reva electric car co
TRANSCRIPT
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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.