Mahindra eyes global electric car entry with Reva buy

India’s leading utility vehicle maker, Mahindra & Mahindra, agreed to buy a 55% stake in pioneering electric car maker Reva Electric Car Co., aiming to be a significant player in the global electric vehicle industry. The deal gives Mahindra a foothold in the small, but increasingly crowded electric vehicle industry, which is attracting global players such as Toyota Motor Corp. and General Motors Corp., as they search for cleaner alternatives to gasoline. Mahindra is taking the majority stake in Reva by buying a part of the founder’s stake, and investing an additional Rs450 million (US$ 9.59 million) in fresh equity. It did not disclose details of how much it was paying for the entire holding. (May 26, 2010)