The acquisition aims at accelerating development of clean energy solutions for mobility
Greaves Cotton, an Indian engineering company that manufactures engines and heavy equipment, has announced that it will acquire a majority stake in the EV company Ampere Vehicles. Greaves also deals in powertrain solutions and spare parts, and currently provides transportation solutions to around 10 million people on a daily basis. The acquisition will promote the development of clean energy solutions for mobility needs for small-scale businesses. Also, through its distribution network, Greaves will also help strengthen Amperes’ aftermarket and service in the country.
With a significant paradigm shift in electric revolution, more and more manufacturers and companies are looking in to invest in electric mobility. For instance, Hero MotoCorp and Mahindra already have a strong base in the electric market while TVS, which has been developing its own hybrid scooter, the Creon, has invested in Ultraviolette Automotive, also an electric two-wheeler company. Similarly, the venture between Greaves and Ampere could translate into a positive growth for the electric company. Furthermore, the capital invested in the company could be funnelled into product engineering and further expansion of its R&D team and facility.
At present, Ampere, which designs and manufactures electric two-wheelers, has two models in its stable, the V48 and Reo. Both scooters have been indigenously developed with a price tag of Rs 38,000 and Rs 46,000 respectively.
Here’s the official statement from the manufacturer.
Press Release -
Greaves Cotton to acquire majority stake in electric vehicle company Ampere
Strengthens its strategic commitment to the last mile mobility segment with innovative, state-of-the-art solutions
29th Aug, 2018: Greaves Cotton, one of India’s leading diversified engineering companies, today announced that they have entered into definitive agreements pursuant to which Greaves Cotton will acquire a majority stake in EV company Ampere Vehicles Pvt. Ltd, subject to customary closing conditions. This acquisition will accelerate the development of clean energy technology solutions for mobility needs of passengers and small businesses.
Ampere is one of the leading brands in the last mile mobility electric vehicles segment. It has strong in-house capabilities in designing, developing, manufacturing & marketing electric vehicles with a wide range of applications. Greaves currently provides transportation to almost 10 million people daily through its powertrain solutions. In addition, Greaves reaches 5 million customers (of aftermarket spare parts) per month through its network of 5000+ retail outlets. The newly launched Greaves Care network services nearly 7000+ vehicles per month, with plans to substantially ramp-up in the coming years. Greaves will be able to leverage its distribution, aftermarket and service strengths to help Ampere grow more rapidly.
Greaves aims to create enhanced value for its shareholders by investing in advanced clean energy technologies through partnerships in India and worldwide. This acquisition in the electric mobility segment underscores the strategic intent of Greaves.
Mr. Nagesh Basavanhalli, MD & CEO, Greaves Cotton Limited, said, “Greaves has been a trusted brand since 1859, and is well known for the reliability of its products, a strong value proposition based on low total cost of ownership and widespread pan India reach. With this strategic acquisition, we will be able to address a wider range of customer segments with clean energy mobility solutions. Greaves and Ampere will be a synergistic combination of our excellence in frugal engineering & manufacturing with a new age electric mobility solutions company.”
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