Reva Electric Cars – Making Strides In The Electric Vehicle Market

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Reva Electric Cars – Making Strides In The Electric Vehicle Market

To enter the relatively immature market of electric cars, the Reva electric car company was initially a joint venture between Maini Group of India and group of investors of California.

This was a sort of gambling, the company has not reported any profits so far, because all the income is being utilized in the research and development. There has been lot of changes in the ownership and shareholding pattern in the recent past before the Reva electric vehicles hit the market.

Mahindra and Mahindra of India has acquired major shares of Reva car company 2010, which is 55.2%. Such changes gave a chance to Californian investors to bail out at the early stage even though the value of the company is around USD 100 million; the investors left the company with more than what they had already invested. The exact terms of transactions were never made public; hence the exact details are still unknown.

Mahindra and Mahindra has multi dollar business and being financially sound was able to make significant investment in the Reva Electric Car Company. Even though there were some issues with the original partnership which were renegotiated, the company no doubt has a bright future.

The big question is why Reva is so successful, the answer is simple like many small electric vehicle manufacturers, Reva has made its place in the growing electric car market where big players hesitated in investing, the result is today Reva has shown good growth with popular models like Reva I, Reva NXR, Reva NXG and in addition many other models are being introduced in near future.

Earlier it was very easy to identify electric cars from a distance, but today companies like Reva and Tesla Motors has totally revolutionized the electric car market. It is very essential to investment large amount in research and development; this is required to develop the designs which ultimately become quite popular with the masses.

Though there has been a significant growth in the electric car market in the last decade but it requires governments to encourage the developments of such cars which being environment friendly and reduces the toxic emissions. This toxic emission has contributed largely to the destruction of natural resources and added to the air pollution.

Some of the governments have significantly encouraged such ventures by giving various tax incentives to the manufacturers and the public to push the sales of these cars. Such a step will encourage people to use these cars and also contribute to the environment.

The conclusion is that Reva cars have very good reputation in the electric car market and with the companies like Mahindra and Mahindra taking interest in such ventures is sure to boost the market. Mahindra and Mahindra are leaders in automobile technology and have many designed vehicles to their credit.

Such step has made Reva quite popular world over and it is believed that the future of Reva Car Company is quite bright. The future of electric cars in the world is quite promising; more automobile companies should start looking for options in the electric vehicle market and start investing.

Involving many automobile companies will bring more electric cars on the roads and this will help the governments also to save the precious foreign exchange which they have to spend in importing oil from various countries.

By | 2012-08-03T09:01:22+00:00 December 21st, 2011|EV News|0 Comments

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