Saudi auto distributor Abdul Latif Jameel Co. has made a strategic investment of $150 million in India's Greaves Electric Mobility, the electric vehicle arm of the engineering firm Greaves Cotton.
The initial investment of $150 million is for a 35.8 percent stake on a fully diluted basis in GEM, which retains the option to draw down an additional investment of $70 million within 12 months.
Abdul Latif Jameel is a family-owned, diversified global investor and operator and owns the Toyota dealership in Saudi Arabia. The Jameel Family, that owns Abdul Latif Jameel, is also early-stage investor and the third-largest shareholder of US electric vehicle manufacturer Rivian.
The family are also investors in other cutting-edge innovators such as US venture-backed aerospace company Joby Aviation through their global investment arm JIMCO.
GEM will use the fresh capital to develop new products, associated technologies, brand awareness, that aims to transform it into a leading global EV manufacturer, Greaves said in a statement
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 in line with the country's commitment to reach net zero by 2070.
(Reporting by Brinda Darasha; editing by Seban Scaria)