Electric Cars in India

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Lindsey G. Silver
Dr. Keith Dickinson
BA 3374 International Marketing
April 19, 2012 The electric car market in India offers only one product, Mahindra’s Reva. This is due to the lack of infrastructure support and the preference for cheaper cars. These operate on a regular charge from various electrical outlets instead of expensive foreign oil. The drawback is that the cars are an expensive buy. However, they are efficient and use cleaner energy. Also, the Indian government gives tax rebates for such purchases. The rising fuel prices in the country will create awareness of Electric Vehicle technology. As Indian oil companies increase fuel prices, car buyers could be facing some budget restrictions. Electric Vehicle (EV) technology may be the solution to beat the fuel price hike (Kannan, 2012, p. 1). Although consumers have begun to change to hybrid and diesel fuel, the cost is still greater than these options. The EV does not offer a variety of choices in the country and consumers are hesitant to change from gas to electric. The biggest advantage lies on its fuel economy. As the price of oil increases, this solution could improve lifestyles and a healthier environment. In addition to the greater cost, the Reva does not offer long distance capabilities. It runs about 80km per electricity charge because the lithium ion batteries hold a limited charge and have limited distance capabilities (Joshi, 2012, p. 1). Sophan Joshi, in his article, “Electric cars still waiting for a spark of innovation,” states “But battery technology is stuck on weight. The lithium-ion batteries used right now are cumbersome and don’t store enough power. So much so that the battery is about one-third of an electric vehicle’s weight” (p. 2). As a result, driving for extended periods is unreasonable. Furthermore,