Headed towards Green
Going green might be the next ‘in-thing’ in today’s world, but then the idea, in most of the cases, is being adopted more out of compulsion than choice. While the unprecedented rise in pollution and depleting natural resources have led to a serious rise in the global warming, it has left companies with no other option but to go green. However, still there are few who are happily en-cashing this paradigm shift in consumer’s preference through their environment friendly products than taking it on just out of force.
In fact, since its inception in 1994, REVA Electric Car Company Pvt. Ltd. (RECC – a joint venture between Bangalore based Maini Group and AEV LLC California) with all its unique selling points, diminutive size, zero polluting and battery-propelled go-car – REVA – has been slowly and steadily making inroads for itself in the global auto market. No doubt, being an eco-friendly car is definitely a plus for REVA in today’s world, but then there are loads of challenges that too question RECC’s ability to sell the concept to a larger audience. Apart from this, tough competition from established players from the fossil fuel driven vehicle category, comparative high price a la recently launched Tata Nano, lack of proper charging infrastructure, et al, make the scenario a little tough for this mini electric vehicle (EV).
Though, since REVA’s commercialisation in 2001, RECC has only about 3,000 vehicles currently plying on the roads across the globe, it can’t be called bad as the concept is still new. In fact, today REVA is not only being marketed in 21 countries, which include UK, Italy, Norway, Spain, Japan, et al, but has also undertaken test marketing in 36 different territories. “Apart from India, our primary sales markets are UK and Norway. London is our largest overseas market, where there are 1,000 REVAs on the road,” clears Keith Johnston, President European Operations, REVA. Moreover, thanks to the $20 million investment from Draper Fisher Jurveston, Global Environment Fund and Mellon HBV Master Global Event Drive Fund LP, RECC has been able to fuel its production facility up to 30,000 units per annum.
At 40 paise per km REVA definitely seems to have an upper hand when it comes to the running of the machine, but then building a battery that can run the car non-stop for hours is still a big challenge for RECC and many of its ilk. Moreover, marketing the new concept, distribution and making the target audience believes in it to finally buy REVA too acts as a major road block that RECC needs to overcome if it wants to make a dent in the share of the conventional vehicle manufacturers. “We will be launching a global REVA web channel later this year, which will act as a key sales channel for distributors and will monitor this on a market-by-market basis,” however counters R. Chandramouli, President Sales and Marketing, REVA. Though the current REVA variants are priced between Rs.3.3 and 4 .3 lakhs, which are at par with the prices of other small cars in the market, but Tata Nano remains favourite among price sensitive audience. More
Even the very concept of being an electric car can put brakes to REVA’s journey in a country like India, where electricity is a major problem. Further, setting up of charging point stations across India would take a lot before it can match up with petrol pumps and other fuel stations. However, RECC is planning to bring out solar powered electrical vehicles to put an end to the problem. Moreover, the prospective launch of the new Lithium ion powered REVA L-ion, which has a six hour standard charge and a one hour fast charge to 90%, might boost RECC’s sales.
