| REVA Electric Car Company has secured
a $2,600 subsidy per car from the government of Japan. Following
this, the company is demonstrating its electric variants in select
cities of Japan and hopes to ship out cars to Japan in the next
two months. This type of subsidy is similar to the one obtained
from the UK government. In UK the REVA has firm orders for
the supply of 500 cars, the subsidy offered to customers stands
at 1,000 pound sterling.
Chetan Kumaar Maini, deputy chairman and CTO Reva Electric
Car Company said, "In the short term export markets will
be crucial. But in the longer run the brand image gained from overseas
exports will hold it in good stead in the changing Indian market."
He added that the subsidy gained from Japan is apart from the tax
concessions for non-polluting variants.
The foray into Japan will test the REVA, as Japan did dabble with
electric variants before giving up because of high prices.
The company has already appointed a distributor who has a dealer
base of around 35 across Japan.
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To start with, Reva will be offered in selected
cities and based on the response extended to other areas. Chetan
Maini said that, to in· crease capacity utilisation, orders
from overseas market will matter. REVA has a 6,000 car annual capacity.
Besides a few hundred units exported to UK, the company has put
on Indian roads under 900 vehicles since its inception.
Apart from interesting the general crowd in Japan, the company expects
to benefit from the government regulation. The regulation mandates
10 per cent of all government vehicles should be electric variant
by 2005.
The success in Japan will boost the brand image of REVA globally.
Added to it, the company is working out a branding/promotional
strategy, which it expects to unveil next year.
Also market acceptance will assist the company access much needed
global funding.
The company for quite some time now has been negotiating a $15 million
private equity funding. Chetan Maini hopes to conclude this within
the next couple of months.
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