The indigenous electric car manufacturer, Mahindra Reva has decided to sell its upcoming electric hatchback, the Reva NXR at a 20% premium price tag compared to its gasoline hatchback rivals. This decision comes from the company when the Government has decided to offer subsidy on electric vehicles sold in the Indian market. The Government is expected to extend the subsidy on electric vehicles to about Rs. 1 lakh to promote their sales by making them effectively cheaper and within the affordability of the common man. The Ministry of Heavy Industries has estimated that currently there are about 6 to 7 million electric vehicles that ply on the Indian roads. This includes not only cars but buses and scooters too with the majority of them being the later.
Mr. Pawan Goenka, President – automotive, Mahindra & Mahindra commented on this occasion that for the success of electric cars, affordability is the key. The company has learnt that the customer may not be able to pay more than 15-20% premium on electric cars and their current endeavor is to offer our products within that range. The extension of subsidy through new electric vehicle policy will be the key. He also added that once the mission plan is implemented, everyone will get into the electric vehicle space, which will help in development of charging infrastructure as well. Depending on the response that the company receives from the customers with the Reva NXR, the company might introduce 3 or 4 more products.
The charging infrastructure is the main key to the success of the electric vehicles in our country, which is constantly plagued with frequent power shortage and grid failures. Mahindra Reva has 100 charging stations across Delhi and Bangalore as for now, and is targeting to add another 300-500 charging stations in the next few years. Also, the company is planning to lease the car battery at lower costs to its customers. Mahindra Reva has plans to sells close to 30,000 units in the next three years, including 15,000 units for exports. Although the 15 to 20% premium might seem high when compared to it’s petrol alternatives, but it is the running cost where the Reva NXR will leave its rivals far behind. Typically, an electric car like Reva NXR will cost less than one Rupee per Km of running cost compared to the petrol car’s typical running cost close to Rs. 5 per litre. We will keep you posted on the latest updates on the Reva NXR launch, stay tuned.