GM to make its own electric car

The acquisition of Reva electric car company by Mahindra and Mahindra (M&M) might mean the end of the tie up between General Motors India and Reva to produce Electric Spark. GM India vice-president P Balendran told a news channel, “We may not continue the Spark Electric programme with Reva in the light of this development and will pursue our own electric vehicle programme. An announcement to this effect will be issued soon.”

There was a tie up between GM India and Reva to develop an electric version of GM’s popular hatchback Spark. The two companies had entered into a technical tie-up last year and the Chevrolet Spark Electric was expected this year end.

But now M&M acquired 55.2 per cent stake in Reva to make a mark in the upcoming electric car segment. Pawan Goenka, president for automotive and farm equipment sector hinted that M&M had no problems if GM wanted to continue the Spark program.

There was a lot of speculation regarding the M&M deal and everything had been hushed up. However, the deal might just pushed back the plans of the E-spark that was being eagerly awaited. The E-Spark was supposed to be the country’s first four-door electric hatch. Also September 2009, GM India and Reva had laid out plans to come up with a electric car on Spark’s platform for both domestic and overseas markets. The move would have been beneficial for the Indian electric car market.

The Electric Spark was being expected in various battery options and price points with almost 90 per cent local components. It is for everyone to see what course does the GM’s Spark Electric takes and what happens to the plans made by the two companies of expanding the electric model to GM India's other cars.