World’s largest electric carmaker Reva Motors, owned by utility vehicle major Mahindra and Mahindra (M&M), plans to enter China, hoping to cash in on a rising demand for ecofriendly cars as governments push for stricter emission norms globally.
The Bangalore-based company looks to introduce its massmarket model in China which promotes ecofriendly vehicles through a subsidy programme.
“China is one of the largest auto market and given the huge demand for eco-friendly vehicles it could generate in future, we would like to take our new cars into that market,” said Pawan Goenka, chairman, Mahindra Reva Electric.
M&M bought a controlling stake in Reva Electric Car in May this year, placing it in a position to capitalise on the scorching pace at which electric vehicle market is expected to grow in the next decade.
China, which sold 13 million vehicles last year, plans to sell 5 million electric cars by 2020. Reva currently ships cars to its electric vehicle (EV) markets such as the UK and Norway.
China plans to establish an electric charging network across its major cities to cater for such new energy vehicles. “The recent change in technologies would help us to cater to the wider need of global markets,” said Chetan Maini, chief of technology, Mahindra Reva. Reva has sold only 3,500 cars in 24 countries as lack of battery charging networks hindering its prospects.
Reva, established in 1994 at Bangalore as a joint-venture between Indian Maini Group and AEV LLC of California, has added brownfield capacity of 30,000 cars this year to take its total capacity to around 40,000 cars per year.