reported in April, Mahindra has been rumored to be in negotiations with Indian/American electric vehicle manufacturer, Reva Electric Car Co. Ltd., to take over majority stake in the company. Reports this morning confirm that Mahindra now owns 55.2% of Reva. The new company will be renamed Mahindra Reva Electric Vehicle Co.
Reva, through its US importer Bannon Automotive, has been working for the past several months to establish an electric car manufacturing site in the Syracuse, New York area. Plans for the Central New York manufacturing facility have been steadily moving forward since recently acquiring federal, state, and local grants for the project.
Mahindra plans to initially invest USD $9.5 million into the new Reva venture.
"Our association with Reva will only help us further expand our green footprint both in India and overseas." Anand Mahindra, Vice Chairman, Managing Director, Mahindra Group (@AnandMahindra on Twitter)
Mahindra & Mahindra wants to be seen as a global leader in green automotive technology. Mahindra will be introducing the first Indian made pickup trucks (the Mahindra TR20 and TR40) to the United States in December of this year. The Mahindra pickups will only be available with clean diesel engines and are anticipated to attain 30mpg while prices start at USD $22,000.
The first Mahindra pickups sold in the US will be entirely manufactured in India. However, Mahindra has been actively looking for a suitable US facility to assemble pickups and other vehicles in order to avoid the 25% “chicken tax” imposed on foreign made vehicles imported to the United States.
The Mahindra Reva facility in Central New York could provide Mahindra with some positive insight into the manufacturing prowess, technology community, and skilled workforce that the Syracuse area offers. Maybe Mahindra will even consider building clean technology pickups and SUVs in CNY as well.
Source: AP via Syracuse.com