What is the potential of the market segment in which Reva operates?
Its niche, but the potential is large. Our target is to be chosen as the second car in a household. Last year 40% or 40,000 cars of the total cars sold in India were second cars. With the second car, the consumer does not need to ride 500 km a day or carry huge luggage. About 95% of the consumers drive less than 40 km per day. For this, the consumer will consider cars that have features like easy drivability, ease of parking and economy. For this kind of usage, Reva can save around Rs 4,000-Rs 5,000 a month, or around Rs 2 lakh over a period of five years. Plus there are no maintenance charges. So when you look at the market, there is an expanding second car segment that was not there 10 years ago. Last year, the Government announced a 29.5% discount on the purchase of electrical vehicles. Has the company increased its production after that? The discount of 29.5% is only for Delhi. The Delhi government has basically created an ambient air-quality fund, where it refunds 12.5% VAT, 2% ro
