In a significant move for sustainable transportation, Mahindra & Mahindra Ltd. (M&M), a leading automotive and services enterprise, has joined forces with the India-Japan Fund (IJF), managed by the National Investment and Infrastructure Fund Limited (NIIF). The collaboration involves an investment of INR 400 Crore by IJF in Mahindra Last Mile Mobility Limited (MLMML), M&M’s subsidiary focusing on eco-friendly mobility solutions.
The IJF, a robust INR 4900 Crore (approx. USD 600 Million) fund, was established with significant backing from the Japan Bank for International Cooperation (JBIC) and the Government of India. It aims to propel investments in environmentally sustainable ventures, especially those reducing carbon emissions. This initiative also serves to bolster investments from Japanese companies in India and fosters Indo-Japanese corporate collaborations.
This partnership, announced in Mumbai on January 11, 2024, marks IJF’s inaugural investment since its inception in August 2023. The investment in MLMML, valued at up to INR 6600 Crore, will secure IJF an ownership stake ranging between 6.06% and 8.25% in MLMML.
MLMML, a subsidiary of M&M, was established for streamlining the company’s last-mile mobility segment, which includes three-wheelers like Alfa, Treo, Zor, and the four-wheeler SCV brand Jeeto. Since its inception in September 2023, MLMML has been at the forefront of revolutionizing electric three-wheeler growth in India, making significant strides in sustainable transportation.
Dr. Anish Shah, Group CEO & MD of the Mahindra Group, expressed enthusiasm about the partnership with NIIF through IJF. He highlighted Mahindra’s commitment to sustainable mobility solutions and its goal to be ‘Planet Positive’ by 2040.
Krishna Kumar G, Partner at India Japan Fund, NIIF, emphasized the fund’s commitment to low-carbon emission strategies and the importance of the investment in MLMML. He noted the potential transformative impact on the last-mile mobility sector, contributing to economic growth, job creation, and environmental sustainability.
Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors at M&M, also commented on the partnership, lauding MLMML’s role in electric three-wheeler growth and its market leadership. He underscored the importance of electric vehicles in profitable solutions for micro-entrepreneurs and the goal of increasing market penetration through sustainable technologies.
This strategic investment by IJF not only underlines NIIF’s dedication to promoting sustainable mobility solutions but also strengthens the collaboration between India and Japan in the high-growth sector of environmentally friendly transportation.
