Even as Mahindra Reva Electric Vehicles (MREV) gears up to launch five new electric vehicles in the next four years, it is a long way to go for the electric car market in India. With just one car in its electric car line-up the Mahindra group company is finalizing an aggressive product roadmap to expand its electric car business in India and overseas markets.
Alternative fuel-driven vehicles especially electric cars or hybrids has failed to take off in India with automotive companies either their shelving plans or postponing their projects substantially.
For instance the Honda Civic Hybrid which was launched in mid-2008 was discontinued in India a few months later. Initial price tag of the car was a steep Rs 22 lakh. However with the cost keeping buyers at bay the company was forced to offer heavy discounts on it. A Rs 8 lakh discount was offered on the Honda Civic Hybrid, resulting in the entire stock being sold.
On the other hand, Toyota Prius, the company's hybrid sedan sold only five vehicles in the last five months according to Society of Indian Automobile Manufacturers (SIAM) data from April to August 2012.
Apart from Mahindra Reva, other players have been unable to capture this segment too. General Motors-owned Chevrolet displayed its Beat electric car at the Auto Expo earlier this year. However, the company has shown no signs on its commercial launch. Similarly, Tata Motors is also expected to launch an electric car, though details of its launch are not available.
Experts believe that the common issues associated with electric cars including short charging cycles, limited battery capacity, limited driving range and lower speed has made customers shy away from the vehicle. Further, electric car also have high a price-tag attached to them, making it unattractive to buyers.
In August, M&M reported a 21.74 per cent increase in sales at 45,836 units for August against 37,684 units in the same month last year. The company's domestic sales stood at 42,826 units during the month against 35,756 units in August 2011.
In comparison, Tata Motors reported a 12 per cent increase in total sales at 71,826 units in August this year. The company's domestic sales of commercial and passenger vehicles for the month grew by 13 per cent to 67,453 units against 59,874 units in August last year. Tata Group chairman Ratan Tata in a recent Tata Motors AGM has expressed his concerns about Mahindra & Mahindra (M&M) overtaking Tata Motors in the car segment.