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Old 27th May 2010, 11:25   #16
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Just what RECC needed, at a time when they're coming up with new launches, a good dealer network to back them up. The only issue now, being pricing. Let's see how M&M addresses that.
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Old 27th May 2010, 11:26   #17
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I wonder how the valuation was done, 45cr seems undervalued for Reva. If only turnover of sales is considered then it might be realistic but during a merger or buyout many other factors are taken in - brand's goodwill,future as per market trend,etc . All of which seems VERY bright for Reva.

Nonetheless, M&M has got a steal deal ! No better way to spend their spare change.
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Old 27th May 2010, 11:36   #18
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This is just my speculation, but it could have been a reason Maini started looking in a different direction:

If anyone has seen the docu-movie "Who Killed the Electric Car", I don't think GM was very serious about going electric. GM apparently already has pretty decent electric technology for about a decade, but they are not bringing it out. IMO GM will bring out its tech once other cos are more commercially successful with it. In the meantime, they may continue to improve it in-house.
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Old 27th May 2010, 12:49   #19
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Quote:
Originally Posted by GTO View Post
I'm surprised no other manufacturer gave Mahindra stiff competition for Reva's ownership. With near zero local R&D, this could have been an opportunity for Maruti. And relatively dirt cheap too (50 crores is puff cake in the auto industry). With newer launches in the hatchback segment, Maruti could have fiercely guarded its turf / marketshare with electric options. I have a feeling that electric Altos, WagonRs and Swifts would have simply flown off showroom floors.
Sadly many car manufacturers still don't quite recognize the potential of an electric car with a solar panel on top. In a country like India, that's a virtually always full tank. The car could go on and on all day. If I had one on my trip to Pandharpur, I could have charged a couple more cars with my solar panel (my Santro just baked in the extreme heat for close to 12 hours).

Kudos to Chetan Maini who has single-handedly pursued and fruitified his dream of building electric vehicles. It's not easy to move up from lead-acid battery powered vehicles to a solar-powered li-ion battery powered vehicles facing as many odds as he has. The government should waive off the excise duty, sales tax, octroi and toll for the electric vehicles.
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Old 27th May 2010, 12:53   #20
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Quote:
Originally Posted by Sahil View Post
I wonder how the valuation was done, 45cr seems undervalued for Reva. If only turnover of sales is considered then it might be realistic but during a merger or buyout many other factors are taken in - brand's goodwill,future as per market trend,etc . All of which seems VERY bright for Reva.

Nonetheless, M&M has got a steal deal ! No better way to spend their spare change.
M&M have only acquired a majority stake. They haven't bought the whole company, yet. I am sure the valuation for this deal would be different. Also don't forget Maini will now get access to the distribution channels and A.S.S. of Mahindra.

Shall we also see electric tractors and solar-powered water pumps? That would be an interesting thought.
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Old 27th May 2010, 13:37   #21
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So now can we expect a diesel-electric Logan , Scorpio , Xylo ?
With Mahindra having brave plans for the US this move would be another step in the right direction .
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Old 27th May 2010, 13:40   #22
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I see the electric Maxximo coming first. Moreover, Hybrids hold the key in USA where Mahindra have chalked out huge plans. So this will make their job easier to develop EVs of the future.

I heard that Renault was also looking at RECC but there is no word on their bid. They want to bring their range of EVs to India and RECC could have been a good partner minus the ***. Mahindra seemed th best bet for RECC and it will be very interesting to see how the NXR fares.
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Old 27th May 2010, 14:06   #23
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Nissan Leaf is currently sold out (pre-orders). Hope its a start to the electric car that was needed.
Solar panel on the car will take you through for a couple of kilometres after hours of charging.

By the way, Mahindra has invested $10 million. It has bought the shares for a un-disclosed sum. So, its not really buying 52 % of the company for $10 million.

As a result, NXR is postponed to end of next year from this year end. GM is re-considering its decision to use Reva technology.

Last edited by srishiva : 27th May 2010 at 14:10.
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Old 27th May 2010, 18:46   #24
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Quote:
Originally Posted by KRf1 View Post
So now can we expect a diesel-electric Logan , Scorpio , Xylo ?
With Mahindra having brave plans for the US this move would be another step in the right direction .
Mahindra have already launched a Micro-Hybrid version of the Scorpio, with a battery pack in the rear (that's how it was in one of the auto mags a year or so ago). While you aren't going to see all the M&M vehicles becoming hybrid or battery powered, considering they are making a foray into the US market, the Scorpio would surely get more battery power, IMO. It should then give a fierce competition to the famous guzzlers in the US.
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Old 27th May 2010, 20:01   #25
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Very very good move by Mahindra. What will happen to Spark electric?
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Old 27th May 2010, 21:32   #26
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Mahindra is on a Roll. first Kinetic's 2-wheeler business and now RECC. Also news are doing the round that Mahindra is looking to take up stake in ICML.
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Old 28th May 2010, 00:21   #27
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Very very good move by Mahindra. What will happen to Spark electric?
Spark Electric is history, even before it was made.

Mahindra was rumoured to be in talks with ICML, I am not exactly sure if this acquisition would be to gain some knowledge/technology or just to kill off a budding competitor and increase its own presence.

The ICML Rhino has been a much neglected contender which, sadly, hasn't been doing too great on the street. I test-drove it and it was a magnificent drive. The Rhino Rx has a Rover engine, but I doubt if that's what Mahindras are after.
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Old 28th May 2010, 05:49   #28
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Quote:
Originally Posted by honeybee View Post
Kudos to Chetan Maini who has single-handedly pursued and fruitified his dream of building electric vehicles. It's not easy to move up from lead-acid battery powered vehicles to a solar-powered li-ion battery powered vehicles facing as many odds as he has. The government should waive off the excise duty, sales tax, octroi and toll for the electric vehicles.
To be fair, this guy has actually been at this with a passion from college days. Actually built a car and won a solar car race. The family bet heaviliy on his passion and if it was not for private equity, it would have given them a bad time!

Quote:
Originally Posted by SirAlec View Post
Now maini is selling his venture to M&M.
I wonder what he did with his million of dollars that he received from some Environmental crazy NGO as grant for improving it.
I think the Maini's have diluted their holding, the private equity folks have been bought out. Most of the money coming in goes for infrastructure etc and product development.

Considering the resources, the engineering capability of RECC is pretty good but in a new tech firm, something has got to give so distribution, lobbying the governments, vendor development did not get the focus that was required, M&M will bring this to fruition. If they can achive economies of scale with m&m small trucks, it is a win win for all!
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Old 28th May 2010, 08:45   #29
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If you can read today's ET (Mumbai Edition), it has a half-page article (on the last page) on the reasons behind the Reva stake sale. A new thing I discovered is the Maini family has close ties with the Mahindra family :o

Anyways, Chetan Maini says in this interview the biggest factor behind the strategic stake sale has been the increasing focus of many of the carmakers on the electric vehicle technology. He was limited by the limited capital infused by the two private equity firms, so he took a loan to buy them out and then sold a majority stake to M&M. He does regret the GM has snapped ties with Reva on the electric Spark venture, but he thinks it's necessary to partner with a 'big brother' at this juncture if he has to see the Reva being sold on the Indian roads.

Just imagine: With a solar panel on top and a Li-Ion battery, the car would keep going and going without even needing frequent charging. The battery could last four to five years very easily. The only running expenses you would incur would be on tyres. No engine oil, no brake oil, transmission oil or battery checkups. A cosy and quiet drive. Wouldn't it be wonderful if the price dropped or if easy finance were made available for the Reva?
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Old 28th May 2010, 18:45   #30
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I can say that I am glad to see an Indian company take interest in Reva. Clearly the company has been ahead of its times on the technology curve, and had Chetan Maini gone looking I am sure the GMs and Fords would have been interested in acquiring a controlling stake. Moving with Mahindras gives Maini a broader canvas to play on, and at the same time he reduces the risk of being sidelined in the company he incubated and grew in an environment that was clearly hostile for electric cars.

I can also understand Anand Mahindra's logic in stating that neighborhood transport vehicles like the Maxximo should be the first to benefit from reva technology. But can someone please tell him that the vehicle looks plain ugly?...Can't wait for a hybrid 4*4 Bolero
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