Mahindra's EV Division: Strategic Leadership and Funding Fuel a Comeback in India's Electric Market

The Indian electric vehicle (EV) market is a battleground, with Tata Motors dominating headlines and market share. Yet, Mahindra & Mahindra's newly restructured Mahindra Electric Automobile Limited (MEAL) is positioning itself as a formidable contender. Through strategic leadership reshuffles, a unified management council, and a series of landmark funding milestones, MEAL is closing the gap with its rival. For investors, this shift signals a compelling opportunity to capitalize on India's EV boom—provided they're willing to navigate short-term volatility.

Leadership Restructuring: A Blueprint for Operational Precision

At the heart of MEAL's transformation is the appointment of Kausalya Nandakumar as COO in April 2023. With over 15 years at Mahindra, Nandakumar brings a rare blend of operational expertise and gender-diverse leadership—a critical edge in India's evolving EV sector. While she stepped back from direct sales leadership in 2024, her role as COO has focused on scaling MEAL's P&L discipline and integrating its EV strategy with Mahindra's broader automotive ecosystem. This move reflects a deliberate shift toward operational rigor, a stark contrast to Tata's more fragmented approach across its subsidiaries.

Backing Nandakumar is MEAL's Management Council, a cross-functional body led by Chairman Rajesh Jejurikar and including executives like Veejay Nakra (Joint Managing Director) and R Velusamy. This council bridges Mahindra Automotive's traditional strengths in manufacturing and supply chains with MEAL's EV ambitions. The result? A streamlined decision-making process that leverages Mahindra's existing scale—something Tata's decentralized structure struggles to replicate.

Funding Milestones: Fuel for Growth and Investor Confidence

MEAL's recent funding achievements underscore its credibility as a top-tier EV player. In July 2025, British International Investment (BII) finalized its ₹1,850 crore investment, reducing its final tranche by ₹75 crore due to revised valuation metrics. Combined with Temasek's ₹2,255 crore stake, these investments signal confidence in MEAL's ability to execute its ₹16,000 crore capex plan for EV development through FY27.

The syndication of climate-focused investors—such as the Asian Infrastructure Investment Bank (AIIB) and Finnfund—adds geopolitical heft. These backers aren't just capital providers; they're validating MEAL's role in India's energy transition.

A rising Mahindra stock could reflect investor optimism in MEAL's EV strategy, even as Tata's dominance persists.

Closing the Gap with Tata: The Product Play and Financial Realities

MEAL's product lineup is its clearest competitive weapon. The BE 6 and XEV 9e SUVs, launched in early 2025, are direct rivals to Tata's Nexon EV and Tigor EV. With a 90,000-unit annual production capacity at its Chakan plant, MEAL aims to deliver 200,000 EVs annually by 2030—a target Tata has yet to clearly articulate.

Financially, MEAL's FY25 results reveal a company in growth mode: ₹2,264 crore in revenue (up from ₹800 crore in FY24) but a ₹210 crore net loss, reflecting heavy R&D and scaling costs. The path to profitability hinges on achieving 20–30% EV penetration in SUV sales by 2027, a milestone critical to offsetting losses.

Risks and the Investment Case

The risks are clear. Execution delays in ramping up production or a price war with Tata could strain margins. Additionally, MEAL's reliance on Mahindra's parent company for capital—₹5,454 crore invested to date—leaves it vulnerable to macroeconomic headwinds.

Yet the valuation multiples tell a bullish story. BII and Temasek's stakes imply a MEAL valuation between ₹40,000–80,000 crore, which, at 15–30x FY25 revenue, aligns with global EV peers like Tesla. More importantly, MEAL's IPO roadmap (FY28–FY30) offers a clear exit for early investors—and a liquidity event that could revalue Mahindra's stock.

Conclusion: A Strategic Buy for the Long Run

MEAL's restructuring, funding, and product pipeline suggest it's no longer a laggard but a credible challenger to Tata. For investors with a 3–5 year horizon, Mahindra's EV division offers exposure to India's EV boom at a valuation discount to its rival. The key catalysts ahead—delivery ramp-up of the BE 6, progress toward its IPO, and margin improvements—could push Mahindra's stock higher, even as Tata remains the market leader.

In a sector where execution often trumps ambition, MEAL's moves are a masterclass in strategic alignment. This is a stock to watch—and buy—if you believe in leadership's ability to turn ambition into profit.