BANGALORE: Auto major Mahindra and Mahindra Limited on Wednesday acquired 55.2 per cent stake in REVA Electric Car Company, a move that would strengthen its position in the Electric Vehicles domain.

With acquisition by M&M through a combination of equity purchase from the promoters and fresh equity infusion of over Rs 45 crore (approximately $10 million), the new entity will be renamed as Mahindra Reva Electric Vehicle Company Ltd. Under the agreement signed between the two companies today and post the buyout, Mahindra REVA will have five nominees from M & M, two from Reva’s founder, the Maini family and one of California based AEV LLC, REVA’s co-founder.