The Central Government’s decision to raise the price of oil for the second time, will most likely result in curbing the demand for oil and also other ramifications in the automobile industry.
Mr.Chetan Maini, chief technology officer and deputy chairman, Reva Electric Car Company said, ‘ With every dollar increase in crude prices our country loses Rs 3,000 crore and the situation will only get worse as analysts predict that oil prices will hit the $ 200 mark per barrel.’
The situation can translate into big business for the electric car segment.The company currently has 2,500 electric cars on road globally, half of them, in
Reva Electric car company plan to set up dealerships across the country as they have achieved a level of success in the Bangalore market.Selling at an mad price of Rs 3.5 lakh with just 40 % maintenance costs compared to a regular car and at a cost of 40 ps per km electric cars are the most attractive in-city car option today.
Mr.Maini of Reva Car company said, ‘with Indian households buying around 1,50,000 second cars, every year, we have tremendous market potential here.’
Mr.Navin Munjal, MD of Hero Electric Scooters said, ‘Enquiries for its range of scooters had shot up sharply for the past few days. It could be the result of the oil price hike.Our vehicles run at a cost of 10 p per km’
Above all the main advantage of vehicles running by electric power is that they do not pollute the air.