REVA Electric Car Company(RECC)plans to finalize $15-million private equity funding for the expansion purpose by the first quarter of 2004-05.The company is currently in talks with International Finance Corporation (IFC)and an international private equity fund for mobilising finances.

RECC, which is at present focusing on the export market of its flagship product REVA, will look at introducing new models in the market by mid next year, once the funding is through.

Speaking to FE at the sidelines of a press conference , RECC managing director Chetan Maini said, " We were expecting to be financed by at least two funds and have plans to speak to a couple of other funds too."

International funds understand the potential of the electric vehicles and have a better knowledge of the global markets, he said , explaining the reason for looking at global financing agencies.

Meanwhile ,RECC on Tuesday announced that it has received the European Economic Community(ECC) certificate for exporting its vehicles to the European market. This will mark the beginning of exports of REVA ,starting with the UK. The car which has been rechristened G-Wiz for the global markets , is undergoing test marketing in countries like UK, Malta , Japan, the US, Switzerland and Norway.

The company has started the dispatch of the first shipment of G-Wiz, which has won an order of 500 cars to the UK through their distribution partners - Going Green. In the European market, REVA will be sold at a price which is 30 to 40 percent higher compared to the fully loaded model sold in India at a price of Rs.3.22 lakhs ,Mr.Maini said.

There is an increase preference for small cars. Interestingly , around 34% of new car sales in Europe in 2002 is of small cars. This trend along with price advantages and the increased environment consciousness among buyers will boast REVA's growth in the export market, he added. RECC has sold around 550 cars in India. The company is selling round 50 cars per month currently and is expecting to increase it to 300 per month by next year.