CHETAN MAINI (REVA)

PRESANTED BY :-Abhradeep Paul

CHETAN MAINIDeputy Chairman and CTOReva Electric Car Company

Chetan Maini is the Deputy Chairman of Reva Electric Car Company Private Ltd. (RECC), a joint venture between Maini Group of Bangalore and AEV LLC, USA. Chetan has over 14 years experience with electric vehicles during the course of which he has developed over 6 electric, solar and hybrid-electric vehicles in India and US. Chetan holds a graduate degree in Mechanical Engineering ( BSME ) from the University of Michigan where he focused on solar electric vehicles, and a postgraduate degree in Mechanical Engineering from the University of Stanford where his focus was on hybrid electric vehicles.

At Stanford, he was the project leader for the hybrid electric car project and earlier at the University of Michigan, he was the key team leader of the Solar Car team that won the GM Sun Race and stood 3rd in the World Solar Challenges in Australia.He has a patent in energy management system for Electric Vehicles and has presented several technical papers on EV’s globally.Chetan has received the Dr. M.S. Swaminathan Award for Environment Protection for the year 2001, The YEO Thomas Alva Edison Award for Entrepreneurship and Innovation in February 2002 and the ‘Monte Carlo Sustainable Mobility Award 2005’ for RECC’s leadership in developing the world’s best selling electric car at the 21st Electric Vehicle Symposium in Monaco in 2005.

conceive the idea of Reva?Reva started in 1994 and we did research and development for 7 years which included around the first five years of hardcore research and development and then the next two years we built 40 cars and tested them for a billion kilometers before launching in 2001. We launched the product (Reva) in 2001 only in Bangalore and then we went on to London and then to other cities.As for where this came through: When I was in college, I had the opportunity to be a part of the university solar car team in the US and we raced as part of the solar car team from Florida to Michigan and our team stood first. And General motors sponsored us to go to Australia in 1990. We raced across the continent from Darwin to Adelaide and our team came third, right behind Honda research and development.For me what was really an eye opener was that if you could cross a continent on fine energy then the future of this seemed really good. During those days, I was coming every couple of years to India as I was still studying in the US, and later I started to work there (in the US).

I found that with every trip of mine the pollution was getting worse and that the auto market was booming. I realised that when you look at long-term in terms of pollution and energy security, these are going to be the issues in the future. They weren’t of course in 1990, people didn’t perceive them as issues then. But that’s what got me going. In 1991, three other friends and I worked for a friend’s father in California in a start up company (AEV LLC), which was set up to do electric vehicle technologies. Three years later (in 1994), that company and our Maini Group in Bangalore joined hands to set up Reva Electric Car Company.

Why EvsElectric Vehicle (EV) technology is gaining ground and popularity rapidly. With depletion of oil reserves and a world characterized by smog, noise and all kinds of pollutants, governments and communities are awakening to the several benefits of EV technology. Zero emission vehicles are almost noiseless and can be charged at home or work, saving commuters endless queues at petrol stations. Charging at night when consumption is low, allows for efficient use of electricity.EVs are easier to service and maintain due to the absence of spark plugs, clutch and gears. Ideal for "stop - start" city driving conditions, EVs are extremely reliable and easy to drive.

The average speed of travel in our cities has been steadily on the decline as the vehicle population rises. In fact, a recent study conducted by TERI (Tata Energy Research Institute) found that the average speed in Indian cities was as low as 20 km/hourWith the innumerable advantages of EVs, companies in developed countries have spent huge amounts to develop electric cars that can travel longer distances, providing high levels of comfort. In spite of this technology being available now, the cost of electric vehicles to suit driving requirements in these developed countries is prohibitively high.On the other hand, India is ready and well suited for the introduction of EVs today with the existing technologies available, making EVs cost effective.

Marketing strategies of REVA

Chetan maini doesn’t do different things. He just does things differently. The company has no dealers , no showrooms ,no advertising and no salesperson. pOtantial customerstest drive the car (christened G-Wiz) at one of 16 designated test- driving points in and around London. If they want to buy it, they go on line and book the car using debit or credit cards. In india they used a different technique: try it before you buy it. People could drive the car for a week afterpaying a non-refundable deposit (1500 to 30000). If they decided to buy, the amount was adjusted against the cost of the car. The two selling techniques was to good . The company now sells 3,000cars annually. And the credit for this has to go to Maini

On road cost of Reva

In Bangalore its Rs 3.5 lakh onwards and goes up to Rs 4.5 lakh. In Delhi the government provides some subsidies for this so the on road price starts from Rs 2.99 lakh and goes up to Rs 3.8 lakh.

What were the initial challenges Challenges were that we were a small team, trying to build a company that is very innovative, which we had to start from a clean slate and that allowed us to look at lot of innovations and ideas, which I think were very instrumental in getting the product out. The hurdles have been numerous. Initially, there were hurdles in fund raising, like convincing banks to fund such projects. Government policies were another hurdle. For example, before we started the project, we had a subsidy of over a lac of rupees per car, and the excise duty used to be at 8%. Right before launching, the subsidy disappeared and excise duty doubled to 16%, while excise on regular cars came down. So we have had these shocks that continuously come from the government perspective. We actually expected that with environment friendly products being made in India, we would get more support and the support won't go away overnight.

Another initial challenge was convincing the marketplace. Being the only player in the space was also very difficult. If you had ten people who were selling electric vehicles, they would all create a market space for a new product. If you are the only one then you are doing a lot more work on convincing, because the person walking in has no clue about how it works. So he is not coming to buy, he just wants to know more about it. To me, in India, more than in the area of technology, there were hurdles in the areas of finances, government, marketing and HR and these continue to be a challenge. When you are in a niche space, getting a team that has the capabilities and the potential for growth is especially challenging.

Characteristics of the Maini

1.Think out of the box : Maini couldn’t afford to marketbhis car conventionally. So, he took the Uk. In India, he rented it out for a week to people, after which they could decide whether to buy it2. Encourage innovation: The REVA boss is always on the look out for ways around a problem. He pushes everyone in the organization to think beyond the obvious.3. Lead from the front ; Maini is a Charismatic leader. Not many would want to join a strst-up with an uncertain future, but he has built a team of engineers and executives who share his vision.4. Solution man:

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