The vehicle will be produced at Mahindra Reva's recently inaugurated plant in Bengaluru, the company said in a statement.
Commenting on the development Mahindra & Mahindra Automotive & Farm Equipment Sectors President Pawan Goenka said: "The Mahindra e2o is a game changing development within the personal mobility space that will help the Mahindra Group usher in a positive change in the lives of our customers".
This is significant step towards creating a comprehensive eco-system of sustainable mobility solutions, encompassing alternative technologies such as electric, hybrid and fuel cells into the company's research, development and commercialisation plans, he added.
Started under the project code name NXR, the Mahindra e2o is powered by Reva, benefiting from Mahindra Reva's extensive experience in electric cars, the company said.
The car will use Lithium Ion batteries and have a range of 100 km per charge which is adequate for most daily journeys within the city. The vehicles can be charged through any 15 ampere plug point at home, or at the workplace, it added.
In addition, the car is capable of using the futuristic ecosystem of 'Sun2Car' to derive energy from the sun to charge the vehicle, Mahindra Reva said.