Mahindra enters in to Electric space with a stake in REVA

Indian leading utility vehicle maker Mahindra is in news again, this time by acquiring 55.2% stake. The new entity would be called Mahindra Reva Electric vehicle Company.

Mahindra, clearly the a great success story in Indian automotive scenario in recent times had been putting all the right foundations towards reaching the global markets. Mahindra is the leading utility and tractor market in India has a partnership with Navistar for M&HCV sector, has recently put maxximo, a sub ton category utility vehicle. Mahindra’s attempt to enter in to passenger car segment was not so successful with its divorce with Renault with a failed model Logan. The pickup version of Scorpio is all set to be launched in US market by the end of 2010.

Having stake in Reva, puts Mahindra in to the league of Indian auto markers

attempt to enter the attractive global electric vehicle market. TATA motors the Indian auto giant has made its preparation by acquiring the Norwegian electric car marker. It is planning to launch the EV Indica in UK and Scandinavia by the end of this year and the EV Nano in US by next year.

Mahindra’s proposition is to use the REVA technology, especially it’s drive-train technology. The Maxximo might soon be coming in EV version as REVA it self not a very successful in selling its cars in spite of its presence since 1994 as Electric ca company. REVA also has been in news since last year after it came with an agreement with GM India to help GM with EV technology for GM India’s plan for spark electric version. By then it was quite evident that REVA started looking for different options to position it self in the market, either as a technology company or ready to be acquired. The present stake sale has put the agreement with GM India in to side ways. However Mr Anand Mahindra has expressed that Mahndra is ready honor the agreement to offer the technology.

Sale of REVA also marks the end of an era for REVA that started its initiative in EV domain in 1994 and was one of the early movers in this area to bring in cars on road. Presently REVA mentions it has presence in 24 countries and around 3000 cars on Road.

It clearly mentions that REVA was never a successful car company (in growth) however the persistence to continue in the field over this period in it self is an achievement and its Name being taken amongst very few EV companies in the world can’t be denied.