BANGALORE: Mahindra & Mahindra (M&M) on Wednesday announced the acquisition of a majority stake in Bangalore-based Reva Electric Car Company (RECC) Ltd. The companies signed an agreement according to which RECC will be renamed Mahindra Reva Electric Vehicle Company Limited and M&M will own 55.2 per cent equity in Mahindra Reva by a combination of equity purchase from promoters and a fresh equity infusion of over Rs 45 crore.
Mahindra Reva’s EV technology will be adapted for other M&M vehicles.
Pawan Goenka, President (Automotive & Farm Equipment Sectors), M&M and the newly elected Chairman of Mahindra Reva said, “This is a key strategic acquisition for Mahindra in its march towards sustainable mobility. M&M will hold 55.2 per cent, the Maini family 31 per cent, Dr Bell 11 per cent and employees will hold the rest of the stake.”
Over the next five to 10 years, the EV market across the world is expected to grow to 1.5 million to two million vehicles, he said. “In India, we project the growth rate for EVs anywhere between 80,000 and 100,000 vehicles by 2020. The existing manufacturing capacity of 6,000 vehicles at Reva plant in Bangalore would be upgraded to 30,000 in the new plant proposed to established,” he added.
Chetan Maini, Chief of Technology & Strategy, of the newly formed Mahindra Reva said, “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.”
Reva was established in 1994 as a joint venture between the Maini Group India and AEV LLC, California, US, to manufacture environment-friendly and cost-effective electric vehicles. After seven years of R&D Reva earned 10 patents and launched its first commercial vehicle in Bangalore in June 2001.