Mahindra & Mahindra, India’s biggest SUV maker, has agreed to buy a controlling stake of 55% in Bangalore-based Reva Electric Car. The move is aimed at giving Mahindra access to technology as demand for alternative-energy vehicles is predicted to rise and is seen by analysts as being part of Mahindra’s long-term strategy.

Mahindra is buying Reva stock and about US$10m in new shares, it said in a statement to the Bombay Stock Exchange on Wednesday. No overall value has been given for the transaction.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

GM has been working with Reva on developing an electric version of its Spark small hatchback; Reva would not comment on whether the deal with GM would continue under Mahindra’s ownership but Chetan Maini, Reva’s head of technology and strategy, told reporters that GM was looking at “other options”.

Reva has sold more than 3,500 vehicles worldwide and operates in 24 countries. It is building a plant in the southern Indian state of Karnataka to make as many as 30,000 vehicles a year.

Last month Mahindra took over Renault‘s stake in a joint venture to built the Logan in India as it expands its passenger car portfolio. India’s 1.7m new car market is forecast to more than double over the next five years.

See Also:

“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,” Maini said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Reva plans to begin selling the lithium-ion-powered Reva NXR as early as October. The car will cost about EUR14,995 (US$18,482) in Europe, the automaker said last year. The three-door, four-seat hatchback has a top speed of 65mph and a range of 100 miles per charge.

Reva was established in 1994 as a venture between the Maini Group and California-based AEV. The company showed its first electric car in May 2001.