BackMahindra Reva takes a hit from rupee slide
Weaker rupee has made imports of critical parts expensive, pushing up manufacturing cost by `40,000 per unit
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New Delhi: Mahindra Reva Electric Vehicles Pvt. Ltd has been hit by the depreciating rupee as some of the critical parts of its electric cars, including computer chips and batteries, are imported, said Chetan Maini, chief of strategy and technology.
In order to offset the impact of the weakening rupee, Mahindra Reva is intensifying focus on newer export destinations, which include neighbouring countries. It has already started exporting to Nepal and plans to sell in Europe by the middle of 2014, he said.
Mahindra Reva launched the E2O—the company’s first model after Mahindra bought Reva in May 2010. Maini said the company has sold a few hundred units of the car since its launch. “We had expected it to be much better," Maini said. He expects the electric vehicle will get the requisite push with government intervention.
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