Mahindra Reva cuts prices of e2o

Mahindra Reva has cut the price of its e2o, the electric vehicle it introduced nearly a year ago, by about Rs 1,70,000.  The price cut is the result of a scheme the company has introduced in which a consumer rents out the battery. “We are bringing down the cost of acquisition while guaranteeing customers battery performance coupled with inflation-proof running costs. We will own the battery, all that the customer needs to do is pay a monthly fee,” Mahindra Reva Electric Vehicles CEO Chetan Maini said.

As part of the scheme, the buyer has to do is pay an ‘energy fee’ starting from Rs 2,599 per month which will allow the user to drive 50,000 km (800 km of usage per month) over a five-year period. Mahindra Reva will also provide 24x7 assistance and guarantee a courtesy car when the battery is undergoing repairs. With the new scheme, the acquisition cost comes down on an average by about Rs 1.7 lakh in cities, including Bangalore, Delhi and Mumbai where it is currently available.

With the new scheme, the base variant of the e2o in New Delhi will cost Rs 4,99,000 as against Rs 6,50,000 earlier. Under 500 units of the e2o have been sold since its debut in March 2013.