Reva Electric Car Company*

            


Details

Case Code : CLBS041
Publication date : 2004
Subject : Business Strategy
Industry : Automobiles
Length : 03 Pages
Price : Rs. 50

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Key words:

Reva, Curtis, Maini Group, Amerigon, Environment friendly car, tax exemption, ICICI loan, World Environment Day, Electric Car


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet delves in to the journey undertaken by Reva Electric Car Company before they became one of the established leaders in the environment friendly car market. The caselet deals with the positioning of the car and how it used its unique pro-green image to promote its public relation activities. The caselet also explains the way in which the company went ahead with the implementation of dealer appointment and customer friendly schemes.

Issues:

 » Using innovative customer-friendly schemes to generate customer loyalty.
 » How a company used Public Relations as a marketing tool.
 » Stages of launching a new product into the market.

Introduction

Reva Electric Car Company (RECC) was established in 1994 through a joint venture between the Maini Group and Amerigon. Amerigon helped RECC in building the chassis of Reva. The car uses electricity and was manufactured at RECC’s plants at Bommasandra in Bangalore.


The car’s key technologies included its steel frame, the energy management system and a motor controller. The motor controller was developed through a technical collaboration with Curtis, one of the world’s leading manufacturers of motor controller for electric vehicles...

Questions for Discussion:

1. RECC appears to have positioned Reva in the niche segment of two-wheeler owners graduating to a 4-wheeler. Do you agree with the company’s approach? What are the options and alternative strategies open to RECC to deal with the challenges?

2. RECC did not adopt any marketing or promotional strategies as the company felt that the cars should be sold without the help of advertisements. How is the company planning to sell its cars?