Abdul Latif Jameel, an independent, family-owned, diversified global investor and operator has announced its commitment to invest $220 million (Rs 1,700 crore) in in Greaves Electric Mobility, one of India’s leading two-to-three-wheeler mobility players.
This is said to be one of the largest investments in the Indian two-to-three-wheeler space to date. As part of the understanding, Abdul Latif Jameel will initially invest $150 million [Rs 1,160 crores] for a 35.8 percent fully diluted stake in the company making it the second-largest shareholder in Greaves Electric Mobility, a subsidiary of diversified engineering businesses, Greaves Cotton.
This will help accelerate Greaves Electric Mobility’s transition into the next phase of growth. In addition, it will also help in enhancing the competitiveness of the company in terms of product and market reach. Greaves Electric Mobility says it will deploy the funds towards new product development, associated technologies, brand building and enhance manufacturing capacity.
India is currently the world’s fourth-largest automotive market where the share of EVs in the two-wheeler and three-wheeler segments are expected to increase significantly. Unlike passenger cars, these segments are less dependent on commercial charging infrastructure.
Through this strategic investment, the partners plan to align in transforming Greaves Electric Mobility into a significant electric two-to-three-wheeler mobility player in India, with the potential to expand its portfolio to other markets in the Global South.
Hassan Jameel, deputy president and vice-chairman, Abdul Latif Jameel said: “At Abdul Latif Jameel, we are proud to be investing in Greaves Electric Mobility at such a critical time for India’s EV market. Together, we are embarking on a long-term journey to deliver cleaner, more sustainable – and crucially affordable – transport options to India’s population, and beyond. This agreement aligns with our strategic priority of investing in mobility of the future, in addition to showcasing our joint commitment to making Greaves Electric Mobility competitive and its EV products available to communities in India and potentially other markets in the Global South.”
The venture builds on Abdul Latif Jameel’s extensive global experience in the automotive market as one of the leading independent distributors of Toyota products for over 65 years. The Jameel Family, who own Abdul Latif Jameel, are also early-stage investors and the third-largest shareholder of US electric vehicle manufacturer Rivian.
Nagesh Basavanhalli, MD and Group CEO, Greaves Cotton said: “This investment from Abdul Latif Jameel is an important step towards clean, sustainable and affordable mobility solutions truly accessible to much wider customer base. Through sheer hard work, innovation and by seizing opportunities presented by changing personal mobility preferences, we have emerged as one of India’s fast growing EV brands. With this investment, we will continue to deliver tangible value to our customers and shareholders alike”
In FY2022, Greaves Electric Mobility sold over 62,000 e-vehicles, which was 128 percent higher YoY.
At present, Greaves Electric Mobility manufactures electric two-wheelers under Ampere Vehicles brand and three-wheeler vehicles (E-Auto and E-Rickshaw) under the mobility brands Ele and Teja, respectively.