Until late 1970’s the Indian Passenger Car Industry
had a limited choice – 1. HM’s – Ambassador and
2. Premier Automobiles – Padmini
In 1981, a Joint Venture between MUL and Suzuki
Motor Corp. got the Indian car market roaring. INTRODUCTION
Electric Car Reva
Launched in Bangalore, in May 2001. 1st ever battery driven car
Priced competitively at around Rs. 0.2 million
Its immediate competition was Maruti 800
INDIAN PASSENGER CAR INDUSTRY (MARKET SHARE) SEGMENT MODELS APPROX MRKT SHARE (1999 - 2000)
Economy Maruti Omni, Maruti 46.8%
(up to Rs. 0.25 million) 800
Mid-Size Hyundai Santro, Tata
(Rs. 0.25 – 0.45 million) Indica, Wagon R, Zen 43.1% Luxury Honda City, Mitsubishi (Rs 0.45 – 1 million) Lancer, Ford Ikon
Super Luxury Mercedes Benz, BMW, 10.1%
(Above Rs. 1 million) Audi DISTINCT FEATURES • Environment friendly car, electric run and non polluting • Easy to drive • Small Size & Elegant • Stable and safe driving • Hassle free Maintenance(No Engine, carburetor etc) • City Car- Mobility • High Value for money for users and environment • Affordable personal Transportation-Daily Routines • Saving during usage • Progressive Innovation POSITIONING STRATEGY Positioning: “Ideal Second Car for Housewives , Professional and Students”
We Don’t agree with Company’s Approach:
• Incorrect Positioning – not using the USP to the core;
i.e. Eco friendly • Generic Target- No Specific Target Group • Not used proper means of advertisement: could rope in Brand Ambassadors •Celebrity in advertisement could have helped sales CHALLENGES FACED • Change in Attitude • No Electric recharge stations in India • Initial low Sales • Low Consumer awareness • Low Top Speed(60KM/hr) • Small Driving Range(up to 80KM) • Less spacious as compared to Maruti 800 • Market size – Over estimated • Lacked Practicality & convenience of an everyday car RECOMMENDED STRATEGIES… • Awareness – about helping the environment • More Service Stations • Improve the speed efficiency of the car • Change the Space dynamics • Have a Specific customer base: Middle & Upper middle income groups • Expand the sales – by targeting: • Tier I Cities • Huge congestion on the roads • Lack of parking space • Tier II Cities • Targeting the middle income bracket – Working Population • Targeting women – ease of driving CONCLUSION Reva is in a totally different market segment, being marketed as a personal ‘city’ car The Success of Reva depends upon
Whether they can mass produce
Ensure reliability and good performance at reasonable costs by removing the noise level & increasing seating capacity THANK YOU !!