It seems American president Barack Obama’s call on protecting environment in the US has started paying dividends, as Reva Electric Car Company (RECC), an India-based global electric car major, is weighing options to set up its manufacturing facility in the US.
If this happens, Reva will have a rare merit of foraying into the US during the current economic slowdown, when several other major players across sectors are shutting operations and cutting workforce in India and the US.
“Things have been changing during the past three-six months in the US on environmental front. Owing to positive (environment related) policies in Europe and the US, we are definitely reviewing possibilities of looking at operations in both these regions,” said Chetan Kumaar Maini, deputy chairman and chief technical officer of Reva.
“It’s premature to disclose anything in this connection,” he noted, adding, “some of the state governments in the US have approached us to set up operations there. We are reviewing several options because Reva has a strong technology and we have more experience globally than any one else.”
Obama has announced his government’s interest in encouraging eco-friendly developments including green cars. He wants to see one-million electric and plug-in cars on Amercia’s highways by 2015.
With the US planning for eco-friendly policies, Reva also plans to roll out specific models for the US. Maini said, “We have to change the product for the US market and that will take some time. But, we do believe that in the long term, we would like to be in the US market.”
Reva cars are already more popular in the overseas market, primarily in the UK, than in India. Of the total 3,000 vehicles sold so far, Maini said around 1,000 cars are plying on UK roads. Every year, the company registers 50:50 sales in the domestic and overseas market, he added.
According to a Mumbai-based auto analyst, fund raising may not be a problem for the company, if it has plans to set up operations in the US. This is because it has excellent reputation with global investors, with proven track record in the growing environment-related business segment.
The company attracted $20 million in investment from Washington DC-based Global Environmental Fund (GEF) and San Francisco-headquartered Draper Fisher Jurveston (DFJ) in 2006 to expand its production facility locally and markets globally.
Currently, only a few electric car players are competing in the global market. Among them, India’s Reva, Elbil Norge of Norway, France-based Aixam that sells its car under the brand of NICE in the UK, EFFEDI of Italy and EuAuto of Hong Kong have a major chunk in the global ‘affordable’ electric-driven small / mini car business.