Mahindra Reva Electric Vehicle, the electric car making arm of the Indian carmaker Mahindra & Mahindra has put on hold its plans to set up an assembly plant in Australia. The carmaker has taken the decision with the intent of increasing focus on its sales in India as well as on its export markets.
The assembly unit in Australia would have been the first oversees assembly facility of the carmaker. In addition to the plans to set up the assembly plant, the automaker has also inked an agreement with the government of Victoria (Australia) for its feasibility study and research for supply chain development and manufacturing of clean technology vehicles.
Commenting about the decision to put the assembly plant plans on hold, Mr. Chetan Maini CEO Mahindra Reva stated that the carmaker wants to focus on the Indian market and establish a large volume platform in India before graduating to such plans.
Mr. Maini stated that the carmaker is still open to setting up assembly plants in foreign markets if the opportunity is attractive enough.
Mahindra Reva currently has a facility in Bangalore which is capable of rolling out 30,000 units annually. However, the Indian car market is witnessing a low demand for electric cars, brought about the lack of government subsidy for electric cars.
