A Case Study on Electric Car Reva (- I don’t pollute when I commute)

Preed By Adil Khan Juhi Vaswani Shikha Poddar Denver Pinto Vivek Pandey Kunal Tanna Mallika Shetty

Indian Passenger Car Industry Until late 1970’s the Indian Passenger Car Industry had a limited choice – HM’s – Ambassador and 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 (up to Rs. 0.25 million) Maruti Omni, Maruti 800 46.8% Mid-Size (Rs. 0.25 – 0.45 million) Hyundai Santro, Tata Indica, Wagon R, Zen 43.1% Luxury (Rs 0.45 – 1 million) Honda City, Mitsubishi Lancer, Ford Ikon Super Luxury (Above Rs. 1 million) Mercedes Benz, BMW, Audi 10.1%

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 !!