• Mahindra to have 55.2% equity in REVA Electric Car Company (REVA)
• Company to be renamed Mahindra REVA Electric Vehicle Company (Mahindra REVA)
• Mahindra REVA to leverage Mahindra’s vehicle development expertise
• Mahindra REVA electric technology to be deployed in Mahindra vehicles
• Dr Pawan Goenka elected Chairman of the newly constituted board

Mahindra, REVA joint venture

Indian Automobile major Mahindra & Mahindra strengthened its position in the Electric Vehicles domain with the acquisition of a majority stake in bangalore-based electric car manufacturer REVA Electric Car Company. Under the new agreement 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 over Rs 45 crore (approx $10 million) into the company.

Dr Pawan Goenka, President (Automotive & Farm Equipment Sector), Mahindra & Mahindra will be the chairman of the board. Reva, a joint venture between the Maini Group and AEV LLC, California (co-founders of REVA), will be renamed Mahindra REVA Electric Vehicle Company (Mahindra REVA). 

Under its core Sustainable Mobility initiative, Mahindra has been working for the last 10 years on developing 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 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.

“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 solutions programme and our association with REVA will only help us further expand our green footprint both in India and overseas” said Anand Mahindra, VC&MD, Mahindra & Mahindra.

Dr Pawan Goenka, President (Automotive & Farm Equipment Sectors), Mahindra & Mahindra and the newly elected Chairman of Mahindra REVA said, “This is a key strategic acquisition for Mahindra in its march towards sustainable mobility.  Mahindra and REVA bring together complementary strengths. With Mahindra’s vehicle engineering expertise, global distribution network, sourcing clout and financing support, REVA’s vehicles have the potential to significantly gain in market penetration. Mahindra will also benefit from REVA’s EV technology for its own products.”

Mr Chetan Maini, Chief of Technology & Strategy, of the newly formed Mahindra REVA mentioned, “The EV market is poised to grow significantly and we concluded that in order to seize the opportunity we needed the resources and experience of a major automotive manufacturer. In Mahindra we have found a company that not only shares our vision of principled and sustainable growth but one that also has a reputation for good corporate governance. 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”.

Check out these stories also:

1. Mahindra SsangYong Rexton, electric car Reva NXR to roll out in India by Oct-Nov
2. General Motors India, REVA jointly develop electric vehicles in Indian market
3. Mahindra to unveil Ssangyong SUVs Rexton, Korando, electric cars at Delhi Auto Expo
4. Mahindra REVA launches REVAi in Nagpur
5. Mahindra to roll out maiden SUV XUV500

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