May 26, 2010, 08.24 PM | Source: Moneycontrol.com
Mahindra and Mahindra (M&M) has bought a majority stake in electric car company, Reva. With this, the commercial vehicle major would hold 55.2% in Reva via the stake sale and fresh equity infusion.
M&M would invest USD 10 million in the electric car major and would rename the company as Mahindra Reva Electric.
Pawan Goenka, president of M&Mís automotive and farm equipment sector would be the Chairman of the renamed company.
According to industry experts, the enterprise value of Reva is approximately Rs 500 crore.
Reva is sold in 24 countries and has over 3,000 units on road already. The company produces approximately 30,000 units per annum at its plant in Bangalore. It has the largest deployed fleet of electric cars in the market. It is currently working on the Reva NXR.
GM calls off tie-up:
In a related development, sources told CNBC-TV18 that General Motors has called off its collaboration with Reva. It has also shelves the launch of the electric Spark. GM will now focus on in-house technology for electric cars in
Reva had entered into a collaboration agreement with General Motors last year. GM India was also developing the electric Spark with Reva, which was to be rolled out by year-end.