The electric division of the Indian utility vehicle maker, Mahindra & Mahindra, Mahindra REVA hasn’t seen any significant demand of its electric vehicles in the Indian market. In fact, India is still not equipped in terms of full scale infrastructure to handle a fully fledged market of electric cars. But this is not the case in some foreign countries. Apparently Mahindra REVA also seems to have understood this thing and looking at expanding its operations in overseas countries. The expansion plans include setup of its first overseas assembly facility likely in Australia. Mahindra officials said that a decision to that effect will be taken by this year.
“We are looking at possibility to set up a local assembly unit in Victoria. A feasibility study is going on at present and it is expected to complete in the next six months. A final decision will be taken once the feasibility study is completed,” Chetan Maini, Chief, Strategy and Technology, Mahindra REVA, said.
Currently Mahindra REVA has formed an alliance with the Govt of Victoria, Australia to help them in carrying out a feasibility study of the demand for such vehicles in those markets. The feasibility study includes research and development, supply chain development and manufacturing development. Mahindra REVA currently has only one manufacturing facility at Bangalore in India and a second unit is coming up soon at the same location. However, Mahindra REVA is taking very careful steps for its overseas operations. Initially it will be exporting the vehicles to Australian countries to gauge the customer response depending on which the final call of setting up the plant would be taken.
The automotive arm of Mahindra is also planning to expand its assembly operations in Russia through the distributor of its South Korean subsidiary SsangYong in the next two years. Mr. Pawan Goenka said that currently talks are ongoing between the company and the disctibutors. Ssangyong already has an assembly of of semi-knocked down units in Russia and Mahindra wishes to go via CKD route in cae Mahindra products are assembled. He also added that the operations could take roughly two years to commence.
