British International Investment and Mahindra will each invest up to $250 million in the automaker's new electric vehicle unit, as Mahindra aims to lead sales of electric SUVs in the country.
BII will have a 4.8 percent ownership in the business, which will focus on electric passenger vehicles.
The unit, with a $9.1 billion valuation, will be wholly owned by Mahindra, the company said in a statement late on Thursday.