Abdul Latif Jameel commits total investment of $220 million
Abdul Latif Jameel, an independent, family-owned, diversified global investor and operator has announced its commitment to invest in Greaves Electric Mobility, one of India’s leading two-to-three-wheeler mobility players. Abdul Latif Jameel has committed to invest up to $220 million [INR 1700 crores] in Greaves Electric Mobility, marking one of the largest investments in the Indian two-to-three-wheeler space to date. Abdul Latif Jameel will initially invest $150 million [INR 1160 crores] for a 35.8% fully diluted stake in the company making it the second-largest shareholder in Greaves Electric Mobility.
Greaves Electric Mobility is a subsidiary of one of India’s leading diversified engineering businesses, Greaves Cotton Ltd., and offers affordable, cleaner alternatives with credible technology stack and after sales support for personal mobility that are accessible to communities in India. Furthermore, the company has emerged as one of the fast-growing EV brands in the country, with retail sales of Greaves Electric Mobility standing at over 62,000 vehicles for the financial year 2022, which is a 128% increase from the previous year.
This venture is anticipated to 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.
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. These segments are less dependent on commercial charging infrastructure, unlike passenger cars.
Abdul Latif Jameel recognized the largely untapped potential of two-and-three-wheeler EVs in India; a nation that is driving initiatives to tackle pollution and combat climate change. By driving cleaner mobility options, Abdul Latif Jameel and Greaves Electric Mobility will not only support India’s economic growth but will also help fulfill the country’s decarbonization objective of reducing carbon emissions by one billion tons by 2030. This is in line with the shared vision of striving for Green Mobility Inclusion to provide clean, affordable, and safe mobility solutions.
Abdul Latif Jameel’s investment in Greaves Electric Mobility continues its ongoing strategy to invest in businesses that are driving the future of global sustainable mobility. Through this strategic investment, both parties will be aligned 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 of Abdul Latif Jameel, commented: “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. 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. With the solid foundation of Greaves Cotton’s 162-year heritage, Greaves Electric Mobility’s mission is to help accelerate India’s transition to electrified mobility.
Nagesh Basavanhalli, Managing Director and Group CEO, Greaves Cotton Ltd., 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”.
This deal marks a major milestone in the development of the electric two- and three-wheeler ecosystem in India. Greaves Electric Mobility will use the funds from the investment in new products, associated technologies, brand building and enhance manufacturing capacity that will not only strengthen the company’s market position but will also make it a highly admired EV company in the country.
Currently, Greaves Electric Mobility manufactures electric two-wheelers under the brand name of Ampere Vehicles and three-wheeler vehicles (E-Auto and E-Rickshaw) under the mobility brands Ele and Teja, respectively.