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Mahindra Electric Vehicle Targets US Market
Currently, there is an incentive of 00 on Mahindra electric vehicles offered by the US government. Anticipating a great deal of electric vehicle business in the US market, Mahindra had, in this May, made an acquisition of 52.2% stake from the Bangalore based Reva Electric Car co. The deal was made on equity purchase and a fresh equity infusion amounting Rs45 crore. The electric version vehicles will find place in Mahindra"s portfolio after the commercial launch in the next fiscal, it is learnt.
The company is aiming to expand its business, from its operations in India and Europe, to the major countries in another five years, he said. Reva"s electric cars are on the run in just two cities, Bangalore and London with the turn over of 1000 units making the net sale of 3700 units in all these nine years of operations. The recent visit of the US President Obama happened to be an occasion to focus the exploitation of the US technologies for Reva electric cars.
The company"s MD and Vice Chairman said that the need is to initiate the pilot operations before going in for full fledged operations in the US roads. This will be M&M"s third attempt to enter into the US market after the earlier two unsuccessful bids to launch the Scorpio pick up trucks, ending with failure on regulatory issues. M&M is making another attempt to do this before the end of the calendar year, despite facing a legal dispute against the US firm, Global Vehicles, which took over as the sole distributor for M&M trucks in the US. The US firm charged M&M over delay in the launch of trucks for which M&M has filed a dismiss notion in the local court.
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