Reva today extended its footprint in India with the launch of Revai in Delhi. Reva launched its first electric car in Bangalore seven years ago but the absence of any subsidy and the high cost keeps the normal buyer away from Reva. But Reva has made its foot mark in England where the car was launched in London in 2004 and selling over 1,000 units every year. Reva also sells electric cars in Norway, Ireland, Spain, Belgium, Japan, Malta, Sri Lanka, Cyprus and Greece. With today’s launch Delhi becomes the second Indian city to get the Reva in India. Unlike other states, Delhi has given ample subsidy to reva. A 15 percent subsidy on the base price of the vehicle, a 12.5 percent exemption on value added tax (VAT), and refund of road tax and registration charges from the Delhi government has made the car to come with a price tag of Rs.299,000. Without these subsidies Reva is retailed around Rs4 lakhs.
Reva’s plan:
Reva plans to ramp up its production capacity by five fold this year on account of increased demand amidst rising petroleum prices. Reva currently has a capacity of 6,000 cars a year and is expanding its production to 30,000 units by the end of this year. The investment for this expansion plan is $20 million and the company would start utilising the full capacity after three years. Reva will introduce one new model and one new variant each year for the next 3-4 years.