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Mahindra Reva is hoping for a quantum jump in volumes of its electric cars. Once volumes ramp up and supply chain is leveraged, there could be a positive impact on prices in three years, said Mr Chetan Maini, Chief of Technology and Strategy, Mahindra Reva.
Currently, the Reva car is priced at around Rs 3.2 lakh (non-A/C); prices came down by Rs 75,000 recently with the Government announcing a 20 per cent subsidy.
The company has 4,000 Reva vehicles on road. Its current production capacity at its Bangalore plant is around 6,000 vehicles a year. Mahindra Reva is building a greenfield plant in Bommasandra in Bangalore, which is expected to be operational by the end of the year. This plant will have a capacity of 30,000 vehicles.
“We are looking to ramp up sales to 5,000 vehicles next year. This will be a quantum jump in volumes for us,” said Mr R. Chandramouli, the company's President of Sales and Marketing. He is betting big on consumer awareness growing. “With fuel prices going up, people will look for alternatives,” he said.
Apart from capacity, the company is also looking to ramp up distribution. Currently, it is available in 20 cities; the target is 100 outlets next year.
“If we leverage the supply chain and volumes ramp up, in three years we could see an advantage (in terms of pricing) and this will be passed on to consumers,” said Mr Maini.
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