Mahindra to raise $2.2 mn, weighing funding options for its EV supercar unit: Report
By Team Newsable | First Published Sep 29, 2021, 12:39 PM ISTMahindra's alternatives include a merger with a blank-check firm and a prospective IPO of the EV supercar business in another country.
Mahindra & Mahindra Ltd is investigating ways to generate cash for its affiliate Automobili Pininfarina as the Indian manufacturer prepares to begin producing its $2.2 million electric hypercar, as reported by Bloomberg News. The Munich-based luxury electric vehicle division unveiled a prototype of the 1,900-horsepower Battista in 2019, with a peak speed of 350 km/h and a range of up to 500 km on a single charge. Mahindra's alternatives include a merger with a blank-check firm and a prospective IPO of the EV supercar business in another country. According to the report, it might aim to value the unit at approximately $500 million in any transaction, citing people with knowledge of the subject.
Also Read | 'No production days': Mahindra sees production hit in September due to chip shortage
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The firm declined to comment on the storey, and Automobili Pininfarina did not reply quickly to a request for comment from Reuters after business hours. Automobili Pininfarina had intended to produce 150 cars starting in 2020, but deliveries are now set to begin in early 2022, according to the report, which cited a representative for Automobili Pininfarina. In 2015, Mahindra paid $28 million for a 76.06 per cent share in Turin-based Pininfarina, the designer of some of the most famous Ferrari, Alfa Romeo, and Maserati vehicles. Automobili Pininfarina, located in Munich, was founded in 2018 as part of the company's effort to become a significant participant in the high-end electric car sector.
Also Read | Amid high fuel prices, chip shortages, Indian auto sales rose in August
In other news, due to semiconductor shortages, Indian carmaker Mahindra & Mahindra expects its automotive sector to reduce vehicle manufacturing by 20% to 25% in September. Semiconductor shortages have had a global impact on automakers. They've been informed that more suffering is on the way due to fierce rivalry for chip supply from the enormous consumer electronics industry. According to an exchange filing, Mahindra would observe 'no production days' of about seven days at its automotive division plants this month.
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