REVA Electric Car Co

8/6/2019 REVA Electric Car Co.

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BACKGROUND

Chetan had an interest in cars right from his

childhood :-

Developed radio-operated car at the age of 12.

won a solar-powered car contest.

After obtaining degrees from the University of

Michigan and Stanford University, Chetan joined

Amerigon, an American companyAs a program manager at Amerigon, Chetan was

Involved with a variety of development projects

in manufacturing of electric cars.


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REVA: DRIVING TECHNOLOGYADOPTION

THROUGHSTRATEGICINNOVATION1With the commercial launch of theReva in June2001, fulfilled a seven-year old dream to bring anelectric car to the Indian market.

But by March 2002, it was clear that while the carwas technologically sound, he still faced a number ofchallenges.

In order to counter the challenge , capitalinvestments to a minimum , product design andmanufacturing strategy, by outsourcing whereverpossible where some of the statergies implemented.


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CONT.

Government had not come forth with

subsidies as expected which prevents

price effectively.

Also has to face long-term challenge of

maintaining the technological leadership

of his company.


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CONT

Indian cities with dense traffic, scarcity of

parking space, pollution problems, and high fuel

costs, Chetan believed that there could be a

market for a small, environment-friendly. Chetans family runs the Maini group, that

consists primarily of a precision component

manufacturing.

Maini Precision Products (MPP) exported

components with a 2 micron tolerance to Bosch.


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Raising finance was major hurdles Battery management

AEVT system

Other strategies

Reva team made trade-off b\w cost and convenience

Company gave free installation of charging infrastructure


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BUSINESS PROSPECTS

Niche marketing

Designed in a modular form

Upgrade with technologies change

Marketing strategy

1. The company hopes to be granted subsidies by the

govt.

2. Innovative ways to promote its sale

3. Local exhibitions, events, journalists, majornewspapers

4. Car has been showcased and demonstrated at major

technology companies


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CAR FEATURES

Energy efficiency

Low operating cost

Low maintenance cost, low centre of gravity

Reasonable range

Safety and reliability

Easy to drive

Non-polluting vehicle

Price-249000

Small in size


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Non-dentable body

Voltage regulator

Climate controlled seats as a substitute for AC

Snorkel arrangement


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FUTURE CHALLANGES

RECC CHALLENGE lies in its ability:-

TO OPTIMISE VEHICLE PERFORMANCE.

TO PRODUCE SMALL VOLUMES VERY ECONOMICALLY.

CORE ELECTRIC VEHICLE TECHNOLOGY IS NOW ESTABLISHED INTHE MARKET IS A GREAT CHALLANGE


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RAMPING UP PRODUCTION

RECCs low investment makes the company dependent

on external suppliers to increase volumes, So due to

which bargaining power is more of suppliers.

RECC had tried to overcome the disadvantage of itssmall volumes by intense interaction with suppliers so

to build strong relationship.

AND at the same time it is difficult to find small

supplier in india who can maintain quality level and

delivery commitment required.


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.

RECC stated making adequate capacity utilization if

RECC could loose sale if it is not able to meetcustomers demand.


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.2. Change in Competitive landscape:Hyundai(santro) ,Maruti(alto), Tata(nano)

3. R&D and technology management:

REVA see ahead for new & emerging technologies.They committed to spend 7% on R&D. As they are

spending more on R&D they have to retain their

qualified R&D manpower and keep them motivated.


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.4. Govt. policies & subsidies:

As their vehicle is eco-friendly govt. is providing salestax and road tax exemption.

but for imports they are not getting exemption on

excise duty or custom duty.

5. Large Automobile companies:

As gaints like G.M ,FORD,TOYOTA &NISSAN all

have electric vehicle development programme and if

they saw substantial growth in this segment they canenter into market.

Documents

REVA Electric Car Co