Mahindra and Mahindra it had bought a majority stake in Bangalore-based Reva Electric Car Co., aiming to be a significant player in the global electric vehicle industry.
The move will give Mahindra access to EV technology as demand for electric cars is predicted to rise and is seen by analysts as being part of Mahindra’s long-term strategy.
Under the agreement, REVA Electric Car will be renamed Mahindra REVA Electric Vehicle Co Ltd. Mahindra is taking the majority 55.2% stake in REVA Electric Car Company by buying a part of the founder’s stake, and investing an additional 450 million rupees ($9.5 million) in fresh equity.
REVA is currently marketing its products in 24 countries across the world with an overall vehicle population of over 3500, arguably the largest EV fleet globally.
REVA recently premiered its next generation electric car models, the NXR and NXG which received an enthusiastic response. Mahindra REVA will now have access to Mahindra’s vehicle development technology and distribution network, significantly enhancing its ability to launch a state-of-the-art electric vehicle for global markets.
REVA was formed in 1994 as a joint venture between the family-owned Maini Group and AEV of the United States to manufacture eco-friendly cars.
The Bangalore company was one of the first companies to launch electric vehicles on a commercial basis in 2001.
