Saudi Arabia-based family business and diversified global investor and operator Abdul Latif Jameel has committed to invest up to $220 million (Rs 1700 crore) in Greaves Electric Mobility, Greaves Cotton’s electric vehicle unit.

As part of the deal, Jameel will initially pay $150 million (1160 crore) for a 35.8% stake in the company, making it the company’s second-largest shareholder, a statement said.

The new funding will be used for new products, related technologies, brand building and increasing manufacturing capacity. India is now the world’s fourth-largest auto market, and it expects electric vehicles to increase significantly in the two- and three-wheeler segments, the company said.

The company, which offers electric two- and three-wheelers in the market, sold 62,000 vehicles in the 2021-22 financial year, a year-on-year increase of 128%.

Currently, Greaves Electric Mobility produces electric two-wheelers under the Ampere Vehicles brand and three-wheelers (e-auto and e-rickshaw) under the mobility brands Ele and Teja.

The joint venture is expected to accelerate Greaves Electric’s transition to the next growth phase. In addition, it will help improve the company’s competitiveness in terms of product and market scope, the statement said.

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Through this strategic investment, both parties will work together to transform Greaves Electric into a significant supplier of electric two- and three-wheelers in India, with the potential to expand its product portfolio to other markets in the global south.