Mahindra Reva Electric Vehicle (MREV), maker of electric cars, is moving into the fast lane with government incentives, wider distribution network and institutional sales picking up.
Chetan Maini, chief of strategy and technology, MREV, said the company expects annual vehicle sales to jump to 5,000 units next year. Maini, who set up the Reva electric car in 1994, said the company has sold 4,000 vehicles globally till now.
“We are seeing a surge in demand for electric cars after the announcement of the government policy (that offers a 20% subsidy on electric cars). Next year, our target is (to sell) 5,000 cars,” he said.
In November last year, the government came out with a policy that offers a 20% subsidy on the price of 140 electric cars for the current fiscal. The subsidy budget will be increased to cover 700 cars next fiscal.
The government’s financial incentive has brought down the price of MREV’s non-AC electric car by Rs75,000 per car to Rs3.2 lakh from Rs4 lakh. For the AC car, it is down to Rs3.7 lakh from Rs4.5 lakh.
The company is also banking on institutional sales to push up its sales volumes. On Wednesday, SAP Labs announced its green car policy in collaboration with MREV which could result in sales of close to 35 cars in the next few months.
Read this article @ http://evhub.in/events/2011/03/govt-subsidy-may-rev-up-reva-sales/
