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Mahindra Reva Electric Vehicle records three-fold rise in average monthly sales following MNRE subsidy

Panchabuta had reported in November last year that, India had  launched incentive for Electric Vehicle makers of upto 20% of ex-factory price.  A ceiling on the subsidy for EV cars was placed at Rs. 100,000 and it was mandated that atleast 30 per cent indigenous content was used in the vehicles sold, a sizeable operation in retail and after sales outlets and a multi-point check system for accounting the retail sale was also available.

Further, in December last year, Mahindra Reva Electric Vehicles launched its Electric Car REVAi in Pune.

In a major announcement for the EV community earlier this month, presenting the General Budget 2011-12, Shri Pranab Mukherjee, Finance Minister informed that to provide green and clean transportation for the masses, a National Mission for Hybrid and Electric Vehicles will be launched in collaboration with all stakeholders.

According to reports, car maker Mahindra Reva Electric Vehicle (MREV) has recorded a three-fold rise in average monthly sales in the last three months, boosted by incentives announced by the Ministry of New and Renewable Energy (MNRE). “Following the 20 per cent subsidy announced by MNRE, average monthly sales for the December-February period have tripled, compared to the average sales in the April-November period,” R Chandramouli, chief of operations, MREV, said.

“As a private limited company, we don’t give sales figures. However, there has been a three-fold rise in sales and we hope sales will continue to rise. We expect to sell close to 3,000 units in the next financial year,” he said. MNRE had announced a Rs 95-crore incentive scheme in November 2010, providing incentives of up to 20 per cent on ex-factory prices of electric vehicles sold in India for the remainder of the XI Plan. According to the notification, the government would subsidise 140 electric passenger car units, and the figure would be raised to 700 units in the next few financial years, apart from subsidies to other electric vehicles. However, the subsidy would have a cap of Rs 1,00,000 for an electric car.

“The subsidy has brought down the price of REVAi by around Rs 75,000. A non-AC version, which was earlier priced at Rs 3.9 lakh, is now available for Rs 3.2 lakh, while the price for an AC version is Rs 3.7 lakh, compared to Rs 4.5 lakh earlier,” he said.

This is great news to hear and industry leaders like Mahindra should take a leadership role in framing the National Mission for Hybrid and Electric Vehicles policy and should work across the spectrum.

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