Mahindra Reva slashes e2o price by Rs 1.77 lakh

Barely a fortnight after the launch of the launch of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) India scheme by the Ministry of Heavy Industries and Enterprises in collaboration with SIAM, Mahindra Reva has substantially prices of its e2o all-electric car.

The e2o’s pricing now starts at Rs 4.99 lakh (ex-showroom, Mumbai), down Rs 1.77 lakh over the previous Rs 6.76 lakh for the base T2 variant. The premium T2O Quick2Charge variant now costs Rs 5.38 lakh (ex-showroom, Mumbai), a reduction of Rs 1.74 lakh compared to the earlier Rs 7.12 lakh price-tag.

The price reduction, according to the company, will be over and above any other incentives already on offer. Currently, incentives on the green car are offered in Delhi and NCR, Mumbai, Hyderabad, Bangalore, Ahmedabad, Chennai, Kolkata, smart cities, and cities with a population over 10 lakh as notified by the Government.

This incentive under the FAME India scheme, however, does not extend to the battery pack as customers will still have to pay the ‘monthly energy fee’ of Rs 2,999 per month for the battery leasing scheme. This allows the customer to drive 50,000km (800km of usage per month) over 5 years thereby locking in the running cost for 5 years.

On February 18, Mahindra Reva Electric Vehicles had launched the ‘Goodbye fuel, hello electric’ scheme aimed at easy ownership of the e2o. It separates the initial acquisition cost of the e2o and the usage cost (in the form of the battery and its maintenance) to make the e2o more affordable. It also guarantees the performance of the battery as the ownership of the battery lies with Mahindra Reva.

Under the FAME scheme, the government of India has sanctioned Rs 795 crore for Phase 1 spanning fiscal years 2015-16 and 2016-17. The demand incentives that will be given to boost sales of hybrids and xEVs will be in the range of:

- Rs 1,800 to Rs 22,000 for scooters

- Rs 3,500 to Rs 29,000 for motorcycles

- Rs 3,300 to Rs 54,000 for CNG/diesel three-wheeler variants

- Rs 3,300 to Rs 61,000 for petrol-engined three-wheelers

- Rs 13,000 to Rs 124,000 for sub-4-metre four-wheelers

- Rs 11,000 to Rs 138,000 for four-wheelers above 4 metres long

- Rs 17,000 to Rs 187,000 for LCVs (CNG / diesel variants)

- Rs 34 lakh to Rs 66 lakh for buses (CNG variants)

- Rs 30 lakh to Rs 61 lakh for diesel-engined buses 

Also read: Mahindra Reva founder & CEO Chetan Maini on why a sustained policy vision is key to build an EV industry in India