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 Indian automaker Mahindra and Mahindra Ltd is in advanced talks with global investors to raise between $1 billion and 1.3 billion to accelerate the expansion of its electric vehicle unit, Mint reported on Wednesday.

The company plans to raise capital by selling shares in its unit, currently valued at over $9.1 billion, in multiple tranches over the next two fiscal years, the report said, citing people familiar with the matter.

Mahindra did not immediately respond to Reuters' request for comment.

Shares of Mahindra rose as much as 1.7% on Wednesday, but are still down over 6% so far this year, compared to a 7% rise in rival Tata Motors

The Mumbai-headquartered conglomerate may raise as much as $800 million to $1 billion in the first tranche as early as the first half of financial year 2024, the newspaper said.

Mahindra, which is known for its sports utility vehicles (SUVs) and jeeps, has stepped up investments to bolster its EV capacity as the Indian government aims to increase the share of EVs to 30% of total annual car sales by 2030 from 1% currently.

In December, the company unveiled plans to invest 100 billion rupees ($1.21 billion) to set up an EV manufacturing plant near the western city of Pune, taking on Tata Motors, which dominates India's EV market.

Tata Motors is also in talks with sovereign wealth funds and private equity investors to raise up to $1 billion via a stake sale in its EV business, Economic Times reported in February.

($1 = 82.6290 Indian rupees)