Latest Car News in India

Monday, May 07, 2012

By Manoj Kumawat

Reva sales fall drastically, subsidy scheme ends

Government’s take on the subsidy for the electric cars is still under haze thereby resulting in downfall in the Reva Electric car sales by over 50%. Of late the Ministry of New and Renewable Energy had proclaimed a huge subsidy proposal on Electric Reva, but this suggestion was terminated. Rumour has it that the National Council of Electric Mobility is contemplating to roll out a scheme on Electric Reva, though nothing has been initiated towards it. According to the earlier scheme a 20% discount was offered on the factory price or Rs 1 lakh which resulted in reduction in the price of Reva ranging between Rs 73,000 to Rs 93,000.

Reva NXR Pictures

See More Reva NXR Photos Get Reva NXR Price

The mini electric car is being sold under the Mahindra brand comes with a price tag ranging between Rs 4 lakh to Rs 4.87 lakh (ex-showroom price). The government subsidy ended on March 31st, 2012 due to which the buyers now will have to pay the full amount to make it a part of their garage.

Reva NXR Pictures

See More Reva NXR Photos Get Reva NXR Price

Since it is being sold under M&M brand, it could hit the sales of M&M which currently stands intact. Mahindra has splurged Rs 100 crores in Reva project, the company has also hiked its holdings in mini electric car Reva from 55.2 % to 64.26%. Mahindra has two segregate outlets for the mini electric car and it has also slated the launch of Mahindra Reva NXR model for which a new facility is being set up which will have a capacity to produce 30,000 cars on yearly basis. The success of the new model will majorly depend on the introduction of new subsidy.

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