Indian EV Maker Reva Makes Bid for World Dominance (Starting With Iceland)

One of the oddest facts about electric vehicles (EVs) in 2009 is that the Indian company Reva is the world’s leader, with more than 3,000 sales. Although the initial G-Wiz model is decidedly flimsy—Britain’s Top Gear show matched it up against a table, and the Reva lost—the Reva has the virtue of being cheap, just $9,000 to $11,000. They’re popular in Britain, where more than 1,000 have been sold, because they can evade London’s £8 ($14.80) congestion charge, paid by suburban commuters.

Cheap is definitely a viable marketing strategy. That other Indian car, the $2,500 Tata Nano, basically follows the same formula—and has gotten the world so intrigued that Nissan is now working on a competitor for the Indian market with Bajaj Auto.

I drove a Reva G-Wiz in Iceland and found it remarkably poor. But I think the company is determined to get things right with the G-Wiz’s successor, the NXR, which not only looks much better but has much improved vital statistics. The four-seat, three-door hatchback NXR has a 100-mile range (like the Nissan Leaf) and is said to fast-recharge in 90 minutes. The lithium-ion battery version will sell for $23,000 in Europe (but without the batteries).

An even more intriguing Reva, the two-seat targa-top NXG (like a squashed Honda Civic, but with panache), is planned for 2011. It was penned by Dilip Chabria of DC Design, who helped out on such cars as the Porsche Cayenne and Aston Martin Vanquish.

While in Iceland for the Driving Sustainability ’09 conference, I met the entrepreneur Gisli Gislason, chairman of Northern Lights Energy, who wants to build the world’s first national electric car network. He was leaving on a buying trip that eventually included a major order for the forthcoming Tesla Model S sedan—and an agreement to market the new Reva NXR (and the forthcoming NXG) in Iceland. He says that the island, which uses mostly renewable geothermal and hydropower, “is perfect location for zero-emission electric vehicles.”

Gislason’s plan also includes converting some of the island’s current cars to electric, and Northern Lights Energy is working with Finnish and Danish companies on that project, he said. The goal is to reduce the 680,000 tons of carbon dioxide produced annually by the country’s private transportation fleet.

In September, Reva announced a joint venture with General Motors’ Indian division to produce the powertrain and energy management systems for the Chevrolet Spark electric car, which is intended for overseas markets. The company is building a green-themed assembly plant with 30,000 capacity in India, and Gislason says it is also considering building a plant in Iceland for European markets.

Even more intriguing, Reva said in October that it will work with Long Island-based Bannon Automotive to build the NXR in a 150,000-square-foot $26.5 million plant in the Syracuse, New York area. The state is providing $3 million in grants through the Empire State Development Corporation (as well as $3.76 million in tax incentives and breaks).

The plant is supposed to be up and running with 100 workers in 2010, though few details of the deal are available. Reva seems determined to become an international player—in India, the U.S., Europe and the little island of Iceland.