- Mahindra considers acquisition of small EV specialist, Reva Electric Car Co.
- Reva is currently preparing for production of its next model.
- The move would boost Mahindra's capabilities in developing alternate propulsion technologies.
MUMBAI, India — Reva Electric Car Company seems to be attracting more than one suitor. After striking an alliance with General Motors to provide technology, Reva is said to be in talks with Mahindra & Mahindra, the big utility-vehicle manufacturer, for an equity partnership.
Sources told Autocar India that two of the stakeholders in Reva Electric Car Company — U.S.-based Global Environment Fund and Draper Fisher Jurvetson — may exit by selling their stakes to M&M. When contacted, both M&M and Reva Electric Car Company declined to comment on the "speculation" that M&M might buy a stake in Reva.
Global Environment Fund and Draper Fisher Jurvetson did not respond to inquiries. The companies have invested $10 million each in Bangalore-based Reva. Going by M&M's acquisition strategy yardstick, the Mumbai-based company would pick up at least a 51-percent stake, if the deal takes place.
The move would boost M&M's capabilities in developing alternate propulsion technologies. Reva Electric Car Company is currently busy preparing for its next model, trial production of which will start by the end of this year.
Inside Line says: Reva is also working with GM in India on battery-powered versions of the Chevrolet Spark and Beat. — Hormazd Sorabjee, Editor, Autocar India
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delraylocal says:
12:39 PM, 04/16/2010
lotusshell- I for one want options in my life. I do not want to live in some socialist world where I am told what I can and can't drive.
By the way I am not voting for Obama again!
lotusshell says:
11:38 AM, 04/16/2010
If we create electric cars with alternative engines, people will not adobt the electric. In order for electric cars to become common place, it almost has to be forced, electric should be the only option.
I also wonder if creating alternative engines indirectly up's the cost on a particular car, as I'm sure engineering time goes up.
k55 says:
10:13 AM, 04/16/2010
this is kind of cool looking . Put a 1.5 in it as well as the electric version.