Mumbai/Bangalore: Utility vehicle maker Mahindra & Mahindra, set to buy a 55 percent stake in pioneering electric car maker Reva, aiming to be a significant player in the global electric vehicle industry.
The deal gives Mahindra a foothold in the small but increasingly crowded electric vehicle industry, which is attracting global players such as Toyota and General Motors as they search for cleaner alternatives to gasoline.
“Mahindra wants to consolidate its position as a company which wants to manufacture everything on wheels,” said Arun Kejriwal, director of KRIS Research. “This acquisition would go a long way in helping achieve this.”
Mahindra is taking the majority stake in Reva Electric Car Company by buying a part of the founder’s stake, and investing an additional Rs. 450 million ($9.5 million) in fresh equity.
It did not disclose details of how much it was paying for the entire holding.