GM inks pact with Reva for electric variant of Spark

The two companies are looking at both domestic and overseas markets for the proposed small car based on the platform of Chevrolet Spark and plans to turn India into a hub for electric vehicles. This is in line with the strategy of its parent company, General Motors, which will launch Chevy Volt in the US next year.

General Motors India is looking at selling 4,000-6,000 electric Sparks along with 40,000 gasoline-run variants annually from the second half of 2010.

?Within 12 months, we will have the car on the roads. We are beginning our electric car venture with Reva on the existing GM platform and the first car would be an electric Chevrolet Spark,? Karl Slym, president and managing director, General Motors India, said. He added that the company has already started working on test vehicles and is doing feasibility studies for the last 10 months.

GM and Reva would also be targeting the export market for the new electric car. GM sells Spark in over 100 countries across the world. ?The initial focus would be on the domestic market. Later, our overall intention is to make sure that the car can compete overseas also,? Slym said.

According to Slym, the two companies are open to expanding the electric model to its other cars also but nothing has been finalised yet. ?The electric Spark would have 90% localisation of components and its owners can use plug-ins at their homes to recharge the car,? Slym said. He added that the car could be made either in Halol or Talegaon as both the plants currently manufacture Spark.

The company has sold over 35 lakh of Spark with the internal combustion engine across the globe. The Indian electric vehicle market is still at a nascent stage with only about two lakh such vehicles on the road, including 2,000 electric cars.

Sales of GM India declined by 3.3% in August at 5,875 units while the overall passenger vehicle industry registered a growth of 22.4% at 1,52,100 units.