Mahindra and Mahindra acquires 55.2% shares in Electric Car maker Reva

Dr. Pawan Goenka & Chetan Maini

In a major deal between Indian giant Mahindra & Mahindra and the world famous electric car company – Reva, Mahindra has signed a deal to buy out 55.2% shares in Reva electric car company. The company will be renamed as Mahindra REVA Electric Vehicle Co Ltd with M&M’s President for the Automotive business Mr Pawan Goenka as its chairman. REVA’s Deputy Chairman and Chief Technology Officer Mr Chetan Maini will play the role of Chief of Technology and Strategy in Mahindra REVA.

Mahindra will also invest in fresh equity worth Rs 45 crore ($9.5 million) in the company. M&M will also adapt Reva’s Electric Vehicle technology for Bijlee – the electric three-wheeler and its mini truck – Maxximo among other M&M products.

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

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”.

Picture Courtesy: AutocarIndia