Does the Reva E2O need better government support and incentives to succeed?
When electric vehicles in India were still in their infancy, government policies were still in the making, and the Reva E2O was launched. Whereas today EVs are provided with tax benefits, subsidies and infrastructure support, the E2O was launched in a market bereft of these incentives. With more government support - purchase subsidies, tax breaks, mandated charging infrastructure - many argue that the E2O could have made it past its high price and limited range. Some think that the technology was not yet mature enough even with policy support. What impact could robust government incentives have had to the E2O's market performance? Would other limitations of the vehicle have been overcome by this?
Absolutely! Take a look at how EVs are booming now with FAME II subsidies. The E2O could have been way more affordable, if it had gotten the same support. Reva was not supported by the government to play the ball.
Government support would have had its place, but it could not have solved all of the problems. Charging infrastructure was non existent, and the range was still too low. Fundamental tech limitations can’t be fixed with any amount of subsidies.
Strong government support could have created a snowball effect, I think. More sales would mean lower prices, which would stimulate more charging stations, and so reduce range anxiety. It would have started the EV revolution years ago.
It's not just about money. Mandating charging stations in public places or offering special parking for EVs would have been the government’s job. It’s not just about reducing the price, but also about creating an ecosystem.
I don't even think it would have worked with support. The Indians are value conscious and the E2O was too compromised compared to petrol cars in the same price bracket. What it needed was better tech, not just a lower price.
Perhaps government support would have helped it survive longer and given Mahindra time to improve the technology. That was all research and development that went to waste with the sudden demise of the E2O.
The fact is, government support alone won’t sell a product that no one wants to buy. They made desirable cars, and Tesla succeeded – without initial government support. Regardless of subsidy, the E2O needed to be more desirable.
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Discussions and Questions Does The Reva E2o Need Better Government Support And Incentives To Succeed
Does the Reva E2O need better government support and incentives to succeed?
31 December 2024 10:36
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