A Reva car on display in New Delhi on Wednesday. (PTI)

New Delhi, June 25: Reva Electric Car Company today rolled out its range of cars in New Delhi.

In a move to popularise battery-operated cars, the Delhi government has announced a 15 per cent subsidy on the car’s base price, a 12.5 per cent exemption on value-added tax and a refund of road tax and registration charges, totaling to a 29.5 per cent incentive on all types of electric vehicles.

The car is priced between Rs 2.99 lakh and Rs 3.78 lakh, and will cost users 40 paise per kilometre.

The electric car maker said it would ramp up its capacity five-fold this year on expectations of a rise in demand because of soaring petroleum prices.

The company currently manufactures 6,000 cars a year and is expanding its production capacity to 30,000 units by the end of this year at an investment of up to $20 million.

“We have completed our test marketing period and are expanding our sales to Delhi. To meet the growing demand for Reva, we will be expanding our production capacities five-fold by the end of this year,” said Chetan Maini, chairman and chief technical officer of Reva Electric Car Company.

However, the company will start utilising its full capacity only after three years, he added. “We have already raised $20 million for R&D and expansion. So far, the company has committed $50 million in the country,” said Maini.