Mahindra & Mahindra has struck a deal to be a majority shareholder at Reva Electric Car Company. The company has picked up a 55.2% equity stake in Reva through equity purchase from the promoters as well as fresh equity infusion of Rs 45crore into the company.
Post the buyout, Reva Electric Car Company has been renamed as Mahindra Reva, and it will have Dr. Pawan Goenka as the Chairman of the new board. Mr. Chetan Maini will continue to be on the board and also be the chief of technology & strategy.
Mahindra has already demonstrated the execution of diesel hybrid tech on the Scorpio Hybrid and the hydrogen Alfa three-wheeler, and is currently working on an electric version of its mini-truck, Maxximo. Mahindra REVA’s EV tech will be adapted for these and other M&M vehicles. Mahindra REVA will now have access to Mahindra’s vehicle development technology and distribution network, thereby significantly enhancing its ability to launch a state-of-the-art electric vehicle for global markets.
Speaking on the acquisition, Mr Anand Mahindra, VC & MD, Mahindra & Mahindra said, “With issues such as climate change and carbon footprint taking centre stage globally, eco-friendly transportation becomes the need of the hour. Mahindra already has an established sustainable mobility solution programme and our association with REVA will only help us further expand our green footprint both in India and overseas”.
Dr. Pawan Goenka, President (Automotive & Farm Equipment Sectors), Mahindra & Mahindra said, “This is a key strategic acquistion for Mahindra in its march towards sustainable mobility. Mahindra and REVA bring complementary strengths together, ensuring that Mahindra’s engineering expertise, global distribution network, sourcing clout and financing support will give REVA vehicles a potential to significantly gain in market penetration while Mahindra benefits from REVA’s EV tech for its own products.”
Mr Chetan Maini, Chief of Technology and Strategy mentioned, “The EV market is poised to grow significantly and we concluded that in order to seize the opportunity we need the resources and experience of a major automotive manufacturer. As a result of Mahindra’s investment, Mahindra REVA will be able to scale, innovate and accelerate and so to deliver better products to more customers in more places.”