[n.devdath]

If this happens, M&M will certainly have the latest electric technology in the Indian context. But what is surprising is the fact that RECC in itself had laid out detailed plans for its future products and developments including tie ups with niche Italian firms for export and manufacturing facilities.

Is this a case of "Paisa bolta hai"??

Note from Mod : Done! From the official press release:

Mahindra enters high growth electric car segment;
acquires majority stake in REVA

• Mahindra to have 55.2% equity in REVA Electric Car Company (REVA).
• Company to be renamed Mahindra REVA Electric Vehicle Company (Mahindra REVA)
• Mahindra REVA to leverage Mahindra’s vehicle development expertise
• Mahindra REVA electric technology to be deployed in Mahindra vehicles
• Dr Pawan Goenka elected Chairman of the newly constituted board

Bangalore May 26, 2010: Mahindra & Mahindra Ltd. today strengthened its position in the Electric Vehicles domain with the acquisition of a majority stake in REVA Electric Car Co Ltd. Bangalore. REVA Electric Car Co Ltd. will be renamed Mahindra REVA Electric Vehicle Co Ltd. Under the new agreement which was signed today by both the companies, M&M will own 55.2% equity in Mahindra REVA by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs 45 crores (approx US $10 million) into the company. The buyout makes the Mahindra group a strong global player in the electric vehicle space.

Post the buyout, the Board of Mahindra REVA has been re-constituted under the chairmanship of Dr Pawan Goenka, President Automotive & Farm Equipment Sectors, Mahindra & Mahindra. The new board includes five nominees from Mahindra & Mahindra, two from the Maini family, and one from AEV LLC, California (co-founders of REVA). An independent director will be added to the board subsequently. Mr Chetan Maini will continue to play a leading role in Mahindra REVA as Chief of Technology & Strategy and will continue to be on the board.

Under its core Sustainable Mobility initiative, Mahindra has been working for the last 10 years on developing green technologies and has demonstrated diesel hybrid technology on the Scorpio and hydrogen Alfa three wheelers. Mahindra has a pilot fleet operating with 100% bio-diesel and was the first to launch micro-hybrid technology in India with around 50,000 such micro-hybrids on the road today. In EVs, over and above the electric three-wheeler Bijlee developed in 1999, it is also currently working on an electric version of its mini-truck, Maxximo. Mahindra REVA’s EV technology will be adapted for these and other M&M vehicles. Access to strong EV technology will strengthen Mahindra’s other current sustainability initiatives.

REVA is currently marketing its products in 24 countries across the world with an overall vehicle population of over 3500, arguably the largest EV fleet globally. REVA recently premiered its next generation electric car models, the NXR and NXG which received an enthusiastic response. Mahindra REVA will now have access to Mahindra’s vehicle development technology and distribution network, significantly enhancing its ability to launch a state-of-the-art electric vehicle for global markets.

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 solutions 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.”

[HappyWheels]

It was in the news yesterday. M&M are increasing their portfolio to take on the international market. A very good move.

I hope that with M&M and their mass production, the pricing might come down for the REVA. Else they might have one more THAR on their hands (if the THAR's pricing is as high as it is being speculated).

[zazer]

It looks like M&M has charted out some serious expansion plans. If I am not wrong M&M was already working on development of electric vehicles. This deal if successfully completed, will push M&M into entirely new level of technology. Plus I believe M&M has the required funds to market the new Reva models and to mass produce them thereby bringing it a nit bit closer to the Indian consumers value for money bar.

[MileCruncher]

M&M is slowly becoming a end to end player in Automotive Sector, what with Tractors, CV, SUV, 2 wheelers and cars.

[nikhil_d1106]

Its out now - M&M will take 55.2% stake in Reva (now Mahindra Reva) !!

[Krishna_Pondy]

Flash News on Economic Times:
Mahindra & Mahindra buys 55.2% stake in Reva, company to be named Maha Reva Electric

[mshooli]

Originally Posted by Krishna_Pondy

Flash News on Economic Times:Mahindra & Mahindra buys 55.2% stake in Reva, company to be named Maha Reva Electric

Yes. More details at :

Mahindra to buy 55.2% stake in Reva-Automobiles-Auto-News By Industry-News-The Economic Times?

[mjothi]

Wow, so now what? eSparky to MahaSparky?

[Finject]

Reva had a great idea, and a great product, but it didn't get the attention and sales it deserved, as the brand wasn't something the average Indian trusted easily. Also, they weren't that widely available.
Now with Mahindra, one of the most trusted brands in the country backing it, the Reva might just be the exposure(advertising budget) and reach (Mahindra dealerships) the product deserves.

Great for both companies though. Mahindra's diversifying spree continues, from jeeps to the Bolero to Scorpio to Logan to Xylo to Power Scooters to electric vehicles!
I hope they come out with bicycles next

[manjith_pm]

It's good to see M&M making such moves.I think they must be buying 55.2% of reva for quite a few reasons.
They could mutually share technology and also the distribution and sales of reva could be better,welcome move in the indian automotive industry.
And who knows they might take the reva to the US.

[harishnair]

This move will help both Reva and M&M in the long run. M&M will get access to Reva's electric technology and Reva will get to use Mahindra's huge pan-India sales network.

[SirAlec]

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.

[veyron_head]

This buyout comes at an opportune time when the whole world is talking about going green. This sure is a great move by Mahindra. Mahindra should use Reva's technology to come up with Hybrid variants for its own cars. Hybrid Bolero, anyone?

[GTO]

Official press release added to the opening post.

Superb move by Mahindra! Allows them to diversify their portfolio, get electronic tech for future vehicles (E-Logan, E-MUV anyone), while Maini will greatly benefit from the huge dealer network.

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.

[CARDEEP]

GM has broken ties with Reva, which would have helped both.

But, good that Indian manufacturers will now work on development of electric engines, that will definitely add to the knowledge pool of Indians car companies (in case if electric cars) & help further Indian talent (nurtured by IITs & RECs).