M&M eyes European market for Reva e2o
GREEN DRIVE India sales lukewarm; electric car maker working to meet EU norms, start exports by end of 2014 CLEAN RIDE IN THE CONTINENT
MUMBAI: Even as the sale of its first four-seater electric car e2o, which was launched last year, is struggling to gain traction in India in the absence of a government subsidy and charging infrastructure, Mahindra Reva is planning to enter the European market.
“We will export the e2o to Europe by the end of this year,” Chetan Maini, founder and chief executive officer of Mahindra Reva, told HT. The company is working to meet stricter standards of European regulations. The e2o will have to meet requirements for M1 classification under European Union regulations just as in the case of conventional fuel-run cars of BMW and Audi.
Reva had shipped about 2,000 units of its two-seater electric vehicles, or about 45% of its total sales, to the UK, Norway and other European countries where Mahindra Reva launched e2o last year with a target of making 30,000 units a year by 2015-16
However, ever since its launch in March 2013, it clocked only 500 units so far as the govt withdrew subsidy for e-cars The subsidy may be reintroduced in April, which will make the e2o cheaper they were sold under the quadricycle category. “We can get to similar 30-40% of our volume to come from Europe. It will definitely help us build e2o sales,” he said. “The Netherlands, Germany and France too are potential markets for the e2o.”
Mahindra Reva launched e2o last year with an ambitious target of 30,000 units a year by 2015-16. However, ever since its launch in March 2013, it clocked only 500 units so far as government had withdrawn subsidy. To promote sales, the company brought down the prices by `1.7 lakh to `4.99 lakh by introducing a new scheme under which buyers will have to pay `2,599 every month for battery maintenance.
“If the subsidy will roll out in next few months, we could still reach our target of 30,000 (units) in 20015-16,” said Maini.