Mahindra Reva inaugurates manufacturing facility in Bangalore

Mahindra Reva Electric Vehicles, a part of the USD 15.4 billion Mahindra Group, today inaugurated its manufacturing facility here, which is claimed to be the first platinum rated automobile facility in India.

Inaugurating the world–class, energy-efficient, green manufacturing facility, Mahindra Group Chairman Anand Mahindra said the new plant would churn out 30,000 Mahindra Reva electric cars in next three years. "In the first year, the company plans to sell 6,000 of the new model of EV 'NXR'."

Mahindra urged the central government to provide support to the growth of electric vehicles so that it becomes viable for everybody. "But the key anwser to that is that we should have focus on the cost," he added.

The company plans to launch  EV 'NXR' by Diwali this year, Mahindra said.

He said the company believes that the automobile industry is at an inflection point.

"This change is being driven by rapidly changing customer needs and dramatic advancements in automotive technologies, including the growing influence of electronics and IT in automobile products and solutions," he said.

Investment in plant and product is over Rs 100 crore, Mahindra Reva Chief (Strategy and Technology) Chetan Maini said.

Maini said there has to be a national policy on encouraging production of electric vehicles.

However, there are states like Gujarat, Delhi and Karnataka who are giving fiscal concessions in terms of reducing road taxes and providing subsidies.

Electric cars have a limited market in India because they cost more than diesel or gasoline vehicles owing to expense of imported lithium-ion batteries, he said.

The cost per kilometre of Mahindra Reva was much lower at 50 to 60 paise per km  and this was up to 10 times lower compared to petrol cars, he said.

Mahindra Reva was formed after Mahindra and Mahindra, purchased in May 2010 a controlling stake in the Maini-founded Reva Electric Car Company.