Reva car

I dont pollute when I commute

Abir Roy Chowdhury

ITM XMBA 16
14th August 2010

Contents

Inception Philosophy Post launch Strategic issues Acquisition Conclusion

Inception
RECC* was established in 1994 Joint venture between the Maini group & Amerigon Commercially launched in 2001 (Bangalore), 2002

(Delhi), followed by Chennai, Mumbai and Pune

Uses Electricity - Environment friendly

.
Target customers Housewives, Professionals and

Students

*Reva Electric Car Company .

Philosophy
Zero Wastage Zero defects

Zero time delays ZERO Principle Zero inefficiency Zero Compromises Zero pollution
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Post launch
Extended leaderships across Delhi, Bangalore,

Chennai, Goa, Delhi, Surat and Jodhpur Switzerland

Exports countries like Nepal,Malta,UK,USA and

Planned to adopt advanced battery technologies Planned for solar chargeable version of Reva Connected with major hotels, super market chains,

and movie theatres for providing charging points

What goes wrong ?

Pricing
The export market segment is a key focus area
Mr. Chetan Maini MD. RECC

Comparable cars in other countries might cost as much as $40,000 Chetan Maini MD. RECC

Effect : Over Priced. Priced at Rs.2.49 Rs. 2.74 lakh.

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Contd
Tata Indian diesel Maruti Zen diesel Maruti 800 Reva HIGH Maintenance Cost LOW LOW Price
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HIGH

Infrastructure
Two door hatch back and a payload of 500lbs Very compact Product not well design

Effect : Insides are incredibly cramped Lacks basics like comfort and space
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Contd
Tata Indian diesel Maruti Zen diesel Maruti 800 Reva HIGH Space LOW LOW Price
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HIGH

Wrong approach
It's like running a car at the cost of a two-wheeler."
-Sudarshan Maini, Chairman, Reva Electric Car Co., in August 2000

We mostly depend on public relations and use minimal advertising Executive, RECC

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Others
No Central subsidy, where Japan has provided a subsidy of

$2,600 per car to Reva

Market size overestimated 80 kms on 8 hours in full charge. Not suitable for long run 15 Amp socket may not available all the places The replacement cost of battery Rs. 25,000 after 40,000 km

*A subsidy (also known as a subvention) is a form of financial assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry

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Acquisition
Mahindra enters high growth electric car segment; acquires majority stake in REVA

(From Left Right) Mr. Rajesh Jejurikar, Chief Executive, Automotive Sector, Mahindra & Mahindra,
Mr. Chetan Maini, Chief of Technology & Strategy, of the newly formed Mahindra REVA, Dr. Pawan Goenka, President (Automotive & Farm Equipment Sectors), Mahindra & Mahindra, Mr. Sandeep Maini-Reva, Mr. Parthasarathy, Group CIO, EVP-Finance & M&A Member of Group Executive Board, Mahindra & Mahindra.)
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Conclusion
Mahindra to have 55.2% equity in REVA Electric Car

Company (REVA)

Company to be renamed Mahindra REVA Electric Vehicle

Company (Mahindra REVA) development expertise Mahindra vehicles

Mahindra REVA to leverage Mahindras vehicle

Mahindra REVA electric technology to be deployed in

Dr Pawan Goenka elected Chairman of the newly

constituted board.

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Thank you

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