Mahindra Reva E2O EMI of Rs 12802 takes running cost to Rs 9.18 lakh

Mahindra Reva e2o EMI Rs.12, 802 takes up the cost of vehicle to Rs.9.18 lakhs.

The attractive on road price of Rs.5.96 lakhs is seeming like a sweet dream as the EMI of Rs.12, 802 is making up the final Mahindra Reva price Rs.9.18 lakhs. Mahindra Reva e20 was launched by the company in New Delhi last month. The initial price of Rs.5.96 lakhs was kept only for New Delhi for rest states the price differed from Rs.7.5 lakhs to Rs.8 lakhs. The only reason for low prices in New Delhi is the subsidy that the administration of the state is providing in order to encourage alternative fuel technologies. 
In Chandigarh with the launch of vehicle, Mahindra introduced a new EMI plan. This scheme allows the buyer to buy the vehicle on a down payment of Rs.1.5 lakhs and thereafter pay an EMI of Rs.12, 805 for next five years. This amount adds up to a total of Rs.9.18 lakhs on the basic model only. The final amount for the higher end models goes much higher in this respect. This price plan is proving this vehicle much more costly than was claimed by its maker, the factor of cost-effectiveness seems disappearing from its profile. 
It also makes this vehicle a much more costly option as compared to diesel and petrol A segment cars. Dr. Goenka commented on the situation that the initial days bookings of Rev e2o have been quite discouraging. Even the target of 300-400 units per month is seeming distant now. They denied giving any account of the number of bookings that were made initially.
At the official launch of this company, Mahindra Reva spoke of introducing this model in Europe. The Operations Chief, R Chandramouli, confirmed that they will be shortly exporting this car to Europe. The home grown major is working with European Union regulatory framework in order to begin the export process of this car.
Short Summary: Mahindra Reva e2o is proving to be a white elephant for Mahindra. The initial sales record of the car have been highly discouraging for the team and the maker themselves. One of the main reasons for this decline is the high cost of this car. Mahindra kept the initial price range of this car Rs.7.5 – Rs.8 lakhs initially. But due to availability of other hatchbacks at a competitive price Mahindra is facing a hard time in finding buyers for it in the much price conscious Indian car market. That is one of the main reasons, why the company has decided to export this to European markets where they expect to gain some buyers as electric vehicles have been making a good space there.