Will Mahindra Reva e2o electric car help you save money?
Mahindra Reva, the electric car company, owned by $15 billion Mahindra Group, launched their new e2o EV early last week. Priced at Rs 5.96 lakh (on road Delhi, after state subsidy), e2o is being projected as a car which will save you as much as much as Rs 4 lakhs by the end of 5 years. We find how true is that.
There is no doubt that the launch of e2o marks a major milestone in the development of Mahindra Group, but is the car really cost effective, as portrayed?
This two door, four seater vehicle possesses the new generation lithium ion batteries and three phase induction electric motor. It possesses a driving range of 100 kms per single charge and takes a total of five hours to complete one charge. Aimed at city driving, the M&M e2o possesses GPS navigation system, keyless entry, start stop button and a highly efficient braking system which causes batteries to charge every time the vehicle slows down or brakes.
As per their website, Mahindra Reva e2o is available in 5 Indian states – Gujarat, Andhra Pradesh, Karnataka, Kerala, and Maharashtra, and 2 Union Territories – Delhi and Chandigarh. We contacted a dealer in Pune. He revealed the price of e2o in Pune is at INR 7.74 lakhs for the base model. The state of Maharashtra does not grant the 29% subsidy offered on electric cars by Delhi Government, and same is the case with other states. In Ahmedabad, the price of e2o touches INR 8.5 lakhs.
Now if you see the Cost of ownership savings in the image above, you can see how Mahindra Reva explains one can save upto INR 3.84 lakhs by buying the new e2o. But what happens to this almost 4 lakhs figure when you take a diesel car into consideration?
Tata Indica eV2 LS powered by 1.4L diesel engine is priced at INR 5.20 lakhs (on road) and offers 25 kmpl. So if you pit this car against e2o, your savings are brought down to just INR 104,169 over five years (diesel price in Delhi = 48.67). But then, you are also spending almost INR 76,000 more on buying e2o in Delhi, INR 2.54 lakhs more in Pune and INR 3.30 lakhs more in Ahmedabad.
Now looking at the maintenance part. Mahindra Reva says you need to service e2o just once a year and as it features lesser moving parts, the chances of wear and tear are less. e2o does not need air filter, oil filter, etc and this leads to saving 75% on maintenance and servicing. But then, the battery life of e2o is at a maximum of 5 years. So you will need to invest INR 2 lakhs every 5 years to change battery.
All said and done, we do not think the e2o is a cost effective car as of today. In fact, its quite opposite. Mahindra Reva e2o is most suitable for those who would want to reduce their carbon footprint and do their bit for the environment.