India’s largest automobile maker, carvana, has said it plans to buy a second-generation electric vehicle in 2018.
The company’s shares rose more than 7% to close at $8.72 on Friday.
The company said it is investing more than $1 billion to develop the second-gen vehicle, which will be able to offer “a truly sustainable and eco-friendly mobility solution” for its 1.3 million employees.
“The carvana platform offers a unique set of benefits, including: low-carbon, energy-efficient vehicles; low-emissions powertrains; intelligent navigation and adaptive cruise control; and eco and environmental sustainability,” the company said in a statement.
“Carvana’s carvana2 electric vehicle will be an opportunity to build a global-scale, sustainable transportation system that provides an affordable and reliable alternative to conventional and hybrid cars, and that will make it a global leader in the global EV market.”
The carmakers decision comes just days after Toyota’s Toyota Prime minivan was recalled after being linked to two deaths in India.
The recall prompted a nationwide push to introduce electric vehicles in India, with Tesla’s Model S and BMW’s X3 being two of the vehicles that received the recall.
The automaker said it would invest about $3.5 billion to help it develop the electric vehicle.