Its been quite a while since the first electric vehicle of India , manufactured by the Reva electric company has been around. Reva, the first electric car is in itself a pride of India, that showed that India is not far ahead of mastering the Electric car manufacturing. It was infact a role model for many other electric cars that were manufactured elsewhere in the world. But then there is always a balancing act needed to turn the tables of business and that is precisely what Mahindra auto has decided.
Mahindra has decided to buy out Reva that will thus add another feather in the already crowded Mahindra ‘s auto hat.Although REVA was an early entrant in the market of electric vehicles, it was not able to capitalize the market share owing to different reasons. Till date, it is assumed that only around 3000 units of the REVA have been sold in the last few years in Bangalore. The RECC(Reva electric car company ) was originally founded by the Maini group and the AEV LLC of California, backed by a few venture capitalists:Global environment fund and Draper Fisher. One main reason why REVA couldnt make its mark in the Indian market was its unconventional looks,coupled by the high price tag for a car that could only accomodate 2 people. nevertheless the advent of electric technology in cars promises a lot more than just plug and drive.
Thus RECC , now believed to be valued at 100 million dollars is about to be bought out by the Mahindra M&M group. It seems like M&M wants to massively mobilise and consolidate the Electric vehicle market in India before there are any new entrants . It seems plausible that given such a large consumer base, there are speculations that M&M definetely has larger plans to unfold the era of Electric vehicles in India and it has already taken the first step towards achieving the impossible.
What remains to be seen is that what would happen to the last years deal which REVA cut out with GM to provide electric powertrains to the GM’s chevrolet spark vehicle. It is highly interesting to see whether M&M after the buyout would continue with this deal or not. But then this M&M mahindra merger with another state of the art Indian automotive brand REVA is first of its kind to happen in the vibrant indian automotive market.