Mahindra Reva ElectricVehicles Pvt. Ltd. Wednesday opened a southern-India factory the company hopes can expand its sales of Reva brand electric vehicles.
Mahindra Reva Electric Vehicles Pvt. Ltd. Wednesday opened a southern-India factory the company hopes can expand its sales of Reva brand electric cars.
The new factory in the technology hub of Bangalore can turnout 30,000 vehicles a year but will start with 6,000, Chetan Maini, chief of technology and strategy at Mahindra Reva Electric Vehicles, told a news conference.
Mahindra Reva was formed after Mahindra & Mahindra Ltd. (500520.BY), India biggest sport-utility vehicle and tractor maker by sales, purchased in May 2010 a controlling stake in the Mr. Maini-founded Reva Electric Car Co.
The plant cost more than 1 billion rupees, Mr. Maini said, adding that the company plans to export the new NXR electric car to Europe from next year. Mahindra Reva already exports its current Reva range to several countries, including some in Europe. Its existing factory is also in Bangalore.
“Electric vehicles are a very potent weapon for our global ambitions,” said Anand Mahindra, chairman and managing director of Mahindra.
Electric cars have a limited market in India because they cost more than diesel or gasoline vehicles owing to the expense of imported lithium-ion batteries, he said.
Governments world-wide must offer incentives for building eco-friendly, electric vehicles and for lower-cost batteries to make car prices more affordable, Mr. Mahindra added.