Mahindra Reva Scales Back Electric Vehicle Efforts in India Due to Lack of Previously Promised Government Support
4 Y BY ERIC LOVEDAY
Mahindra & Mahindra (M&M, parent company of electric vehicle maker Mahindra Reva, is scaling back its overall electric vehicle operations in direct response to India’s government not moving forward with the EV subsidy plan it had promised to put into place.
The government is dragging its heels, says Mahindra Reva, who launched its first EV, the e20, in March of this year.
Without subsidies, the e20 isn’t price competitively. Mahindra Reva was promised by the government that subsidies would be in place soon (April) after the e20 launch, so the automaker went forth and put the e20 out there.
Sales have been extremely low (400 units including those sold in nearby Nepal and Sri Lanka) though due to its high, non-subsidy price tag. At Rs 5.96 lakh (or roughly $10,000 US), the e20 is some $3,000 more expensive than its diesel and gas counterparts. That may sound insignificant, but with a 30% premium on its price tag, the e20 just isn’t selling.
Mahindra Reva had planned to build a whole lineup of electric vehicles, provided that the government came through with its promised 100,000 to 125,000 rupees ($1,849 to $2,319) subsidy program, but since the government dropped the ball, Mahindra Reva says those plans are now dead.
Pawan Goenka, executive director and president at M&M, stated:
“We are planning to bring the electric version of Maxximo, Gio and Verito but without government support, we would not go beyond e2o.”
Mahindra Reva says it’s still a possibility that those vehicles will be produced, but it notes that sales will now being targeted at European countries like the UK, Norway and Denmark. India will be left out.
Source: Business Standard