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New Delhi: Saudi Arabia-based family-owned global investor Abdul Latif Jameel has committed to invest up to $220 million ( 1,700 crore) in two- and three-wheeler mobility company Greaves Electric Mobility.

As part of the deal, Abdul Latif Jameel will initially invest $150 million for a 35.8% stake in Greaves Electric Mobility, said the companies in a joint statement.

Greaves Electric Mobility, a subsidiary of the diversified engineering businesses Greaves Cotton Ltd, will use the fresh capital for investment in new products, associated technologies and marketing, it said. It will also use the funds to boost its manufacturing capacity, it added.

Greaves Electric Mobility currently manufactures electric two-wheelers under the brand Ampere Vehicles. It also makes three-wheeler vehicles -- e-auto and e-rickshaw under the brands Ele and Teja, respectively.

“This investment from Abdul Latif Jameel is an important step towards clean, sustainable and affordable mobility solutions truly accessible to much wider customer base," said Nagesh Basavanhalli, managing director and Group CEO, Greaves Cotton.

Hassan Jameel, deputy president and vice chairman of Abdul Latif Jameel, said that the investment is in line with the global investor’s strategic priority of investing in the mobility of the future.

“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," he added.

The investment in Greaves Electric Mobility also builds on Abdul Latif Jameel’s global experience in the automotive market as one of the major independent distributors of Toyota products for over 65 years, the statement noted.

Notably, The Jameel Family, which owns Abdul Latif Jameel, has made early-stage investment in US-based electric vehicle (EV) manufacturer Rivian. The Family, via global investment arm JIMCO, has also invested in US venture-backed aerospace company Joby Aviation.

India’s EV market is expected to record a compound annual growth rate of 90% to touch $150 billion by 2030, consulting firm RBSA Advisors said in report.

A total of 429,217 EVs were sold in FY22, a more than threefold rise from 134,821 units in FY21, according to the Federation of Automobile Dealership Associations of India (Fada).

Both new age automakers like Ola and incumbents like Tata Motors Ltd have prepared ambitious EV plans and attracted millions of dollars from VC and private equity firms. Early-stage venture capital firms like Blume Ventures, Endiya Partner and Stellaris Venture Partners have also made bets on the space.

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