Rivian's Saudi backer makes Rs 1,700-crore bet on Greaves Electric

A Saudi family-owned group that reaped billions as an early backer of electric truck-maker Rivian Automotive, has made a new bet on battery-powered vehicles, this time investing in two- and three-wheeler vehicles in India.

Abdul Latif Jameel, a Jeddah-based group named after its founder and now run by his sons, committed to invest up to $220 million (Rs 1,700-crore) in Greaves Electric Mobility, according to a statement. It will initially pay $150 million (Rs 1,160 crore) for a 35.8 per cent stake in the electric vehicle maker, part of Greaves Cotton.

The investment will help Greaves Electric grow its business locally, and potentially expand in regions including Latin America, Asia and Africa. Greaves Cotton shares jumped almost 14 per cent on the news, before paring gains to around 1.2 per cent.

India, the world’s fourth-largest automobile market, is pushing to decarbonise transport and achieve a goal of turning net carbon zero by 2070. BloombergNEF expects 53 per cemt of new automobile sales in India will be electric by 2040, compared with 77 per cemt in China.