India's Mahindra to invest $121 million to set up EV facility in Telangana state

BENGALURU (Reuters) -Indian automaker Mahindra and Mahindra Ltd said on Thursday it will invest 10 billion rupees ($121 million) to set up a manufacturing facility in the southern state of Telangana to make electric three- and four-wheelers.

The investment will be made over eight years at the company’s Zaheerabad plant to develop its last mile mobility business, such as cargo and passenger vehicles, Mahindra said in a regulatory filing.

The company has signed an agreement with the Telangana government for approvals to expand the plant.

Mahindra has stepped up investments to bolster its EV capacity as the Indian government aims to increase the share of electric vehicles by the end of this decade.

In December, the company unveiled plans to invest 100 billion rupees to set up an EV manufacturing plant near the western city of Pune, taking on rival Tata Motors Ltd which dominates India’s EV market.

($1 = 82.4940 Indian rupees)

(Reporting by Biplob Kumar Das in Bengaluru; Editing by Janane Venkatraman and Sriraj Kalluvila)