M&M and Proton plan for a Joint Venture

Talks between Indian automotive giant Mahindra & Mahindra and Malaysian auto biggie Proton have started again, concerning the entry of the latter in the Indian Market. The two companies were in talks before this, in the year 2007. However the meeting bore no fruit and was unavailing. While the news about the two having a joint venture soon, has spread like wildfire, the spokesperson from M&M refused to comment on the same. However sources confirm that there is a good chance of a joint venture between the two companies.



When looked at Proton's annual report, it clearly mentions the company's plans of trying its hands in the Chinese and the Indian auto market.It also revealed its plans on taking a step towards and focusing on regional markets with high growth in ASEAN with an aim to set up a Completely Built-Up (CBU) market and India, China and Iran to have a Completely Knock Down (CKD) market. Proton also looks at the Indian economy as a strong one since it was more adaptable and responsive to the world wide economic recession.

Mahindra on the other hand is expanding fast by exploring new markets. The company ended its JV with Renault to re-launch Logan with its own name. M&M has also taken over 50 percent stake in Reva Electric to manufacture electric cars to be launched in future. Another achievement that the company can boast of is the inception of the revamped Scorpio model in the US market, making it the first auto company to have its model on the American soil.

Source:- M&M and Proton plan for a Joint Venture - New Cars

Reva i to get new name and logo soon

Reva i, the single best-selling electric car in India, may get a new look and brand new logo from its new owner Mahindra & Mahindra soon. However, the car will continue to be selling with its previous name till both M&M and Reva decide upon the new name and logo. The Reva i is among thew best selling electric cars in the world automobile market, with about 3,500 units sold globally in the last one decade.



Company is very passionate about the brand. It will be having discussion in detail about how to change the brand image of the car. It’s hard to comment right now. The Mahindra name will give the brand more security. It’s a good combination from a consumer perspective. New business technology will come with the large business house coming in to the picture. It will leverage their brand strength to drive future growth for the car, as per a statement given by Mr Maini to a leading media group.



The company will continue to pump in more money as and when required to build the brand image of the car so as to increase the sales. It is targeting 50,000 unit sales by 2020 in India, said, Pawan Goenka, chairman, Mahindra Reva Electric Car Co Ltd and President (automotive & farm equipment sectors), M&M.

Some market analyst also think that continuing with the existing name Reva will be more beneficial for the company as the Reva has established itself as a leading electric car brand in the world automobile market. Its been about 10 years since the car is in the market and the Reva word has become synonym for the electric cars in India.

Source:- Reva i to get new name and logo soon - New Cars

Reva enters in a new era with Mahindra merger

Reva Electric, a well know electric car maker in India which has recently been acquired by the Mahindra Group, was started selling its vehicles in India since year 2001. The company was formed as a joint venture with two foreign companies- Detroit’s General Motors and Silicon Valley VC fund Draper Fisher Jurvetson (DFJ).

The company had recently entered into a tie-up with General Motors to manufacture the electric versions of GM's compact car Chevrolet Spark in India, which was a major success for the company as it was the first time that an Indian comoany would provide electric car technology to one of the largest car makers of US.



At present, the REVA is marketing its cars in 24 countries across the world automobile market, with an overall vehicle population of over 3500, arguably the largest EV fleet globally. REVA recently premiered its next generation electric car models, the NXR and NXG which received an enthusiastic response. Mahindra REVA will now have access to Mahindra's vehicle development technology and distribution network, significantly enhancing its ability to launch a state-of-the-art electric vehicle for global markets.



The decision of giving its control to the Mahindra group was a bit surprising for many market watchers as the company was doing very well at the time of this merger. On the other hand Mahindra group has strengthened its position in the Electric Vehicles domain with the acquisition of a majority stake in REVA Electric. The company will be renamed Mahindra REVA Electric Vehicle Co Ltd. Under the new agreement which was signed by both the companies, M&M will own 55.2% equity in Mahindra REVA by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs 45 crores (approx US $10 million) into the company. The buyout makes the Mahindra group a strong global player in the electric vehicle space.

Source:- Reva enters in a new era with Mahindra merger - New Cars

All sparks out of GM, Reva's deal

latest partnership between Mahindra & Mahindra and Reva Car company as affected the deal General Motors and Reva could have shared. The deal between Reva and General motors started last year and with this latest development seems to be in vain. The Indian wing of General Motors recently announced that it would not be possible for the company to proceed any further on the deal with Reva for the production of Electric cars in India. The deal especially aimed at introducing the electric version of GM's much popular Chevrolet Spark.



The Spark EV (electric vehicle) program, that GM was to undertake along with Reva would now indeed be carried solely by GM India. Vice President of General Motors India P. Balendran indicated that there would an announcement on the same in few days by the company. The deal made last year between the two companies not only included the development of electric cars jointly, but also to develop India as the new manufacturing hub for such cars. The two companies have however kept the financial details to themselves and not much about the deal is out in open. The officials from M&M however commented that the company is not antagonistic about continuing the deal with Reva.

Source:- All sparks out of GM, Reva's deal - New Cars

Mahindra may buy Reva electric very soon, Reports

The speculations about Mahindra & Mahindra's intentions of buying India's only electric car-maker Reva, which are doing rounds in market since last few months, are again in the headlines with reports that Mahindra group is likely to take a step in this regard in a day or two. Mahindra's shares plummeted 2.48 per cent on Tuesday, amid media reports of this possible merger.



According to media reports, the Mahindra Group may announce about this tie-up in 2-3 days after signing the agreement with REVA electric. The possible deal could cost anywhere around Rs 450 crore, though the actual value is yet to be ascertained by both of the company.

Mahindra & Mahindra, is India's largest utility vehicle manufacturer with selling some of the most popular SUV's in India including Mahindra Bolero, Scorpio and Xylo. The company also has a significant presence in commercial vehicle market with selling some popular loading vehicles in this segment including Mahindra Maxx and Bolero.

On the other hand, REVA (Reva Electric Car Company), is a Joint venture company between California-based AEV LLC and Maini Group, which has been funded by Global Environment Fund and Draper Fisher Jurvetson. REVA group has recently entered into a tie-up with US based General Motors for manufacturing of electric version of GM's compact car Chevrolet Spark in India.

Source:- Mahindra may buy Reva electric very soon, Reports - New Cars

Reva to enter in next stage of developement

Reva, a leading Indian electric-car maker, is now eyeing at an international investor apparently, so that it can take its operations to the next stage of R&D and manufacturing. According to some media reports, REVA, which already has investments of around US$ 10 million (from Global Environment Fund (GEF) and Draper Fisher Jurvetson (DFJ) giving it a 47 per cent stake), could be well worth over US$ 100 million now.

Few months back, there were rumors in the market that Mahindra & Mahindra, the largest SUV maker in India, is showing interest in buying a stake in the electric car maker, though there was no confirmation from either of the companies. It is likely that if Reva seeks a global presence in other world markets than an international investor would be more appropriate as a strategic decision.

Moreover, in the end of last year, GM India and Reva had entered into a partnership to develop an economical electric car for the Indian market and since than both companies have been doing feasibility studies that would use GM small car platforms to host co-developed drive-trains and control systems. At present, Reva i is the only recognized electric car in the India, in the company's portfolio.

Source:- Reva to enter in next stage of developement - New Cars