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 company
 As a program manager at Amerigon, Chetan was
Involved with a variety of development projects in
manufacturing of electric cars.
 REVA: DRIVING TECHNOLOGY ADOPTION
THROUGH STRATEGIC INNOVATION1
With the commercial launch of the Reva in June 2001, fulfilled a
seven-year old dream to bring an electric car to the Indian
market.

But by March 2002, it was clear that while the car was
technologically sound, he still faced a number of challenges.

In order to counter the challenge , capital investments to a

minimum , product design and manufacturing strategy, by
outsourcing wherever possible where some of the statergies
implemented.
CONT….
 Government had not come forth with subsidies
as expected which prevents price effectively.

 Alsohas to face long-term challenge of

maintaining the technological leadership of his
company.
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.
 Chetan’s 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.
 BUSINESS MODEL
•Assembly and outsourcing
•Tie
ups
•Manufacturing strategy
1. The investment cost reflect projected cost peak to volumes of
15000-16000
2. Efforts were made to redesign car
3. All resulted in low project cost and an operating break-even
4. Pay-back period of 3.5%
 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
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, major
newspapers
4. Car has been showcased and demonstrated at major
technology companies
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
 Non-dentable body
 Voltage regulator

 Climate controlled seats as a substitute for AC

 Snorkel arrangement
 FUTURE CHALLANGES
RECC CHALLENGE lies in its ability:-

•TO OPTIMISE VEHICLE PERFORMANCE.

•TO PRODUCE SMALL VOLUMES VERY ECONOMICALLY.
•COREELECTRIC VEHICLE TECHNOLOGY IS NOW ESTABLISHED IN
THE MARKET IS A GREAT CHALLANGE
RAMPING UP PRODUCTION
 RECC’s 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 its small
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.
.
 RECC stated making adequate capacity utilization if RECC
could loose sale if it is not able to meet customers demand.
.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.
4.
. Govt. policies & subsidies:
As their vehicle is eco-friendly govt. is providing sales tax 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 can enter into market.