker pivots to cleaner car technology.

Mahindra Electric Automobile plans to develop electric SUVs amid the EV boom in India, the company said in a filing to the Indian stock exchange on Thursday. India is seeking to reduce carbon emissions from the transport industry to achieve its goal of net zero carbon by 2070.

The company is pivoting toward electric cars, even as demand for its gas-guzzling vehicles remains robust. Its Mahindra XUV 3XO recorded over 50,000 bookings within an hour when the SUV went on sale this week.

Reflecting strong sales, Mahindra & Mahindra’s net profit for the fourth quarter ended March rose 32% to 20 billion rupees, beating analysts’ estimates. The stock rose 7.5% to 2,550.1 rupees in afternoon trade in Mumbai, heading for a record close.

To help finance the transition from internal combustion engine cars to electric cars, British International Investment has invested 12 billion rupees in Mahindra Electric, with plans to invest another 7.25 billion rupees in the company. Singapore’s state-linked investment company Temasek has also committed to invest 12 billion rupiah in the company.

With a real-time net worth of $3.4 billion, Anand Mahindra belongs to the third generation of the family that controls the conglomerate with interests across multiple industries, including banking, technology and real estate. The tycoon also has a small but valuable stake in Kotak Mahindra Bank.

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