Mahindra & Mahindra (M&M) is working on an electric car that will be bigger than the Reva brand, said a senior company official. The four-seater, under development, will hit the market by 2010.

Reva sells at a base price of Rs 3.5 Lakh in Bangalore and Rs 2.9 Lakh onwards in New Delhi. In the European market, the car sells for 12,000 to 13,000 Euros. The M&M electric car would costlier. It will run on lead acid battery initially and on nickel metal hydride later, sources said.

M&M plans to launch the product in India and then take it abroad. This is contrary to the plans of Tata Motors, which is working on an electric car project for Norway and plans to launch the product there by the end of this fiscal and then make it available in other markets.

“We plan to launch the product in the country first and mature in the segment before venturing into foreign markets. We want to be prepared for the market and don’t want to be caught unawares,” said the official.

Once a technology is developed, it can be used across platforms, he said. Currently, M&M has an electric three-wheeler called Bijlee, and is working on an electric version on its three-wheeler Alfa.

Recently, at the M&M annual general meeting, Keshub Mahindra, group chairman, said that the company has “ushered in the three-wheeler electric vehicles and is currently developing electric options for several other models.”

When quizzed on the same, Pawan Goenka, president, automotive sector, M&M Ltd, had said, “There is better pay-back on three-wheelers.” He, however, did not rule out the possibility of using the technology in other products.

However, in a country with a huge shortage of power, the success of such vehicles is questionable. “Electric cars are not as economical as compared to CNG vehicles, since the latter is readily available at gas stations now. The way out is to develop low-carbon electricity technology, for which the auto companies are looking at tying up with energy companies,” said an analyst from Datamonitor.

Cross-subsidy from various state governments will help in the creation of infrastructure such as charging stations and will generate more interest among buyers, said Reva Electric Car Company chairman, Chetan Kumaar Maini, recently. The company, which has sold around 2,600 units till now, expects to reach its target of 6,000 units this year.

Lithium-ion batteries can make electric vehicles more attractive. These batteries have high specific energy of 80-200 Wh/kg compared to nickel metal hydride and lead acid batteries of 60-120 Wh/kg and 30-50 Wh/kg, respectively, and hence conserve energy better than traditional batteries.

Worldwide, auto majors like General Motors and Toyota have a presence in hybrid electric vehicles. Hyundai has plans to launch hybrid electric vehicles in India.