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The company has received a major boost with the European Economic Community awarding it a certificate for going ahead with homologation of its electric car.

Bangalore , Dec. 9

THE country's first electric car company, Reva, is in talks with the International Finance Corporation and another private investor to raise $15 million to fund its foray into Europe and Japan and expand its capacity.

"We should be able to close the deal by the first quarter next year," Mr Chetan Maini, Managing Director, Reva Electric Car Company, told Business Line. Mr Maini said the company plans to part with its equity to raise funding.

Sources close to the company said it could be as much as 24 per cent. But Mr Maini said though the negotiations are at an advanced stage, the percentage of equity to be shed has not been firmed up yet.

The Maini Group Chairman, Mr Sudarshan Maini, said the group's automobile components' company also plans to raise funds to expand capacity. He said the company expects to earn around $16 million from its components' business.

Reva plans to increase the capacity of its plant in Bangalore to 50,000 per annum from 6,000. It also plans to introduce newer models, a bigger version of Reva and a vehicle for public transport. Reva has already invested around $20 million in the company so far.

Mr Maini earlier told a news conference that the company has received a major boost with the European Economic Community awarding it a certificate for going ahead with homologation of its electric car. He said the company has tied up with the UK-based Going Green Ltd to market its cars in Europe. The Reva car will be sold under the brand name G-Wiz in Europe. The company expects to sell around 500 cars in the UK in a year's time. It has already exported 15 cars to the UK for test-driving. Mr Maini said more customers in Europe were opting for smaller cars because of increasing traffic congestion. He said the company has at least 10 patents and has been able to develop the required technology at a much cheaper cost than others.

He said certain international auto majors have bought electric car companies at a lower valuation but had to pump in more funds than the acquisition cost itself to make it a viable proposition

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