General Motors India, the wholly-owned subsidiary of American carmaker General Motors Corporation, is in advanced talks with the world's leading electric car manufacturing company, Bangalore-based Reva Electric Car Company, for a technical collaboration and a joint venture.
"We have been pursuing opportunities for commercial application of alternative fuel options, including bio-diesel, jatropha arrangement with CSMCRI (Central Salt and Marine Chemicals Research Institute), electric, fuel cell, hydrogen etc, with many parties for quite some time," said GM India's vice-president of corporate affairs, P Balendran. "Our efforts are ongoing and we have nothing to announce as of now. As soon as we finalise our plans for introduction of any alternative fuel solutions, we will announce the same," he added.
The two companies will enter into a 50:50 joint venture (JV), which is currently awaiting the green signal from GM's Detroit headquarters. If the JV goes through, it will be GM's first deal since it filed for Chapter 11 bankruptcy.
The new alliance is another indicator of how much the Indian market means to the Chevy (Chevrolet) brand and the significance of electric vehicles in GM's growth plans. GM has already indicated that it will introduce the Volt electric vehicle in India in a completely-imported form.
The Reva tie-up is crucial for General Motors because it will offer the cash-strapped Detroit major the chance to source the technology of the future at more competitive rates. GM has already indicated that e-vehicles are its chosen technology of the future. And it's not the only one. Ford and Chrysler as well as Japanese auto majors Toyota, Nissan and Honda are all queuing up.
Reva has just announced that it will unveil two new models at the upcoming 63rd Frankfurt International Motor Show. The Reva NXR (next revolution), a sporty two-seater with a targa roof, will go into production in 2011 and the REVA NXG (next generation) will be available from next year.