Reva sells

Although only 2,500 Revas have been sold since 2001, it is already the world’s largest selling EV. In a few months, this little-known company will begin the single most ambitious period of its existence. In FY 2008 alone, RECC plans to sell between 3,000 and 5,000 cars, and in 2009, 12,000.

Businessworld
Pierre Mario Fitter

India accounts for just 33 per cent of RECC’s sales, while 21 countries such as the UK, Norway, Japan and Sri Lanka make up the rest. The UK is the largest of these markets. RECC sold its first Reva here in 2004. Since then, 1,000 G-wizs, as the Reva is called in Britain, have been bought. Part of the G-wiz’s success is due to many government-led incentives. Also, the car is sold through the website of RECC’s UK partner GoinGreen to keep marketing costs down. Online, customers can request a test drive, and even customise their order.

The Reva has also found reasonable success in Norway. Bjornar Teig, the marketing manager of Ole Chr. Bye, RECC’s Norwegian partner, expects to sell 500 Revas next year, thanks to a planned expansion in RECC’s product line. At present, Teig sells 60 cars a year.

The Reva car bodies are plastic instead of metal. Plastic can be pre-impregnated with colour, and is easier to mould. And, because it is dent-proof, repairs after small accidents are cheap. Additionally, plastics mean lighter cars, which reduce the load on Reva’s eight lead-acid batteries.

Customers

Ganesh Eashwar, a long-time acquaintance of the Mainis, is considering buying a few Revas as delivery vehicles for his organic products business. “I tried it for 10 days and it was so easy to drive and park,” he says. “It blends in perfectly with our business philosophy — clean transport for organic food.”

WeP Peripherals, a Bangalore-based firm, bought 25 Revas for its staff across India in late 2007. “We wanted a more environment-friendly option,” says Jayant Gundewar, chief strategy officer of WeP. “With bikes, our engineers could not carry enough spare parts and were forced to make multiple trips. Now their productivity has increased.”

Issues

The Reva also suffers from limited back-seat space and minimal luggage room. At one time, there were also serious safety concerns. Top Gear, a British car show, did a controlled crash-test on a G-wiz at 64 km/hr. Maini admits the car didn’t do well, but says that the speeds were above the legal requirement. “In over 40 million km of Reva usage, there has not been a single fatality or serious injury,” he says. Still, RECC updated the design and a revised vehicle was released within six months of the tests.

For broader appeal, RECC could focus on the Reva’s many customisation options such as personalised paint work (from tiger stripes to company logos) to multiple trim options for the interior. Then there’s the Reva’s low cost of ownership (Rs 0.40/km) at a time when oil comes at $115 a barrel. RECC will release at least three new models soon. The first is a limited-edition convertible, that may be based on the Reva NXG concept. There are also plans for a four-seater hatchback and a mini-truck.