Bangalore, June 16
REVA Motors hopes to raise $15 million this year for its expansion plans, which includes strengthening distribution network to 10 more cities, stepping up exports and achieving full manufacturing capacity of its electric passenger vehicle.
The company, which launched its vehicle four years ago, has already invested Rs 100 crore.
Talking to Business Line on the sidelines of CII's Innovation Summit here on Thursday, Mr Chetan Maini, Vice-Chairman of Reva Motors, said that the company plans to scale up to full capacity utilisation of 6,000 cars per year in about two years.
Reva Motors hopes to achieve a production of 1,500 cars this year. Mr Maini said Industrial Finance Corporation of India (IFCI) was likely to release $1 million from the Environment Fund to Reva Motors for technology purgation.
About the fresh funding, he said the company was in talks with private equity funds and venture capital companies. He declined to give details pleading confidentiality agreement.
About the slow response to the vehicles in India as against faster growth in exports, Mr Maini said unless the Government also extended policy support to encourage the new technology, it would be difficult to expect a faster demand.
Introduction of VAT had deprived it of the sales tax exemption it enjoyed in a few States, resulting in the increase in the price. On exports, he said better margin, more awareness about the value of an electric car in combating pollution and more support from the Government encouraged Reva's faster growth in the export market.
He said the UK gives incentive to buyers of non-polluting vehicles, which ranges up to £1,000. Reva is planning to produce a left-hand drive system to capture newer market such as Italy and France. It now exports to the UK, Malta and Cyprus.