REVA bucks auto trend with Indian expansion plans

Bangalore, India-based REVA Electric Car said it plans to double production of its electric mini-car by building a new factory in Bangalore.

The new facility is expected to have an annual production of 30,000 vehicles, branded as the G-Wiz in the UK and the REVA in India. The company, which has fewer than 2,000 vehicles on the road, ended 2008 with a capacity to produce 30,000, according to its Web site.

The company is expanding as many auto makers are cutting back. REVA also sells the car in Ireland, Belgium, Spain, Cyprus, Greece, France and Norway, with plans to add distributors in Hungary, Slovenia, South America and parts of Asia.

The company is also adding local distributors. In January, Reliance Digital announced plans to sell the REVA brand of electric cars through its outlets across the country (see Indian company lets drivers opt-in for electric battery).

The REVA vehicle was launched in 2001 under a joint venture between the Maini Group India and California's AEV to manufacture efficient and inexpensive vehicles. Investors include Global Environment Fund and Draper Fisher Jurvetson.

The net price to REVA customers in India after government subsidies ranges from Rs 300,000 to Rs 389,000 ($6,100 to $8,000), with an operational cost of Rs 40 ($0.82) for 100 kilometers (see Reva-ing it up in Delhi!).  

See photos of the REVA here »

REVA has plans to launch a sedan version of the REVA in 2009, as well as a version with a lithium-ion battery capable of a range of 75 miles by May.

REVA officials said the new plant is expected to be build to platinum-level LEED certification for green buildings, with features such as rainwater harvesting, natural light and ventilation, solar energy systems and a CO₂ monitor.

The company is responding to massive demand and an underserved market in India for small, cheap vehicles, with a current automobile penetration of eight vehicles for every 1,000 people. REVA's highly efficient car is expected to have several competitors.

Toronto-based Electrovaya (TSX: EFL) and Mumbai, India's Tata Motors (NYSE:TTM) have partnered to produce the electric version of Tata’s Indica hatchback. The Indica EV is scheduled to be launched in Norway in 2009 and India in 2010 (see Electrovaya, Tata Motors to make electric Indica).

Gujarat, India-based ElectroTherm India started a vehicle division in 2006, with battery-operated bikes and plans for electric three- and four-wheeled vehicles and hybrid-electric low-floor buses (see ElectroTherm India spins off electric vehicle segment). 

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