Mahindra Reva is planning to increase its electric car production to 30,000 units annually over the next three years from its new plant in Bangalore. It?s a big target for the electric car maker that has been operating in a niche segment since it entered the market in 2001. Chetan Maini, founder of Reva who has donned the mantle of chief of technology and strategy after its takeover by the Mahindra Group in 2010, tells FE?s Ajay Sukumaran that the experience gained in the past decade will stand the company in good stead as the focus on electric vehicles increases globally. Edited excerpts:
You are looking at producing 6,000 electric cars in the first year. What is driving the optimism?
It is a very large number considering that over the last 10 years we have put around 4,500 vehicles on the road, in India and globally. We are talking of trying to exceed those numbers in the next year. It?s a set of changes at a macro level which haven?t happened before. The changes ? the increase in oil prices, the shift in technologies and the changing preferences of consumers ? are all coming together. And, from our perspective, I think we today have a product that is very stylish, embodies a new technology and has a higher performance level. I think it is a combination of the product, our capacities and the group?s distribution reach.
One of the key factors that went against you was the price of the car. How have you been able to tackle that in the new model?
We have made a lot of innovations to lower cost. Battery costs are coming down. But at the same time, we are putting in new technologies that make the car go further. That increases the pricing. At a purchase price level, electric cars are expensive, but when you look at the total cost of ownership, around 50 paise per km is very cost effective. The key for us is to put together an overall package for the customer where he can see the value proposition through. That is what we are going to work on over the next few months before launch.
You also licence your technology. What is happening in that space?
We have a licensing model. So far, since Mahindra has come on board, our focus has been to electrify several Mahindra platforms and that is keeping us very busy. I think, over time, we would definitely look at extending that outside the Mahindra Group.
How do you see yourself positioned today against when you started out?
We were a start-up then, we had to convince everyone about everything. Today, a lot of people are coming to us, be it the suppliers, people who finance the car or a dealership. It is very encouraging. We were a little ahead of the times, but it was correct that we started at that point because that experience has enabled us to develop the second generation of technologies that I think will be a differentiator. That, I think, is going to give us an advantage globally because we have more experience with electric cars than any other original equipment manufacturer.
What kind of extension are you seeking for the subsidy on electric vehicles that was stopped in March?
The new mission on electric mobility is talking about a policy that is coming out. The challenge so far has been that policies have been driven by every year?s budget and that?s very difficult for the industry to invest into. The industry needs to see a long-term five-seven-year policy. I think the government recognises that. Now, it is a matter of translating this into action.