Mahindra Reva, mkakers of India's only mass-produced electric vehicle, has announced that it will offer its e2o EV with a battery rental option in an effort to drive down out-of-pocket costs that the automaker believes is limiting sales of the EV.
Mahindra Reva Electric e2o is Only Mass-Produced 4-Wheel Electric Currently Sold in India
As the Economic Times reports:
"Mahindra Reva Electric Vehicles, a part of the Mahindra Group, on Tuesday slashed the price of its electric car e2o by up to Rs 1.7 lakh by introducing a scheme under which a consumer pays a rental fee for the battery."
Mahindra Reva CEO Chetan Maini commented on the battery rental plan:
"What we are doing with the scheme is bringing down the cost of acquisition while we guarantee the customers battery performance coupled with inflation proof running costs. We will own the battery, all that the customer needs to do is pay a monthly fee."
"With this, the acquisition cost of the e2o will come down on an average by about Rs 1.7 lakh in cities, including Bangalore, Delhi and Mumbai where it is presently available."
"We have had a lot of customers who liked the car but were deterred by the cost. Now with this, we hope we will make it more affordable for them and push up sales."
This battery rental setup has not been what we'd consider successful for Renault, so we're doubtful it'll work for Mahindra, an automaker who's sold only 500 units of its e2o since it launched in India in March of 2013.
Mahindra's battery rental program has an "energy fee" that starts at "Rs 2,599 per month which will allow the user to drive 50,000 km (800 km of usage per month) over 5 years," according to the Economic Times.
That equates to $42 USD per month for 498 miles of driving. Of course, other more expensive options are available for those who drive more than 500 miles per month.
Source: Economic Times