The case discusses the launch of the first electric car in India - Reva, by the Bangalore-based Reva Electric Car Company. It talks about the Indian passenger car industry and the steps taken by the Government of India as well as the major players in the global automobile industry, to reduce automobile pollution. The case also explains how electric vehicles can help reduce automobile pollution and examines the future of electric vehicles, particularly Reva, in India.
In
May 2001, Reva1, an electric car, was
launched in Bangalore by the city-based Reva Electric
Car Company (RECC). Reva was claimed to be India's first
zero-polluting, battery-driven car with a running cost
of just Rs.2 0.40 per km. One of the first
electric cars in the world to go in for mass production,
Reva was slated to become the cheapest car in India. It
was priced at about Rs. 0.2 mn and the first 10 cars
were delivered to customers in July 2001.
Reva
generated a lot of excitement in the Indian automobile
industry since it offered many significant advantages
over conventional cars. Its low running cost, gearless
driving, dent-proof body material and other
state-of-the-art technologies made it an alternative
package. Reva was soon being compared with India's
largest selling car, Maruti 800. Though available at
almost the same price as Reva, Maruti's running cost was
almost four times higher than that of Reva. The car was
also seen as the answer to reducing the increasing
pollution levels caused by to automobiles.
Media
reports claimed that Reva was all set to bring about a
revolution in the Indian passenger car industry. Some
analysts claimed that the electric car would create an
entire new market and attract small families in hordes.
Hormazd Sorabjee, Auto Analyst and Editor, Autocar
India, said, "If Reva's claim of keeping the
running costs at Rs. 0.40 per km is achieved, the car
will be attractive to cost-conscious consumers who are
ready to compromise on the limitations of an electric
car." |
