The Munich-based luxury electric vehicle unit had in 2019 rolled out a prototype of its 1,900-horsepower Battista, which had a top speed of 350 km/hour and a range up to 500 km in a single charge.
Mahindra's options include a merger with a blank-check company and a potential overseas listing of the EV supercar business.
It could seek to value the unit at around $500 million in any deal, the report said, citing people with knowledge of the matter.
The company declined to comment on the report, while Automobili Pininfarina did not immediately respond to Reuters request for comment outside business hours.
Automobili Pininfarina originally planned to build 150 cars beginning 2020, but now deliveries are due to start early in 2022, the report said, citing a spokesperson for Automobili Pininfarina.
Mahindra bought a 76.06% stake in Turin-based Pininfarina, the designer of some of the most iconic Ferrari, Alfa Romeo and Maserati models, in 2015 for $28 million.
As part of its push to become a key player in the high-end electric vehicles segment, it set up Munich-based Automobili Pininfarina in 2018.
(Reporting by Vishwadha Chander in Bengaluru; Editing by Arun Koyyur)