Mahindra and Reva became friends and on the same day we see GM India deciding to leave Reva. Possessiveness ah? The confirmed news of Mahindra buying majority stake in Reva was made public on Wednesday and General Motors couldn’t stand it. Speculation says that GM may pull out of its collaboration with Reva Electric Car Co. Last year, GM India had tied the knot with Reva to develop an electric version of its popular small car, the Spark, which was scheduled to hit the roads sometime this year.
“We may not continue the Spark EV programme with Reva in the light of this development and will pursue our own electric vehicle programme. An announcement to this effect will be issued soon,” GM India vice-president P Balendran said. India’s SUV and tractor leader, Mahindra and the global leader in low-cost electric-vehicle production, Reva have got together with the idea of sharing expertise in their respective fields. Hopefully, they’ll be very successful. Mahindra & Mahindra acquired 55.2 per cent stake in Reva. While celebrations are on one side, the other side (GM) has gone green with envy.
GM will produce its own EVs. What about the electric Spark? M&M is quite open and has no problem with GM continuing the project. No financial details were revealed. But, Reva’s Chief Financial Officer Rajesh Ramaiah said that some exchange of money had taken place between the two companies. GM has already informed M&M and Reva about its decision to look at an alternative option for the electric Spark programme. Sad but true, isn’t it?
After tying the knot in September last year, GM India and Reva had announced that the two were looking at both India and overseas markets for the proposed electric small car based on the platform of the Spark and planned to turn the country into a hub for electric vehicles.
There were great plans then and everything is going to change now. The two had planned to roll out the electric Spark in a series of battery options and price points. The proposed version of the car was planned to have up to 90 per cent local components. Both GM and Reva had at that time said that they were open to the option of expanding the electric model to GM India’s other cars too.
Mahindra gained 0.3 per cent to 517.35 rupees in Mumbai the day before yesterday. The stock has fallen 4.3 per cent this year. The car maker’s Xylo and Scorpio models compete with GM’s Tavera utility vehicle and CaptivaSUVs in India. Reva is offering its cars in 24 countries and has sold more than 3,500 vehicles worldwide. The company intends to begin selling the lithium-ion- powered Reva NXR as early as October. The three-door, four-seat hatchback has a top speed of 104 kmph and a range of 160 kilometers per charge. Isn’t that great?
But, whose fault is it now? Who’s responsible for the recent breakup? Does the question of Reva’s fidelity pop in, or, is GM over-reacting? It’s hard to decide. Let’s just hope that all goes well with all three; GM, Reva and Mahindra.










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