US Version of Mahindra-Reva NXR Electric Car Spied; 2011 Launch Likely

Our friends at Indian Autos Blog recently posted photos showing a left-hand drive version of Mahindra’s all-electric Reva NXR seen testing in India. The NXR shown could likely be a US market test mule.

Reva Electric Car Company, recently acquired by Mahindra & Mahindra Ltd (and renamed Mahindra Reva Electric Vehicle Company), has been working with US-based Bannon Automotive to establish manufacturing and sales of the NXR and other Reva models on US soil in the very near future.

Indian Autos Blog also reports that the highway speed capable Reva NXR (replacing the current Reva City model in India) will be available to Indian customers in the fourth quarter of 2011. Previous reports have suggested that the all-electric NXR model could be available in other markets (including the US) much sooner than that.

“A lot of work is going on at the moment and the launch of the new Reva NXR and NXG should be by Q4 of 2011.” – Pawan Goenka, Chairman, Mahindra Reva Electric Vehicle Company

A former plastics factory in Lysander, New York (Syracuse area) has been selected as the site to assemble complete knock down (CKD) kits of Reva car models. Each CKD will include all components necessary to build a complete car. CKD kits will be shipped from India to the Central New York operation, which will fully assemble and deliver completed cars to dealers around the country.

Although there have been no recent reports on the status of the Lysander manufacturing facility, Bannon Automotive has been working with politicians at the state and federal levels to obtain all necessary funding to break ground. It is anticipated that work on the facility will begin this fall, with manufacturing to commence sometime in 2011.

Source: India Autos Blog (click hyperlinks for specific articles), Syracuse.com
Photos: IndiaAutosBlog.com, RevaCars.com

Mahindra Speaks: Joint Ventures, Acquisitions, and US Vehicles

“Unfortunately, I can’t talk too much about it because it’s a legal situation. But it’s unfortunate, and we have to be honest about that. It’s not something we would have liked to happen, it’s something we are dealing with and hope to overcome it. All we are saying is that we remain committed to entering the market, but clearly this is an obstacle.” Anand Mahindra, Vice Chairman, Managing Director, Mahindra & Mahindra; regarding the lawsuit filed against Mahindra & Mahindra by US Mahindra vehicle importer, Global Vehicles USA


India’s Economic Times interviewed Anand Mahindra to get his perspective on Mahindra & Mahindra’s many recent partnerships and acquisitions in the technology, automotive, and aerospace industries.

Mahindra & Mahindra has recently acquired Australian aircraft manufacturer Gippsland Aeronautics, with the intention of building fixed-wing aircraft in India within the next three years. Mahindra has also taken over majority stake in Indian-American electric car company, Reva. Most recently, Mahindra has been rumored to be communicating with Proton/Lotus about a partnership, and they are currently completing due diligence on the potential acquisition of failing South Korean auto manufacturer, Ssangyong.

Mahindra clearly has high expectations for M&M and India to become global economic and technology powerhouses. In the interview, Mahindra emphasizes that there is method to their JV and acquisition madness:

“We will do joint ventures with other elements of the automotive industry, whether it’s trucks, vans two wheelers, everything else. We are open to alliances because what they allow us is to mimic the benefits of a large automotive company. And when you add our tractors into this then we are a company which is already over half million vehicles without even counting two wheelers which are growing, and not even counting trucks. Nobody can actually say that we have drawbacks of a niche player. We have the volumes to build scale where scale is needed, procurement, R&D etc.” – Anand Mahindra

While Mahindra is very clear about on-road vehicle and tractor market strategies, it is still unclear when their line of 30mpg, all-diesel, pickup trucks and SUVs will arrive in the United States.

Anand Mahindra’s comments certainly seem to suggest that the lawsuit filed by Global Vehicles could delay the US introduction of these rugged, India-made pickups beyond the currently expected December 2010 launch date. Further delays would be ironic considering that the foundation of the lawsuit accuses Mahindra of purposely delaying their entry into the United States. The future of the Mahindra TR20 and TR40 pickups is still unknown.

To read the entire interview, click here: None of our M&As are done for ego and size: Anand Mahindra (popup warning)

Mahindra Buys Majority Stake in Reva Electric Car

As Mahindra Planet reported in April, Mahindra has been rumored to be in negotiations with Indian/American electric vehicle manufacturer, Reva Electric Car Co. Ltd., to take over majority stake in the company. Reports this morning confirm that Mahindra now owns 55.2% of Reva. The new company will be renamed Mahindra Reva Electric Vehicle Co.


Reva, through its US importer Bannon Automotive, has been working for the past several months to establish an electric car manufacturing site in the Syracuse, New York area. Plans for the Central New York manufacturing facility have been steadily moving forward since recently acquiring federal, state, and local grants for the project.

Mahindra plans to initially invest USD $9.5 million into the new Reva venture.

"Our association with Reva will only help us further expand our green footprint both in India and overseas." Anand Mahindra, Vice Chairman, Managing Director, Mahindra Group (@AnandMahindra on Twitter)

Mahindra & Mahindra wants to be seen as a global leader in green automotive technology. Mahindra will be introducing the first Indian made pickup trucks (the Mahindra TR20 and TR40) to the United States in December of this year. The Mahindra pickups will only be available with clean diesel engines and are anticipated to attain 30mpg while prices start at USD $22,000.

The first Mahindra pickups sold in the US will be entirely manufactured in India. However, Mahindra has been actively looking for a suitable US facility to assemble pickups and other vehicles in order to avoid the 25% “chicken tax” imposed on foreign made vehicles imported to the United States.

The Mahindra Reva facility in Central New York could provide Mahindra with some positive insight into the manufacturing prowess, technology community, and skilled workforce that the Syracuse area offers. Maybe Mahindra will even consider building clean technology pickups and SUVs in CNY as well.

Source: AP via Syracuse.com