Looking at the present industry scenario, it seems as if top Indian utility vehicle manufacturer Mahindra & Mahindra is feeling wary about the sales of its new electric vehicle, Reva e20. Initial reports suggested that the company was expecting to achieve a monthly sales target of 600 vehicles, but this appears highly difficult, going by the lukewarm market response. A new green mantra was adopted by the company in a bid to strike a chord with customers looking to prevent environmental pollution and save money on fuel, but that has not happened yet.
Industry experts believe that a high price tag of Rs. 5.96 lakh for the Mahindra Reva e2o is acting as a deterrent for several buyers. Even when the Revai was being manufactured, it seemed to lose out due to high price. However, Chairman & Managing Director of Mahindra Group, Anand Mahindra said that customers should go by the long term cost and pollution prevention advantages of this vehicle, rather than looking at its current cost. Reportedly, the e20’s running costs are only 50 to 60 paise per km, which generates savings of almost Rs. 7 more than fuel powered vehicles. Commenting on the same lines, Pawan Goenka, President of the Automotive and Farm Equipment sectors for Mahindra said, “This is not something that was expected to go this way. Of course, the subsidy comes in the way and people think that the cost is very high. But the fact is that in electric vehicles, you cannot look at the initial purchase price only because there is significant lower per km cost- 50 paise vs almost Rs 6 to 7.” Mahindra wanted to launch the new e20 after Union Budget 2013 to get possible subsidies, but unfortunately, no such leverage was announced.
Mahindra Reva has made use of many latest technologies in the e20. It used Lithium ion batteries that are much lighter than traditional batteries. Complete battery charging can be achieved in a time of 5 hours, after which the vehicle can travel for 5 hours. But even if partial charging is to be achieved, this option has been provided, which would allow the vehicle to travel 25 km by charging for 15 minutes. Regenerative braking sends energy back to the batteries, which is highly suitable for start-and-stop traffic.
However, the lukewarm response for this electric vehicle indicates that India is yet to recognise the value of plug and drive cars. The company wishes to retain a first mover advantage in India, as such vehicles are slowly becoming popular in developed markets. However, once subsidies are provided by the Government, the Mahindra Reva e20 has the potential to change the face of the Indian automobile market.
