MUMBAI (Bloomberg) -- India's Mahindra & Mahindra has agreed to buy a controlling stake in Reva Electric Car Co., to gain technology amid rising demand for alternative-energy vehicles.
Mahindra, India's largest utility vehicles and tractor maker, will acquire a 55 percent stake comprising stock bought from closely held Reva's founders and about $10 million of new shares, it said in a Bombay Stock Exchange statement Wednesday. It didn't give an overall value for the transaction.
The deal will give Mahindra access to technology that has enticed General Motors Co. to work with Bangalore-based Reva on developing an electric hatchback.
Mahindra last month took over Renault SA's stake in a joint venture that makes the Logan sedan, as it seeks to build a passenger car business to tap growing demand in India.
Reva sells electric cars in 24 countries and has sold more than 3,500 vehicles worldwide, according to the statement. The company is building a plant in the southern Indian state of Karnataka to make as many as 30,000 vehicles a year.
“The EV market is poised to grow significantly, and we concluded that in order to seize the opportunity, we needed the resources and experience of a major automotive manufacturer,” Chetan Maini, chief of technology and strategy at Reva, said in the statement.
GM, which is developing a battery-powered version of its Spark small car with Reva's technology, is looking at “other options,” Maini said. He declined to comment on whether the companies have ended their partnership after Mahindra took control of Reva.
Reva was established in 1994 as a venture between the Maini Group and California-based AEV LLC.
Reva unveiled its three-door, four-seat NXR lithium-ion powered electric car at the 2009 Frankfurt auto show.
Reva plans to begin selling the NXR as early as October, Maini said in January. The car will cost about 14,995 euros ($18,482) in Europe, the automaker said last year. The three-door, four-seat hatchback has a top speed of 104 kilometers (65 miles) per hour and a range of 160 kilometers (100 miles) per charge.