Saudi Arabia-headquartered Abdul Latif Jameel has committed one of the largest investments into India’s two-to-three-wheeler space.
Abdul Latif Jameel will invest up to $220 million in Greaves Electric Mobility, one of the sub-continent’s leading mobility players.
The Saudi conglomerate will initially invest $150 million for a 35.8 percent fully diluted stake in the company making it the second-largest shareholder in Greaves Electric Mobility.
The deputy president and vice chairman of Abdul Latif Jameel, Hassan 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.”
Greaves Electric Mobility is a subsidiary of one of India’s leading diversified engineering businesses, Greaves Cotton Ltd, and offers affordable, cleaner alternatives with technology stack and after-sales support for personal mobility.
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 percent increase from the previous year.
This venture is anticipated to accelerate Greaves Electric Mobility’s transition into the next phase of growth. It is also expected to enhance the firm’s competitiveness in terms of product and market reach.
The managing director and group CEO, Greaves Cotton Limited, Nagesh Basavanhalli, 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.”
Greaves Electric Mobility will use the funds from the investment in new products, associated technologies, brand building and enhance manufacturing capacity.
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.
India is currently the world’s fourth-largest automotive market, and is looking to significantly increase its share of EVs in the two-wheeler and three-wheeler segments. These segments are less dependent on commercial charging infrastructure, unlike passenger cars.
Abdul Latif Jameel and Greaves Electric Mobility will not only support India’s economic growth but will also help fulfill the country’s decarbonisation objective of reducing carbon emissions by one billion tonnes by 2030.
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.
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.
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