GM India will source electric vehicle technology from Reva to roll out electric variants of its Chevrolet Spark small car in India and select overseas markets
The two companies will enter into a 50:50 joint venture (JV), which is currently awaiting the green signal from GM’s Detroit headquarters. If the JV goes through, it will be GM’s first deal since it filed for Chapter 11 bankruptcy.
The Reva tie-up is crucial for General Motors because it will offer the cash-strapped Detroit major the chance to source the technology of the future at more competitive rates.
The new alliance is another indicator of how much the Indian market means to the Chevy (Chevrolet) brand and the significance of electric vehicles in GM’s growth plans. GM has already indicated that it will introduce the Volt electric vehicle in India in a completely-imported form.
GM has already indicated that e-vehicles are its chosen technology of the future. And it’s not the only one. Ford and Chrysler as well as Japanese auto majors Toyota, Nissan and Honda are all queuing up.
Reva has just announced that it will unveil two new models at the upcoming 63rd Frankfurt International Motor Show. The Reva NXR (next revolution), a sporty two-seater with a targa roof, will go into production in 2011 and the REVA NXG (next generation) will be available from next year.
