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.