British International Investment (BII), the UK’s development finance institution, has fulfilled its 2022 commitment to India’s electric vehicle (EV) sector with an additional investment of INR 650 crore in Mahindra Electric Automobile Limited (MEAL). This investment is part of a broader initiative to mobilize international funding for India’s EV industry, according to a press release issued by BII.

The recent funding brings BII’s total investment in MEAL to INR 1,925 crore, as initially pledged in its partnership with Mahindra & Mahindra in 2022. BII has made this investment through BII India EV LP, a managed vehicle financed by a syndicate of climate-focused investors. This group includes the Asian Infrastructure Investment Bank (AIIB), OP Finnfund Global Impact Fund I, and Finnfund.

The shareholding structure of MEAL remains unchanged, with Mahindra & Mahindra, Temasek, BII, and BII India EV LP as stakeholders.

The partnership between BII and Mahindra & Mahindra aims to advance the adoption of electric vehicles in India. Since the initial agreement, Temasek joined as an investor in 2023, further supporting the sector’s growth.

Representatives from the participating investors highlighted the strategic importance of the initiative. Samir Abhyankar, Managing Director at BII, stated that the investment aligns with the goal of fostering sustainable economic development in India while attracting like-minded investors to the EV space.

Helena Teppana from Finnfund emphasized the health benefits of expanding electric mobility, particularly in congested urban areas. Similarly, Najeeb Haider from AIIB noted the investment’s role in supporting India’s climate and energy transition objectives through sustainable infrastructure development.

This development underscores ongoing efforts to enhance the accessibility of electric vehicles in India, contributing to the country’s broader climate and sustainability goals.