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INDIA BUSINESS WORLD - October 1st - October 15th - 2008
ARGENTUM-REVA TIEUP TO ROLL OUT E-VEHICLE
BVR Subbu’s Argentum Motors has tied up with Bangalore-based Reva to make an indigenous electric vehicle. It’s expected that the vehicle will later be sold by Argentum badged as Heuliez, the French company which it’s in the process of acquiring for around € 25 million. The evehicle will be part of Heuliez’s restructuring plan and will only be sold in Europe.
Mr Subbu, director, Argentum Motors, said: “We are working with the Mainis of Reva to figure out our next step. For now our co-operation is exploratory. We will see how the market reacts and then take it forward. We are both small companies with specific capabilities and the e-vehicle market allows niche players to survive and thrive.”
Currently codenamed EV-1, the vehicle may later be badged as Pondicherry for the French market. Currently, the alliance involves Argentum focussing on rolling chassis while Reva concentrates on electricals and electronics Heuliez on integration and marketing in France and selects European markets. Markets where Reva has a presence will see the vehicle badged and sold as a Reva product.
Argentum and Reva are also talking about extending their cooperation beyond this concept vehicle. “We are talking about this as a precursor for a broader cooperation,” Mr Subbu said. Both Reva and Argentum will make components and the CKD kits will be exported to France and assembled there. Work is on to productionise EV-1 in 6-8 months.
Beyond the first concept, the two companies are also talking about a wider range of electric vehicles. At the drawing board stage is a bigger vehicle—3.7 metre length compared to the EV-1’s 3.5 metre—as well as a four-seater car. The EV-1 has been conceptualised as a neighbourhood runabout, a small supply vehicle for shops around the corner. But for bigger clients like French Post, the alliance will crank out bigger speciality vehicles. As for the car, the two companies are working on technicalities.
The entire range will be lithium ion battery powered and the investment plan will be finalised once the production schedule becomes clearer. Electric vehicles are the latest craze in the global auto industry with all the biggest names announcing product plans. Tata Motors has entered an arrangement with Chrysler to develop an electric version of the Ace light truck for sale in North America. Chrysler’s Global Electric Motorcars section will import the fully-built vehicles for sale in America. And Bajaj and Renault-Nissan’s ultra low cost alliance will reportedly include e-vehicles as well. The steep rise in gasoline prices has upped interest in electric and hybrid vehicles globally.
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