Mahindra to introduce more electric vehicles in India

Mahindra and Mahindra Ltd. (M&M), the only manufacturer of electric cars in India, has announced plans to introduce more electric vehicles in the next three years, as it takes advantage of a government program that will boost the popularity of electric and hybrid vehicles in the country.
India will spend Rs22, 500 crore (US$4.25 billion) over the next eight years to promote electric and hybrid vehicles so as to reduce dependence on fossil fuels. The government has a plan to provide Rs13,000-14,000 crore (US$2.45-2.65 billion) in the form of income tax incentives for buyers of electric vehicles and subsidies to manufacturers. The remaining amount will be invested by the auto industry in research and development activities.
M&M has already built a vehicle plant in Bangalore with a capacity of 30,000 units a year. Pawan Goenka, president of Mahindra’s automotive division, which sells e-cars through Mahindra Reva Electric Vehicles, says that they are set on launching the electric car NXR in October.
“With government support coming in, there will be a lot of interest in the electric vehicle segment. We will have to dominate the market before anyone else does it,” he said.
The main concern that could hamper the growth in the e-vehicle segment according to Goenka, is the “initial cost of vehicle and the running range of a car. If we decide to go ahead of 100 km range, the price will go up. So, affordability is the key. If we give an honest-looking vehicle with reasonable speed at an affordable price, people will be willing to buy” an electric vehicle.
M&M plans to sell its vehicles at a 10-20% premium over petrol-run vehicles. In 2011-12, about 130,000 electric vehicles were sold in India at around Rs3.5 lakh (US$ 6,600). (September 7, 2012)