Reva electric vehicle sales drop by half: Mahindra NXR launch requires new policy to boost EV sales in Indian auto market

A policy regarding Government subsidy seems to have gone awry resulting in the sales of Reva Electric car dipping by more than 50%. The Ministry of New and Renewable Energy had announced a major subsidy scheme for the Electric Reva but this scheme has lapsed even before the new and even better policy will be initiated by National Council of Electric Mobility. The earlier subsidy offered a 20% discount on factory price or Rs.1 lakh thus making the electric Reva cheaper by Rs.73,000 to Rs.93,000.

Mahindra & Mahindra which have a major holding on the electric mini car now sells the car for Rs.4 to Rs.4.87 lakhs but with the Government subsidy lapsing on March 31st, buyers will have to pay the exorbitant price in full.

This will throw M&M sales off balance. M&M have invested over Rs.100 crores in this project and have even increased their holdings fro, 55.2% to 64.26%. The company has 2 separate outlets for the Reva and will also be launching NXR Model for which they are setting up a new plant which can produce upto 30000 cars per annum. However, success of this new model will entirely depend on the new subsidy scheme and how affordable it makes the electric mini car to customers.