The Mahindra Reva E2O electric car is a poor seller despite the product coming with many improvements over its predecessor such as better performance, an increased range and seating for four adults. The high price of the electric car has been a major reason for its lackadaisical performance at the hustings and the Indian government hasn’t helped matters by doing away with subsidies for electric and hybrid vehicles.
A new policy and subsidy structure, under the National Electric Mobility Mission Plan (NEMMP) 2020 is yet to come into effect and this delay has seen electric vehicle sales bottom out in India. India is in the midst of electing a new government and the NEMMP 2020 hinges on the cabinet decision to approve the plan that the Ministry of Road Transport has readied up.
This plan recommends subsidies between 1.5 lakh rupees to 12 lakh rupees on electric and hybrid vehicles. Once the new government’s cabinet approves the final framework of the subsidy, the Mahindra Reva E2O is expected to be a major beneficiary, with the price of the electric car likely to drop by a whopping 1.5 lakh rupees. Currently, the E2O is priced at 6.79 lakh rupees, ex-showroom Bangalore.
Mahindra recently introduced a battery rental scheme on the E2O, through which a Mahindra E2O buyer can choose to rent out the lithium ion batteries powering the car for an EMI of 2,599 rupees. The rental scheme reduced the price of the E2O by a full 1.7 lakh rupees. Therefore, if the 1.5 lakh rupees subsidy is announced by the Indian government, the price of the E2O could fall to 3.6 lakh rupees, factoring in the battery rental scheme.
Does the Mahindra Reva E2O electric car make more sense than a petrol powered automatic hatchback like the Maruti Suzuki Celerio? Click here to find out.
In a nutshell, owning and driving a Mahindra Reva E2O electric car could be as cost effective as driving a Maruti Alto 800 or a Hyundai Eon. Expect sales of the E2O to pick up considerably, once the new subsidy structure is in force. Mahindra is also likely to hasten the launch of more electric vehicles in India, such as the electric versions of the Maxximo and Gio pick up trucks and the Verito Electric sedan.