Mahindra Reva, die Tochtergesellschaft der größten Energieunternehmen Indiens Automobilhersteller Mahindra & Mahindra, seine E2O elektrischen Kleinwagen März starten, despite the end of federal subsidies that lower the purchase price for consumers.

The finance minister P. Chidambaram while extending the benefits for importing critical components like battery and electronic components for electric cars did not roll out the National Mission for Electric & Hybrid Mobility which was announced a couple of months back.

Chetan Maini, Chief of Technology and Strategy at Mahindra Reva is disappointed that there was no intervention for electric cars from the government.

He said: “On one hand the government is talking about energy security and tackling urban pollution, and the medium to resolve these issues through electric cars was not supported. While the electric vehicle policy was announced a few months back, we are hoping for it to be implemented quickly, so that the much needed subsidy is extended for the segment to grow.”

Maini added, “The subsidy would have been welcome, but now we will have to look at our internal strategy to launch the product, with the hope that the policy will be soon implemented.”

Despite the incentive setback, Mahindra is still hoping to sell 30,000 E2O units by 2015-2016, half of them for export. The vehicles are manufactured at a recently-opened factory in Bengalaru which is capable of churning out 30,000 cars a year.

The E2O is likely to have a top speed of 100 kilometers per hour and a range of 60 miles on a full charge, but is smaller than premium hatchbacks like Swift and i20. The government is planning to offer a support to the tune of Rs 23,000 crore over eight years, post implementation.

Mahindra Reva’s main competition in the segment is the Manuti Suzuki Swift and Hyunda i20.

Mahindra & Mahindra is India’s largest truck and tractor manufacturer, and Reva is its electric car division. The company was founded in 1994 by Chetan Maini, a former Bosch India engineer, and named for his wife, Reva. Mahindra & Mahindra purchased a controlling interest in 2010.

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