Mahindra Enters High Growth Electric Car Segment; Acquires Majority Stake in REVA
BANGALORE, India, May 26, 2010 /PRNewswire/ --
- 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
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.
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
makes the Mahindra group a strong global player in the electric vehicle space.
(Photo: http://www.newscom.com/cgi-bin/prnh/20100526/393103 )
Post the buyout, the Board of Mahindra REVA has been re-constituted under
the chairmanship of Dr
Sectors, Mahindra & Mahindra. The new board includes five nominees from
Mahindra & Mahindra, two from the Maini family, and one from AEV LLC,
the board subsequently. Mr
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
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
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
Dr
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.”
Mr
Mahindra REVA mentioned, “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. In Mahindra we have found
a company that not only shares our vision of principled and sustainable
growth but one that also has a reputation for good corporate governance. 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”.
About REVA
REVA was established in
Maini Group of
electric vehicle was first commercially available in
the largest deployed fleet of electric cars in the global market today,
available in 24 countries across
with more than 3,500 of its vehicles on the road and the accumulated data
from more than 100 million km of user experience.
REVA launched two new electric cars at the 63rd Frankfurt Motor Show in
charge system, REVA’s unique proprietary technology. In
Chevrolet e-Spark premiered at the Delhi Auto Show, with GM India’s platform
powered by REVA.
In recognition of its technology leadership REVA was awarded Frost &
Sullivan’s European Powertrain Company of the Year 2008 and prior to that,
was named one of
Overdrive, CNBC and TV 18 recently awarded REVA the Green Car of the Year
2010.
About The Mahindra Group
Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in
1,00,000 people across the globe and enjoys a leadership position in utility
vehicles, tractors and information technology, with a significant and growing
presence in financial services, tourism, infrastructure development, trade
and logistics. The Mahindra Group today is an embodiment of global excellence
and enjoys a strong corporate brand image.
Mahindra is the only Indian company among the top tractor brands in the
world and has made an entry in the two-wheeler segment, which will see the
company emerge as a full-range player with a presence in almost every segment
of the automobile industry.
The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired
the leading global business and information technology services company,
Satyam Computer Services. The company is now known as
Mahindra’s Farm Equipment Sector is the proud recipient of the Japan
Quality Medal, the only tractor company worldwide to be bestowed this honour.
It also holds the distinction of being the only tractor company worldwide to
win the Deming Prize. The US based Reputation Institute ranked Mahindra among
the top 10 Indian companies in its Global 200: The World’s Best Corporate
Reputations list.
Mahindra is also one of the few Indian companies to receive an A+ GRI
checked rating for its first Sustainability Report for the year 2007-08 and
has also received the A+ GRI rating for the year 2008- 09.
SOURCE REVA