Under the agreement, M&M will own the stake by a combination of equity purchase from the promoters and a fresh equity infusion of around INR4.5bn into the company.
Post the buyout, the board of Mahindra REVA has been re-constituted under the chairmanship of Dr Pawan Goenka, president of automotive and farm equipment sectors at Mahindra & Mahindra.
According to Mahindra, it has a pilot fleet operating with 100% bio-diesel and 50,000 micro-hybrids on the road today. It is currently working on an electric version of its mini-truck, Maxximo. Mahindra REVA’s EV technology will be adapted to these and other M&M vehicles.
The company said that REVA is currently marketing its products in 24 countries with an overall vehicle population of around 3500. REVA had recently premiered its new electric car models, the NXR and NXG.
Mahindra REVA will now have access to M&M’s vehicle development technology and distribution network, enhancing its ability to launch electric vehicle for global markets.
Anand Mahindra, vice chairman and managing director of M&M, 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 solutions programme and our association with REVA will only help us further expand our green footprint both in India and overseas.”
Chetan Maini, chief of technology and strategy at Mahindra REVA, said: ”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.”
