Electric Car Reva

On The Road to Reality Contd...

In 1996, RECC built the first prototype for Reva and received the mandatory certification. The prototype was also put through the 250,000 km 'shaker test'⁷ at the Automobile Research Association of India (ARAI), Pune. It was also tested at ARAI for homologation⁸ and was certified for road-worthiness. The prototypes were also tested in the US.

In 2001, the commercial version of Reva was launched in Bangalore. Reva was a two-door hatchback¹⁰, which could accommodate 2 adults and 2 small children. RECC did not adopt any marketing or promotional strategies as the company felt that the cars should be sold without the help of advertisements. Sudarshan said, "We mostly depend on public relations and use minimal advertising." The car was targeted at two-wheeler owners planning to buy a 4-wheeler.

It was also positioned as an ideal second car for housewives, professionals and students. RECC also planned to sell the cars to tourist operators to be used as taxis. Sudarshan said, "At Rs 0.40 per km, it is the cheapest car to drive around." RECC also promoted itself as an environment-friendly company. It promoted many environment-linked events on World Environment Day. The car also had the slogan: "I don't pollute when I commute."

Initially, RECC had only one company-owned showroom in Bangalore and planned to open more showrooms in some of the major cities across India. The company planned to launch the car in a phased manner, nationally. Depending on the demand, the company appointed dealers nationwide. In late 2001, RECC launched Reva in Goa. By January 2002, RECC appointed about 7-10 dealers in North India. In April 2002, Reva was launched in Delhi and Surat.

To promote the sales of Reva, RECC requested the state governments to exempt Reva owners from road tax and sales tax. This was granted by the Karnataka and Rajasthan governments. In September 2001, RECC entered into an agreement with ICICI¹¹ to provide loans to people planning to buy Reva. As per the agreement, customers could get loans covering about 75-85% of the cost of the car. In February 2002, Reva was planning to extend its agreement with ICICI for leasing the cars at a nominal cost.

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7] During the shaker test, a car is mounted on four posts. Each of the posts is independently moved to simulate various road conditions over a cycle of 4,00,000 km.
8] Homologation is the certification of a product or specification to indicate that it meets regulatory standards.
9] A US-based consultancy offering services in the areas of operations, manufacturing and strategy.
10] A hatch is a rear luggage access door with a fixed glass window. It is hinged at the top and hangs vertically or at an angle. In a 'hatchback' car, the luggage area is integrated into the passenger compartment. Instead of a boot and a horizontal stretch at the back, the roof slopes down at an angle of 45 degrees, with a small door or 'hatch' at the back of the car.
11] Industrial Credit and Investments Corporation of India (ICICI) was a leading financial institution, which transformed itself into India's first universal bank following its merger with ICICI Bank.