Mahindra Reva Turns Attention to Global Markets to Charge Up Sales
With India sales tepid, co plans to enter the UK and other European markets such as Netherlands and Norway for growth; expects local sales to look up soon ‘Hockey-stick’ Growth Curve
Mahindra Reva is building a portfolio of commercial vehicles — Verito Electric, Maxximo electric pickup and Supro electric Van — to cater to the fleet market
ecommerce companies, including Amazon and Flipkart are in talks with Mahindra Reva Mumbai: Mahindra & Mahindra’s electric vehicle unit is turning its focus to international markets and opportunities from the ecommerce and startup sectors, after having failed to make any meaningful inroads so far into the minds of the average Indian vehicle buyer. But loss-making Mahindra Reva expects the situation at home to improve soon. Chief Executive Arvind Mathew is predicting a “hockey stick growth curve in India” for electric vehicles, driven by increasing awareness towards green vehicles. “This is exactly what happened in London or Amsterdam,” he told ET.
Mahindra Reva is set to launch its E2O electric car in the UK over the coming fortnight, and is exploring the possibility of entering the Netherlands, Norway and some more Western European markets, said people in the know. At the same time, it is building a portfolio of
mercial vehicles to cater to the fleet market, especially demand from new-age companies. It is also hunting for a joint venture partner in China, the biggest electric market, to build scale for the future. Mathew said he has given himself three years to turn around the operations. The CEO sees exports and demand from fleet owners for commercial vehicles in the domestic market to contribute about three fourth of the overall volume, which he expects to grow about tenfold to 5,000 units a year in two to three years. “But till then, I need to spread my reach by going in to markets like Europe, China, where there is growth, and expand product portfolio by electrifying the Verito, Maxximo and Supro,
which are suitable for the fleet market,” Mathew said.
The new Verito Electric, Maxximo electric pickup and Supro electric Van are being readied to serve the growing ecommerce trading and startup world. Mahindra Reva said it has supplied about 200 units of the E2O to Lithium Urban Mobility, a Bengaluru-based company operating an electric-car fleet for corporate transport, and that there were a couple of confirmed orders for the Verito. There are five-six startup and ecommerce companies, including Amazon and Flipkart, which have discussed with Mahindra Reva about acquiring vehicles, Mathew said.
It has been more than five years since Mahindra acquired a majority stake in Reva. Despite regular fund infusion and support from Mahindra’s sales and supplier network, Reva has remained at the fringe. With just 550 units sold per annum, Mahindra Reva has struggled to build scale with buyers.
also hunting for a JV partner in China to build scale