New Delhi: The Bangalore-based Reva electric car company is joining the likes of Tata and Renault in developing a cheap small car positioned below Maruti 800, reported The Economic Times.

Though the company has no concrete plans to enter Rs. 1 lakh car segment in the immediate future, it foresees that it has a huge potential in the next five years.

According to vendor sources, the company's version of the one lakh car will run on electricity, priced in 1-1.5 lakh range. The car would be four-seater and the batteries will be much more powerful. The car that is slated to be launched in 2010 and will be manufactured in small numbers in the initial years.

Reva, is a joint venture between India's Mani group and AEV LLC, California, U.S, which was formed in December last year. The electric car maker received an investment of $20 million from venture capital firm Draper Fisher Juverston and Global Environment Fund. The company is using the funds for developing new products for different markets and plans to increase the capacity to 30,000 units by next year.

The company plans to introduce one new product every year and hopes to sell about 3000 products in the next fiscal year.