ELECTRIC CAR REVAS CASE

Presented By: Jiten Gogri - 10054 Rahul Kotak - 10126 Nikunj Jain - 10101 Konica Jain - 100 Abhishek Pore - 10003 Shaun Paul - 100 Dassler Coutino - 10032

INTRODUCTION

May 2001, elecric car REVA was launched in Banglore by REVA ELECTRIC CAR COMPANY. It was Indias 1st ZERO POLLUTING, BATTERY DRIVEN car with running cost of just Rs. 0.40 per km. It was priced at Rs.2 lakhs and was cheapest car in India then. Features: low running cost, gearless driving, dent proof body material. Competitor Maruti 800 was available at the same price but its running cost was 4 times higher than that of Reva. Considered as the answer to reducing increasing pollution levels due to automobiles

THE INDIAN PASSENGER CAR INDUSTRY

Till 1970 only 2 cars were available Hindustan Motors Ambassador and Premier Automobiles (PAL) Padmini. Govt controlled the price mechanism and entry for foreign players was strictly regulated. 1981 establishment of Maruti Udyog Limited (MUL),a joint venture between the Indian Govt and Japanese automobile major Suzuki Motor Corporation. In late 1980s MUL became the market leader by offering small, fuel efficient and well designed car. In early 1990s Indian economy opened its marked to foreign players and many multinationals entered the country through joint ventures/ subsidiaries and changed the Indian passenger car industry scenario.

COMPANYS APPROACH
Zero pollution , low cost , dent proof body Positioned as a second car for housewives, professionals and students Focused on USP of no pollution I dont pollute when I commute Customer loans and maintenance was taken care of and car back scheme was launched.

CHALLENGES FACED Competition two wheelers and other four wheelers Customer satisfaction Acceptance in the market Low profit margins Small segment

X axis >1 Merce des BMW Benz

1 Honda

Price 0.4 5

Toyota Ford

Hyund ai

Tata Motors 0.2 5 MUL

Mahin dra

Fiat India

Market Share

L
Y axis

SWOT Strengths Easy to drive Zero pollution Economical More convenience Tax exemption Weaknesses Less promotions Less awareness Requires charging Not spacious enough Low power & speed

CONTINUED Opportunities Huge market Rising crude prices Demand for Green fuels Improve in technology Bharat Stage norms

Threats New entrants Outdated look Better performing cars

PORTERS 5 FORCES ANALYSIS:

Supplier Power

Threat of new entries

Industry Rivalry

Substitutes

uyer Power

SUPPLIER POWER

Collaboration with CURTIS AMERIGO - Chassis Total of 175 suppliers

No of alternatives available at or around same price range

THREAT OF NEW ENTRANT

Honda civic (hybrid) Toyoto prius Tata Motors- Nano( Priced At 1 Lac)

2 wheelers Maruti 800,Alto

INDUSTRY RIVALRY
A number of rivals in the industry (nano,Maruti 800 Growing automobile industry High entry and exit barriers Diversity of Rivals

STRATEGIES Reva should look into other promotional strategies. More tie ups with banks and other financial institutions. Can attempt change in positioning. Improve design and provide more features Increase capacity to minimum accommodation of 4 adults

Improve the battery technology or provide a spare battery mechanism in the car Improve the power and speed of the vehicle so it can compete with vehicles in the same price range.

SURVIVAL
Will depend on Mass production

Reliability Performance Reasonable cost

FUTURE OF REVA
Analysts skeptical of the future Sustainable Ecology Environmental Friendly Vehicle Demand in International market

THANK YOU