Electric Car Reva

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Themes: Mergers Acquisition and Takeovers
Period : 2001
Organization : Reva Electric Car Company
Pub Date : 2002
Countries : India
Industry : Automobile & Automotive

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Case Code : BSTR030
Case Length : 9 Pages
Price: Rs. 300;

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The Indian Passenger Car Industry Contd...

With steadily depleting oil reserves and increasing pollution, the emission regulations became stringent and automobile makers were looking at alternatives to the conventional engines. In the early 1990s, electric vehicles (EVs) started gaining popularity. They had been neglected after the onset of Internal Combustion Engines (ICE)³ in the early 1800s. Many EVs were launched in the market by major players across the globe. GM was the first major manufacturer to produce an electric passenger car EV1.

TABLE III
PASSENGER CAR SALES IN INDIA BY VOLUME (1994-2000)

	Volume	Growth (% YOY)
1994	209,203	27.0
1995	264,822	27.0
1996	345,486	30.0
1997	410,992	19.0
1998	417,736	2.0
1999	409,624	- 2.0
2000	638,815	55.8
2001	590,647	- 7.54

Source: www.karvy.com

TABLE IV
A NOTE ON AUTOMOBILE POLLUTION

Automobiles are one of the major causes of environmental pollution. The increase in the number of vehicles on the road also increased pollution. Besides damaging the environment, automobile pollution has also been identified as one of the primary causes for many health problems like eye irritation, and lung and respiratory disorders. The major sources of pollution from automobiles are its emissions including hydrocarbons, nitrogen oxides, carbon monoxides and carbon dioxides. All these pollutants affect the environment in different ways. The nitrogen oxides damage the ozone layer, which protects the earth from the harmful ultraviolet rays. The oxides make 'ozone holes' thereby allowing more ultraviolet rays to pass through. The oxides of carbon are major contributors to global warming. Carbon monoxide reduces the flow of oxygen in the blood thus causing health problems.

Automakers around the world have been working on new models reduce pollution. The 'Big Three' - GM, Ford and Chrysler - were one of the earliest automakers to launch low-emission and zero-pollution vehicles. David E. Cole, director of the U-M Office for the Study of Automotive Transportation (OSAT) said, "Automobile manufacturers and their suppliers will continue to face many formidable challenges in the next decade as they address the growing environmental challenges, and the tough global competition and more demanding customers."

Governments have also been working towards containing pollution caused by automobiles by implementing 'emission norms.' These norms indicate the permissible emission levels from petrol and diesel vehicles. Introduced for the first time in Europe, the norms were called as Euro I and Euro II. These norms required manufacturers to reduce emission levels by making some technical changes in their products. India adopted the Euro norms as Bharat I and Bharat II respectively.

Source: ICMR

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3] An engine where fuel is burned internally to produce power, such as the gasoline or diesel engine. External combustion engines burn their fuel outside the engine - for example, in a steam engine, oil or coal is burned in a boiler, and the steam from the boiler is used to power the engine.