New Delhi: Saudi Arabia-based family-owned global investor Abdul Latif Jameel has committed to invest up to $220 million. 1,700 crore) in two- and three-wheeler mobility company Greaves Electric Mobility.
As part of the deal, Abdul Latif Jameel will initially invest $150 million for a 35.8% stake in Greaves Electric Mobility, the companies said in a joint statement.
Greaves Electric Mobility, a subsidiary of diversified engineering businesses Greaves Cotton Ltd., will use the new capital to invest in new products, associated technologies and marketing. It will also use the funds to boost its manufacturing capacity.
Greaves Electric Mobility currently manufactures electric two-wheelers under the Ampere Vehicles brand. It also manufactures three wheelers – e-autos and e-rickshaws under the Elli and Teja brands respectively.
Nagesh Basavanahalli, Managing Director and Group CEO, Greaves Cotton, said, “This investment by Abdul Latheef Jameel is an important step towards clean, sustainable and affordable mobility solutions that are accessible to a truly broad customer base.
Hassan Jameel, Vice President and Vice President of Abdul Latif Jameel, said the investment is in line with the global investor’s strategic priority to invest in the mobility of the future.
“Together, we are embarking on a long-term journey to deliver cleaner, more sustainable – and importantly affordable – transportation options for India’s population and beyond,” he said.
The investment in Greaves Electric Mobility builds on the global experience of Abdul Latif Jameel, one of the leading independent distributors of Toyota products for more than 65 years in the automotive market, the statement said.
Notably, the Jameel family, which owns Abdul Latif Jameel, has made an early-stage investment in US-based electric vehicle (EV) maker Rivian. The family has also invested in US venture-backed aerospace company Joby Aviation through global investment arm JIMCO.
Consulting firm RBSA Advisors has said in its report that India’s EV market is expected to reach $150 billion by 2030 at a compound annual growth rate of 90%.
According to Federation of Automobile Dealership Associations of India (FADA), a total of 429,217 EVs were sold in FY12, which is more than three times as many as 134,821 units in FY2011.
New-age automakers such as Ola and existing ones such as Tata Motors Ltd. have both rolled out ambitious EV plans and attracted millions of dollars from VC and private equity firms. Early-stage venture capital firms such as Bloom Ventures, Endea Partners and Stellaris Venture Partners have also bet on the space.