Bangalore-based electric car maker, Reva Electric Car Company (RECC) has plans to have a factory in New York to build the electric cars for North America. If it works out RECC may become India’s first auto company to make its vehicles in the US, by assembling its next generation NXR smart car in NY. 

The Reva Electric Car Co. will work with Bannon Automotive, a new electric car company in Freeport, N.Y., to assemble a three-door plug-in hatchback, the NXR, at a site in the Syracuse area. Bannon Automotive has been negotiating with India's Reva for months now, and the licensing deal that's been tentatively brokered is pending the full approval of the Indian firm's entire board.

According to sources, the proposed plant will receive $11.6 million (approx Rs 54.52 crore) in funding and incentives from New York State, with the companies putting in $26.5 million (approx Rs 124.55 crore). Besides, both the companies are seeking $52 million (approx Rs 244.4 crore) in loans and loan guarantees from the federal government.

“We are exploring all options and would be working in many international markets to export and manufacture our cars. Talks are on to license the technology that can open new revenue stream for the company,” says a senior Reva executive, who chose anonymity. More details were not revealed by him. 

The plant is expected to be operating next year, with an initial work force of 100 that will grow to 250 workers over three years.

Reva has not tied-up with General Motors, once world’s largest car maker despite of developing electric technology for General Motors India for its small car Chevrolet Spark Electra.

The NXR can reach speeds of 65 mph (105 kph) with a range of 100 miles (160 kilometers) on a single charge of its lithium-ion battery pack. Reva has also developed Lithium Polymer battery and the fuel cell technology but they would be launched at a later stage. 

Both these models NXR and NXG were launched in September at the Frankfurt Auto Show, which will hit the international market from next year. Reva will send the fully built kits to the US market which are expected to be assembled by Bannon at a location which is yet to be decided.

Final assembly is expected to be carried out in the Syracuse-area factory under a recently negotiated agreement between Bannon and Reva. Reva has increased its production here to 30,000 cars per year with an investment of Rs 30 crore. The company has also made entry across Asia and Europe.

Related News:
Reva NXR and Reva NXG electric cars coming soon!
GM & Reva to produce electric vehicles for Indian market
GM joins hands with Reva for e-cars in India
New Era of Electric cars in Automakers

Related Books:
Green Cars: Earth-Friendly Electric Vehicles
The Keys to the Car: Electric and Hydrogen Vehicles for the 21st Century
Classic British Car Electrical Systems

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Posted by Naresh Koshti on 24 October, 2009 3:10:13 PM IST #