Reva To Buyback Car From Unhappy Owners

With competition hotting up, car makers are willing to dole out anything to make you buy their models. But this one from the makers of India's first electric car, Reva, will take some beating.

A company of the Bangalore-based Maini Group, Reva Electric Car Company has offered to buy back their cars in case their customers are not satisfied with their performance.

They will get back their money minus around Rs 43,000 which comprises taxes and insurance. On road, the car comes with a price tag of around Rs 2.5 lakh.

"It is a new concept and the scheme is for a limited period. We want to promote electric cars as much as possible. What is heartening is that not a single customer has brought back his car to us," Maini Group chairman Sudarshan Maini said. Reva has sold 100 cars so far.

 

There are other schemes too to promote the electric car. Reva is in talks with ICICI for leasing out these cars at a nominal rate while the car company will take care of all repairs. At a pre-determined monthly lease amount, a customer or a company can own the car and after three years will have the option to retain the car or return it to the company.

Maini said even the insurance premium will be extremely less and in case the car breaks down or is involved in an accident, Reva will send a replacement.

"We will ask no questions. They will get to drive a new car till the earlier one is repaired and the insurance claims are settled," Maini said. He said the company can also customise the cars to suit individual's requirement.

In Karnataka, Reva has already received exemption from road and sales tax and for the first year it attracts 100 per cent depreciation. The manufacturers have asked the government further incentives like exemption from import duty and excise and soft loan for customers who want to buy the electric car. It has also asked the government to reduce the minimum required age for drivers to 16 years. "In developed countries, the government doles out money for those who buy electric cars," Maini said.

Reva is also planning to sell these cars to tourist operators who can use them as taxis. "At 40 paise per km, it is the cheapest car to drive around. We expect the demand for these cars to shoot up because of these incentives," Maini said.

Maini said Reva expects to sell between 400 cars to 500 cars evey month in another two years which includes 50 per cent through exports. It has a tie up with AEVH which has a 35 per cent stake in Reva Electric Car Company. Reva has already invested around Rs 80 crore in the venture.

The Reva is a rugged two-door hatchback which can seat two adults and two children and is a gear-less vehicle.

It has a running cost of 40 paise per km and its power pack battery has a life of 40,000 km which should last 3 years to 4 years with city driving. The car gives 80 km on a single drive and can be charged anywhere using only a 220 volt, 15 amp power source. For every 80 km of driving, the battery needs to be charged only for eight hours.

The car has only 1,100 components and its energy management system adopts proprietery technology while its motor controller has been developed in collaboration with Curtis, leaders in motor controllers for electric vehicle applications.