MAHINDRA ENTERS ELECTRIC CAR MARKET
Mahindra & Mahindra Ltd strengthened its position in the electric vehicle market with the acquisition of a majority stake in REVA Electric Car Co Ltd Bangalore. REVA Electric Car Co will be renamed Mahindra REVA Electric Vehicle Co Ltd.
Under the new agreement which was signed by both the companies, M&M will own 55.2% equity in Mahindra REVA by a combination of equity purchase from the promoters and a fresh equity infusion of approx US $10 million into the company. The buyout makes Mahindra a strong global player in the electric vehicle space.
After the buyout, the Board of Mahindra REVA was re-constituted under the chairmanship of Dr Pawan Goenka, President Automotive & Farm Equipment Sectors, Mahindra & Mahindra.
The new board includes five nominees from Mahindra & Mahindra, two from the Maini family, and one from AEV LLC, California (co-founders of REVA). An independent director will be added to the board subsequently. Mr Chetan Maini will continue to play a leading role in Mahindra REVA as Chief of Technology & Strategy and will continue to be on the board.
Under its core Sustainable Mobility initiative, Mahindra has been working for the last 10 years to develop green technologies and has demonstrated diesel hybrid technology on the Scorpio and hydrogen Alfa three wheelers. Mahindra has a pilot fleet operating with 100% bio-diesel and was the first to launch micro-hybrid technology in India with around 50,000 such micro-hybrids on the road today.
In EVs, over and above the electric three-wheeler Bijlee developed in 1999, it is also currently working on an electric version of its mini-truck, Maxximo. Mahindra REVA's EV technology will be adapted for these and other M&M vehicles. Access to strong EV technology will strengthen Mahindra's other current sustainability initiatives.
REVA is currently marketing its products in 24 countries around the world with an overall vehicle population of over 3500, making it one of the largest EV fleets 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.