Mahindra & Mahindra, India's largest utility vehicles and tractor maker, said on Wednesday it would buy a 55.2 per cent stake in Reva Electric Car Company.
It will buy shares from the founders of Reva. Additionally, it will invest in fresh equity worth Rs 45 crore ($9.5 million), Mahindra said in a statement. The company will now be called Mahindra Reva Electric and will be headed by Pawan Goenka.
This marks an important turning point for Reva which has been in the business of developing and manufacturing electric cars for nearly a decade. Even though the original Reva has seen not more than 3000 homes in India and abroad over the last few years, the company has made a name for itself as an electric car solutions provider.
Late last year it announced a tie-up with General Motors India to provide battery packs and motors for the electric version of the Spark which is expected to go on commercial sale in the next few months. It is not known at this point whether the deal stands as it is after Mahindra's entry.
Reva is also making a re-entry into the car space with its new products NXG and NXR - two and four-seater cars with enhanced range and more space. The cars will be built at its new expanded facility in Karnataka which now has an installed capacity of 30,000 units. The four-seat NXG is expected to roll out later this year for both Indian and export markets.