The Mahindra Reva e2o that was introduced here nearly a year ago, has received a price cut by about Rs 1.7 lakh. The dip in price is the result of a scheme the company has introduced according to which, the car's battery is rented out by the customer. 

 

“We are bringing down the cost of acquisition while guaranteeing customers battery performance coupled with inflation-proof running costs. We will own the battery, all that the customer needs to do is pay a monthly fee,” Mahindra Reva Electric Vehicles CEO, Chetan Maini, said.

 

As part of the scheme, the buyer has to pay an ‘energy fee’ starting from Rs 2,599 per month which will allow the user to drive 50,000km (800km of usage per month) over a five-year period. Mahindra Reva will also provide 24x7 assistance and guarantee a courtesy car when the battery is undergoing repairs. With the new scheme, the acquisition cost comes down on an average by about Rs 1.7 lakh in cities including Bangalore, Delhi and Mumbai, where it is currently available.

 

With the new scheme, the base variant of the e2o in New Delhi will cost Rs 4.99 lakh as against Rs 6.5 lakh earlier (all prices, ex-showroom). 

 

This initiative, the manufacturer hopes, would provide a much needed fillip to the Mahindra Reva e2o's sales figures which stand at a dismal less than 500 units since its debut in March 2013.