Mahindra and Mahindra have made their foray into world of manufacturing electric cars. The company has agreed to acquire 55 percent stake in India’s first electric car company Reva Electric. "Mahindra wants to consolidate its position as a company which wants to manufacture everything on wheels," said Arun Kejriwal, director of KRIS Research. "This acquisition would go a long way in helping achieve this."
Reva had declared earlier this year that it was open to undertaking contract apart from the one inked with General Motors. GM India and Reva Electric had announced last year that they will joint produce electric variant of Chevrolet Spark in the Indian market. GM India reacted to the recent announcement stating that it may not be able to continue with the agreement any more about producing electric Spark with Reva. "We may not continue the Spark EV (electric vehicle) programme with Reva in the light of this development and will pursue our own electric vehicle programme. An announcement to this effect will be issued soon," Vice President of General Motors India P. Balendran answered the email query.
Mahindra and Mahindra will buy shares from the owners as well invest around Rs. 4.5 crores toward business expansion of its electric car venture.
