Mahindra Reva lines up offer to boost E2O electric car sales

The Mahindra Reva E2O, a successor of the Reva-i, was launched in India during March 2013. Ever since, Mahindra Reva has managed to sell a paltry 140 units of the electric car in the Indian car market, a far cry from the 400-500 units/month target sales figure. The low sales of the E2O electric car mainly has to do with the high price tag that the car has been launched with.

Apart from Delhi, whose state government doles out a direct subsidy to the E2O, the electric car's price in most Indian cities hovers close to the 8 lakh rupee mark, an expensive proposition for a vehicle that cannot be used outside the city due to its limited 100 Km battery range. 

To boost sales, Mahindra Reva has come up with a unique initiative that subsidizes the E2O buyer by about 73,000 to 83,000 rupees. For 3 years, Mahindra Reva dealers across the country will reimburse the Reva E2O's electric bill each month at the rate of 5 rupees per unit of electricity consumed. The reimbursement, according to Mahindra Reva, works out to 25,000-35,000 rupees over a period of 3 years. 

Click here to read Team-BHP's official review of the Mahindra Reva E2O. 

Apart from this reimbursement, Mahindra Reva dealers are also offering a 3 year/60,000 Kms extended warranty worth 18,000 rupees on the E2O. An exchange bonus worth 30,000 rupees is also being offered. Together, these discount schemes total 73,000-83,000 rupees. Although these discounts do make the E2O a little more attractive than is the case currently, it would be interesting to see if they actually translate into more sales. 

The real boost to the E2O could come after the Indian government announces the quantum of direct subsidy that electric cars are likely to get through the National Electric Mobility Mission Plan (NEMMP) 2020. The official implementation NEMMP 2020 has been plagued with delay after delay, and the timeline for implementation remains uncertain. 

Mahindra Reva is readying up a more powerful version of the E2O electric car in view of markets abroad. The electric car making division of Mahindra is likely to start exports early next year. From the looks of it, the E2O could become a car whose export volumes outshines its domestic volumes.