Reva to Offer Battery Leasing to Stimulate Electric Car Sales in India

Leasing would reduce purchase price of car by about Rs 60,000 (US$1283).

Published: 22-Oct-2009

Come 2010 and Bangalore-based Reva Electric Car Company (RECC) will try various initiatives to increase sales of its electric cars in the domestic market, so far at only around 200 units a year.

One strategy involves charging customers only for the electric car, minus the battery pack which propels it. “The project is called ‘battery leasing’. By doing this, we will be able to reduce the cost of an electric car by about Rs 60,000. We are in talks with banks for the battery leasing project,” says Chetan Maini, deputy chairman & chief technology officer. Battery leasing would bring down the cost of the lead acid fuelled car to around Rs 2.40 lakh (ex-Delhi showroom), and of an advanced lithium battery car to around Rs 3 lakh.

Battery leasing is the first leg in Maini’s four-pronged approach to increase sales of electric cars in the domestic market. The next step is to expand Reva’s dealerships, which have clustered in Bangalore and Delhi. Last month, RECC signed a technological joint venture with General Motors India to supply its plug-in electric car technology for GM’s entry car, Spark. The electric Spark will debut in 2010. “This joint venture also gives us an opportunity to sell the Reva brand of cars in the 175 sales outlets of General Motors,” says R Chandramouli, president (sales & marketing) of RECC. In the first phase, Reva electric cars would be available at GM’s 30 dealerships.

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