This document is authorized for personal use only by V V S N V PRASAD CHUNDRU, of BITS Pilani till 27th February ,2018.

It shall not be reproduced or distributed without express written permission

from Indian Institute of Management, Ahmedabad.

Indian Institute of Management

Ahmedabad IIMA/ PROD0314

Innovation in the midst of uncertainty- A case study of

Mahindra Reva Electric Vehicles Private Limited

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INTRODUCTION

It was the summer of the year 1989. Chetan Maini, a young graduate student at the
Department of Mechanical Engineering, University of Michigan, hit upon the idea of making
the most energy efficient car in the world. It all began as a hobby for Chetan, the youngest
son of Dr. Sudharshan Maini, the head of the Maini Group in India, when he was in school.

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The groups first company, Maini Precision Products (MPP) was started in the year 1973. It
manufactured 1,500 world-class precision components and assemblies in hydraulics,
material handling, automotive and off-highway for customers in Europe, Canada, France,
Brazil and Spain.

While in St. Josephs Boys High School, Bengaluru, India, Chetan built a remote controlled
model car and a go-kart. At the age of 14, he built a 35 cm long electric car that could run at
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the speed of 30 kilometres (km) per hour. Later, he obtained his Bachelors degree in
Mechanical Engineering from the University of Michigan, the United States, in the year 1992.
During the very first year of his college he built a super mileage, solar powered car that
would yield 400 km per litre. This car won the first prize in the United States while Chetan
was pursuing his Masters in Stanford University in the year 1990. After completing his post-
graduation, he joined Amerigon Electric Vehicles Technologies Inc. in the United States.
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Amerigon which was set up in 1991 by Lon Bell in California, was a pioneer in
thermoelectrically heated and cooled seat systems for the automotive industry. Chetan
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joined Amerigons electric vehicle project as a project engineer and later got promoted as
manager. At Amerigon, Chetan gained knowledge about electric vehicle technology, the
fundamentals of cost control, industrial management and marketing strategy.

The year 1991 saw India go through economic reforms and move towards liberalisation,
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privatisation and globalisation. The economy opened up for foreign countries, thus creating
a conducive business environment. The Indian government encouraged the setting up of
new industries to encourage global companies entering India. The automobile industry too
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underwent change with new product launches during this period.

Once, Chetan mentioned, I used to visit India once a year and started getting a feel of how
things are changing the economy was opening up, pollution was getting crazy,
consumerism had picked up and hence I found the idea of a low cost electric car for India
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very relevant. However, Chetan, who visited India during that period was concerned that
if most ambitious Indians dreamt of owning a car, what would happen to the environment?
Petrol cars caused more pollution. He felt that the economy and the business environment
were ready for the launch of a fuel efficient car for the price conscious Indian. By this time,

Prepared by Professor Lakshmi Shankar Iyer, Institute of Management, Christ University, Bangalore
and Professor Goutam Dutta, Indian Institute of Management Ahmedabad.
We acknowledge the support provided by Mahindra Reva executives.
Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for classroom
discussion. They are not designed to present illustrations of either correct or incorrect handling of
administrative problems.
2017 by the Indian Institute of Management, Ahmedabad.
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the parent company Maini Group had already made a successful foray into making energy
efficient vehicles. Chetan was confident about the expertise he had gained at Amerigon.
With this confidence, he launched the electric car in the Indian market.

HISTORY OF ELECTRIC VEHICLES (EV)

The evolution and growth of electric vehicles was inspired by the concept of electro
magnetism developed by several European scientists like Volta, Faraday and Tesla.
Alessandro G.A. Volta (1745 1827), an Italian physicist and chemist, was credited with the

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invention of the first electrical battery. Michael Faraday (17911867) was an
English scientist who contributed to the fields of electromagnetism and electrochemistry.
Nikola Tesla (1856 1943) was a Serbian American inventor and an electrical engineer. He is
best known for his contributions to the design of modern alternating current (AC) electricity
supply systems. Thomas Edison could be credited with joining this group as he saw the

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opportunity for an electric car and his efforts went into making the first nickel iron battery
for electric cars. The years after this were probably the most opportune moments for the
development of an electric car.

A world exhibition held in Chicago in 1893 featured six types of electric cars. However,
these cars were competing with two other types of vehicles, the steam engines and the
gasoline Internal Combustion Engines (ICE). This was the period during which several
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technical and infrastructural innovations took place. Fast charging of batteries was required
on a mass scale. For electric cars, grid charging stations were established and there were
continuous discussions about further expansion of these capacities (Exhibit 1). It was
reported that European countries along with Japan continued the use of electric cars because
of shortage of gasoline in Germany. It was also reported that Germans used 3,000 electric
vehicles during the Second World War. However, the rate of these infrastructural changes
was not good enough to compete with similar changes in gasoline powered automobiles.
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Various reports released during this period indicate that electric cars lost the race to capture
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the automobile market.

NEED FOR ELECTRIC VEHICLES (EV)

During the seventies, three important things happened. The Club of Rome released the book
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Limits to Growth by Meadow et al. (1972). In their book, the authors highlighted the issue of
absolute global limits to future growth due to the use of non-renewable natural resources
like gasoline. Second, the western world was hit by an oil embargo by the oil producing
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nations in the Middle East leading to rationing of oil. The third point of discussion was on
nuclear power. From the early seventies, the debate had started across almost all nations in
the western world on the potential of renewable resources for other than manufacturing of
energy efficient cars.

In the next 50 years, the population of the world is expected to grow up to 10 billion (Exhibit
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2) and the number of vehicles to 2.5 billion (Exhibit 3). With the exponential increase in the
number of vehicles in the coming years, the gasoline requirement from the automobile
industry is expected to be three times more. Needless to say the existing gasoline reserves
would be inadequate to cater to the needs of the increased number of vehicles.

Another aspect is that the increase in the number of vehicles would lead to increasing
emission levels. If so, what would be the impact of such emissions on the environment?
Assuming a linear growth in emissions with the number of vehicles on the roads, our
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population may not be able to cope with increasing emission levels. Hence, there is need for
alternate fuels and alternate cars. EV or Hybrid Electric Vehicles (HEV) could be the
solution.

WHAT IS AN EV?

An EV, also known as an electric drive vehicle, is run by electricity from battery operated
sources to drive a motor that propels the vehicle, in place of gasoline operated engines
(Exhibit 4). An EV is powered by external sources like an electric train, electric aircraft or

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electric spacecraft, a self-contained battery or a generator to convert battery fuel into
electricity.

EVs first came into existence in the middle of the 19th century, when electricity was among
the preferred methods for motor vehicle propulsion, providing a level of comfort and ease of

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operation that could not be achieved by the gasoline cars of the time. ICE was the dominant
propulsion method for motor vehicles for almost 100 years. However, electric power has
remained common in modes of transport like trains and smaller vehicles of all types.

Electric vehicles were considered to be not only a transportation machine, but also a new
type of vehicle (Chan, 2001). This was a vehicle with a distinct characteristic based on a
modern electric propulsion system that had a motor, a power converter and an energy
source. It was not just a car, but a necessity in our society, and catered to the need for a
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clean, energy efficient transportation system. So, it became necessary to understand and
study the end users expectation before designing an EV.

Electric vehicles had three main subsystems - the electric propulsion sub-system, the energy
source subsystem and the auxiliary system. Breaking down the product further, there was
an electric propulsion system, an electronic controller, a power converter, an electric motor,
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a mechanical transmission and driving wheels. The second sub-system known as the energy
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source sub-system had three sub-components - an energy management unit, energy source
unit and energy refuelling unit. The energy management unit worked in tandem with the
electronic controller to control the regenerative braking system and its energy recovery. It
also worked with the re-fuelling unit to monitor and control the refuelling of the energy
source. The third sub-system, the auxiliary sub-system, had three components: an auxiliary
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power supply unit, a power steering unit and a temperature control unit. The auxiliary
power supply unit provided the necessary power with different voltage levels for all EV
auxiliaries especially for the temperature control and power steering units.
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The brakes and accelerator pedals on the car received the input from the driver. The
electronic controller transmitted a control signal to switch on or switch off the power devices
of the power converter. This monitored and controlled the power flow between the electric
motor and the energy source of the electric motor. These mechanisms and engineering
concepts allowed the system to control the speed, based on the inputs provided by the
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driver.

CONFIGURATION OF AN EV

Due to variations in electric propulsion and energy sources there are many possible EV
configurations.

Exhibit 5 and 6 show the details of configuration of an electric vehicle.

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4 of 18 IIMA/PROD0314

KEY TECHNOLOGIES OF REVA SUPPORTED BY THE MAINI GROUP

The battery was an integral part of an electric car and was also a critical component - it had
to be small and safe. Maini Materials Movement (MMM) stepped in to help out Reva in
making the battery chargers for them. This helped Reva cut down on production costs. The
other core technology of Reva was the Energy Management System (EMS) which was
transferred from Amerigon to The Reva Electric Car Company (RECC) in 1998-99. Since

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then, EMS underwent tremendous technological changes to achieve superior capabilities
(Exhibit 7).

The key components for Revas body were vacuum formed plastics made by Maini Precision
Products (MPP). MPP put up the infrastructure and the machines that built body panels for

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the Reva. This led to the formation of a new company named Maini Plastics & Composites.
The backbone of the Reva was a precision space frame a complex three dimensional
chassis. With its expertise in welding, MMM set up a chassis division and a painting
division to service RECC.

As the entire concept of the making of an electric car and its components was new, the
suppliers refused to make and deliver even small mechanical components. The Maini group
invested heavily in the Pro/Engineer (Pro/E) parametric design software platforms, which
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was later put into use by Reva. The Maini group provided complete support by handing
over the entire factory with all its facilities to the Reva team.

HISTORY OF REVA

In 1956, Sudharshan K. Maini thought of building a small car that would suit Indian
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conditions. His company, Maini Group, which was incorporated in 1973, supplied high
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precision automotive components to its clients. MMM, which Sudharshan established in

1984, manufactured electric golf carts, airport vehicles and forklift trucks. Eventually, the
Maini Group earned the recognition of manufacturing automotive components and battery
operated material-handling equipment and was the first company in India to do so.
However, the first Reva car was released in the market only in 2001(Exhibit 8).
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Reva was launched when the sales of EV were at an all-time low. Hence, Reva invested in
new technologies and a series of innovations. Right from the time of its launch in India, the
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government, corporates and opinion makers were interested in the concept car Reva. Over
the years, Reva won several awards for its innovation as it was the result of a synergy of
talent, determination and capability. With the Maini Group well established in India and the
emerging middle class seeking mobility in the city with less capital investment, Chetan was
confident that India would be a great market for launching the small electric car. A deal was
inked in 1994 between the Maini Group of Bengaluru and Amerigon of California to market
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electric cars in India (Exhibit 9). The first market survey conducted in five Indian cities was
very positive and the consumers preferred a two-seater electric car with room for two small
children. However, there were concerns about the performance of the car and the charging
of batteries.

Based on consumer feedback, the first few cars were made in California. Chetan headed the
team from India which worked on building the electric car. About 250 kilograms of
materials such as steering racks, suspension brakes, door handles and wiper blades were
taken from India to ensure that Indian-made components were used. This ensured supplier
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5 of 18 IIMA/PROD0314

connectivity while manufacturing in India and time saving during the testing process.
Within a few months, both, the Maini Group and Amerigon had spent over USD 1 million
approximately to develop the prototype. At this juncture, funding became an issue in the
manufacture of electric cars.

In 1998, the top management of Amerigon discontinued the collaborative work with the
Maini Group. This was a setback to Sudharshan because Amerigon had started working on
a climate control seat based on the solid state heating and cooling technology. Later, when

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Lon founder of Amerigon returned to the company, RECC commenced the designing and
manufacturing of compact electric vehicles. The entire production was shifted to India and
started work in a shed with 30 employees.

CHALLENGES FACED BY REVA

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Reva was officially launched in 2001 in New Delhi, the capital of India. Reva went through a
series of issues during the launch period. Just before its launch, there was an unexpected
blow from the government. The Indian government increased the tax on electric vehicles
while reducing the same on petrol vehicles. Consumers were hesitant to adapt to electric car
technologies as globally these had not been very popular and Reva as a company was little
known in the automotive market. As a benchmark for comparison, Indians preferred high-
volume small ICE engine vehicles.
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Chetan thought that due to narrow roads and lack of parking spaces, middle class Indians
would prefer smaller cars which were easy to navigate in congested cities. Later, he realised
that in India, a car was viewed as a status symbol, and the bigger the car, the higher the
status accorded to its owner.

Across the globe, battery technology had not evolved with the usage of lead acid variants.
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The weight of the battery affected the cars range and speed due to which the production
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department had to compromise on the cars interiors and make it lightweight. Based on
consumer feedback, all Reva cars were made air conditioned. In the earlier models, air
conditioning had been optional. Consumers faced issues with electric chargers which were
later rectified. The company was more reactive than proactive in its components and
features as the product was novel in the market and consumers were comparing electric cars
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with petrol cars. After the new product launch, RECC was more focussed on technology
than on creating a strategy about how to reach the consumer by creating awareness among
them about eco-friendly cars. In addition to these issues, the lack of a campaign and lack of
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advertising led to the hampered sales of Reva.

By 2006, peoples sentiments in the global scenario had changed for good. Global fuel prices
went up and consciousness about emissions related to automobiles increased. The book by
Al Gore on The Planetary Emergency of Global Warming An Inconvenient Truth created a
ruckus in the market and things seemed to be working well for Indias electric car Reva. The
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next generation Reva, developed in 2006, had incorporated many of the features developed
in the Next Gen UK car back in 2003, with curved windshields, disc brakes and leather seats.
The key new technology AC drive-train, provided higher top speed and better acceleration.

GLOBAL MARKET

A group of entrepreneurs called Leaders Quest visited the production facility of Reva in
2002. Impressed by the plant, they agreed to import Reva in the UK (United Kingdom)
under the company name GoinGreen. Reva was launched under the new name G-Wiz. In
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6 of 18 IIMA/PROD0314

order to suit the local conditions and standards of the UK, about 134 changes were made in
the car. The launch price of G-Wiz in London was about INR 4.2-4.9 lakhs1 approximately.
Ken Livingstone, the then mayor of London, exempted G-Wiz from the congestion charge
levied on cars coming into the city centre on weekdays. Free parking and charging were
provided in central London. RECC had a remarkable working experience with GoinGreen. It
helped them understand the European market and gave a new perspective to the business.
Reva sold cars online without a single paper ever being printed. GoinGreen successfully
sold 1200 G-Wiz cars over a period of seven years.

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In 2007, G-Wiz had to face an unforeseen challenge from the government of the UK. The
Department of Transport, UK decided to review the safety regulations of vehicles like G-
Wiz. These vehicles fell into the category of quadricycles due to the fact that they were
lighter and ran on low speed. In accordance with the same, a crash test was conducted on
the vehicle and G-Wiz failed in the test. Photographs of the damaged G-Wiz were flashed

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across the front pages of the newspapers and other media by the popular magazine Top
Gear. As the reports of the crash test had not been positive, the sales of the vehicle dropped.
A year later Revai was launched with a more powerful AC drive-train and other safety
features leading to increased sales in Europe. The company exported Revai to countries like
Spain, Japan, Cyprus, Portugal, Iceland and Norway (Exhibit 10).

GROWTH TRAJECTORY
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After the launch of Revai in 2008, future models of NXR and NXG were launched at the
Frankfurt motor show in 2009. In a period of two years, over 3,500 cars were sold across the
world. Though Reva had the technical expertise to bring out innovative products to the
market, the company needed financial support for mass production. As the company was
struggling for finance, in 2010, Mahindra & Mahindra (M&M) stepped in and acquired
55.2% of Reva with the promoters holding 31% in Mahindra Reva Electric Vehicles Private
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Limited.
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MAHINDRA GROUP ENTERS

Founded in the year 1945, M&M entered automotive manufacturing in 1947. M&M believed
in a business model of creating empowered companies that enjoyed the best of
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entrepreneurial independence and group wide synergies. It was a USD 16.5 billion
multinational group with more than 200,000 employees in over 100 countries across the
globe. With a presence in 18 key industries including aerospace, defence, energy, farm
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equipment, information technology, retail, logistics and automobiles, the company believed
in commitment to sustainability.

The electric vehicle category was considered by experts to hold a lot of potential as a concept
to promote clean air technology. M&M got hold of the better platform on the technological
aspects for EV vehicles by acquiring Reva. M&M owns 55.2% equity in Mahindra Reva by a
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combination of equity purchase from the promoters and a fresh equity infusion of over INR
45 crores into the company (Source: http://www.mahindra.com/news-room/press-
release/1294055714). The company bet on alternative fuel development that could give it the
cutting edge to compete in a highly competitive global market place.

1
10 lakhs = 1 Million
1 Crore = 10 Million
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Under the new management, Mahindra Reva launched Mahindra e2o (previously Reva
NXR) an urban electric car hatchback in 2013. The car was priced at USD 11,000 and got a
29% subsidy from the Government of India during its launch. The subsidy was later
withdrawn. The car was priced at USD 11000. e2o has ~16% lower CO2 emissions that
petrol, ~33% lower than diesel even after accounting for emissions from electricity
generation system in India. (Source: http://www.cseindia.org/userfiles/cngfuture_pdf.pdf)

At the time of launch, there was no central government subsidy available for electric

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vehicles in India. However, the State Government of Delhi provided subsidy to vehicles
registered to owners residing in Delhi State. In November 2010, the Government of India,
through the Ministry of New and Renewable Energy (MNRE), announced a subsidy of INR
950 million for electric vehicles. The subsidy provided benefits of up to 20% on the ex-
factory price with a maximum benefit of INR 100,000 on electric cars. This scheme ended on
March 31, 2012. Effective April 1, 2015, the Faster Adoption and Manufacturing of Hybrid

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and Electric Vehicles (FAME) scheme was brought in by the Government of India.

A new plant with an annual production capacity of 30,000 vehicles in Bengaluru was set up.
It was considered to be the largest operational example of a plant specifically dedicated to
the assembly of battery electric vehicles. Mahindra e2o added new features of telematics and
mobility solutions in alliance with the telecom major Vodafone.
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For a technologically sound product like Reva e2o, in order to become commercially
successful, three supporting pillars were required. These pillars, namely, markets,
government and industry would play complementing roles. Each of the components would
operate with a different goal, but with cooperation and commitment, the chances of success
would be higher.
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Market
Price & Fuel economy
Performance
Comfort
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Government
Industry
Society Impact
Profit
Fuel Economy
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Industrial
Global Leadership
Environment
Public Image
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Factors like fuel economy, performance and global environment worked in the favour of the
e2o. If the government had provided subsidies to the buyers with the support of the
industry to produce innovative electric vehicles, the markets would have definitely reacted,
with more consumers switching to eco-friendly vehicles.

FUTURE ROAD MAP OF REVA

According to industry experts and environmentalists, EVs as a concept had a bright future
as consumers became more environment conscious. They preferred to drive eco-friendly
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cars. To help drive the vehicle for a longer distance on a single charge, battery companies
invested heavily in research and development to manufacture less expensive batteries. Huge
infrastructural requirements of fast charging stations were required as the sales of electric
vehicles increased. Mahindra Reva as a company would benefit more in the event of
competition picking up in this space. The company looked at introducing battery operated
vehicles for various companies fleet vehicles which plied within the city. With increasing
demand within the country for oil and its increasing prices, electric vehicles would be the
best solution forward for India.

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Exhibit 1

Comparison of BEV, HEV and FCEVs

Type of EVs Battery EVs Hybrid EVs Fuel Cell EVs
Propulsion Electric Motor Drive Electric Motor Drive Electric Motor Drive
ICE
Energy System Battery Ultra Battery Ultra capacitor Fuel cells
capacitor ICE Generating Unit

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Energy Source Electric Grid Charging Gasoline Station Hydrogen Methanol or
and Infrastructure facilities Electric Grid Charging Gasoline
facilities Ethanol
Characteristics Zero Emission Very low Emission Ultra-low Emission
Independence on Oil Dependence on Oil Independence on Oil High
100-200 KM Range Very long Range Energy Efficiency Very High

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High Initial Cost Complex Cost Under
Commercially available Commercially available Development (2001)

Major Issues Battery management Managing Dual Energy Fuel Cell Cost
High Performance Sources Fuel Processor
Propulsion Dependence on Driving Fuelling System
Charging facilities Cycle
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Battery Cycle and
management
Source: C.C. Chan, State of the Art of Electric and Hybrid Vehicle, Proceedings of IEEE, Vol 90, No 2, pp247-
275.
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Exhibit 2
Growth of Human population

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Source : C.C. Chan, State of the Art of Electric and Hybrid Vehicle, Proceedings of IEEE, Vol 90, No 2, pp 247-
275.

Exhibit 3
Growth of population and Vehicles
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Source: C.C. Chan, State of the Art of Electric and Hybrid Vehicle, Proceedings of IEEE, Vol 90, No 2, pp 247-
275
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Exhibit 4

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Source: C.C. Chan, State of the Art of Electric and Hybrid Vehicle, Proceedings of IEEE, Vol 90, No 2, pp247-
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275.

Exhibit 5
Classification of HEVs
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(Source: C.C. Chan, State of the Art of Electric and Hybrid Vehicle, Proceedings of IEEE, Vol 90, No 2, pp247-
275)
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Exhibit 5 shows the four classifications of an HEV. This is essential to understand the technological
changes that are happening in the EVs.

Fig (a) is an example of a series hybrid system.

Figure (b) is a series parallel hybrid system.

Figure (c) is a parallel hybrid system.

Figure (d) is a complex hybrid system.

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Exhibit 6
Classification of HEVs

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Source: C.C. Chan, State of the Art of Electric and Hybrid Vehicle, Proceedings of IEEE, Vol 90, No 2, pp247-
275
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13 of 18 IIMA/PROD0314

Exhibit 6 shows the different configurations of electric vehicles.

Figure A shows the first alternative which is a direct extension of internal combustion engine vehicles.
The different components are an electric motor (M), a gearbox (GB), a clutch (C) and a differential (D)
by incorporating both gearbox and clutch. The driver can shift the gear ratios and hence can provide
different torque at different speeds.

Figure B shows an arrangement of electric motor, fixed gearing and a differential. We note that this

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configuration is not suitable for an ICEV as the engine by itself without clutch and gearbox cannot
offer different torque at different speed.

Figure C shows a different configuration which is most commonly adopted by modern electric
vehicles. In this concept, similar to the transverse front-engine front-wheel drive of the existing ICEV,
the electric motor, fixed gearing and differential are integrated into a single assembly both at axle

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points at both driving wheels.

Figure D shows a dual motor configuration in which two electric motors separately drive the driving
wheels with via fixed gearing. In this setting, other than the mechanical means, we need the
differential mechanism. In an EV, this can be provided by two electric motors working at two different
speeds. Depending on whether the driver is turning the EV towards the left or the right, the electric
controller changes the speed accordingly.

The configuration E shows the fixed planetary gearing system which is used to reduce the motor
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speed to the desired wheel speed. It should be noted that the planetary gearing is favoured in this
arrangement as it offers the advantage of high speed reduction ratio of the gears as well as inline
arrangement of input and output shafts.

Figure F shows the gearless arrangement in which the outer rotor of the motor is directly mounted on
the wheel rim. This configuration completely abandons any mechanical gearing and the in-wheel drive
can be accomplished by having a low speed outer rotor electric motor inside a wheel. Hence the
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speed control of the motor is equivalent to the control of the wheel speed and also the speed of the
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vehicle.

The above six configurations demonstrate the size and application of different types of EVs. We are
moving from configuration A which was a direct extension of the ICEV to configuration F which is
under technology demonstration or small scale production. The selection of an EV configuration is an
important decision to be taken before the EV is launched. The major criteria for this selection are
based on compactness, performance, weight and cost.
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Exhibit 7
Original Technical Specifications of REVA

1 Type Two door hatchback

2 Payload Two adults plus two children (227 kg)
3 City driving range 80 km
4 Top Speed 65km per hour
5 Charge Time 80% 2.5 hours, 100% in 6 hours

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6 Battery 48 V , 200 amp-hrs, EV tubular loaded acid batteries
7 Operating Cost INR 0.40 per km
8 Length 2638 mm
9 Width 1324 mm
10 Height 1510 mm

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11 Ground Clearance 150 mm
12 Minimum turning radius 3505 mm
13 Wheel Base 1710 m
14 Curb Weight 670 kg/without battery 400 kgs
15 Body Panel material High Impact ABS vacuum formed panels
16 Frame Type Welded tubular steel space frame
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17 Suspension Mcpherson Strut [front]
Solid axle with coil over springs[rear]
18 Motor High torque [70Nm] separately excited DC motor
5 KW continuous , 13 KW peak
19 Controller Microprocessor based with regenerative breaking
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20 Charger 220 V, 2.2KW, high frequency switch mode type
Maini, D. S. (July, 2013). Reva EV, India's Gift to the World. Random House India.
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This document is authorized for personal use only by V V S N V PRASAD CHUNDRU, of BITS Pilani till 27th February ,2018. It shall not be reproduced or distributed without express written permission
from Indian Institute of Management, Ahmedabad.

15 of 18 IIMA/PROD0314

Exhibit 8
Chronology of Events

1994 Reva Electric Car Company (RECC) was founded by Chetan Maini, as a joint venture between
the Maini Group of Bengaluru and Amerigon Electric Vehicle Technologies (AEVT Inc.) of the USA.
RECC joined with several automotive experts to develop components for Reva. Curtis Instruments
Inc. of USA developed a Motor Controller specifically for the car. The car had a high-tech power pack
for which Tudor India Limited supplied customized Prestolite batteries. The charger for Reva was
developed by Modular Power Systems of USA (a division of TDI Power). Later, RECC started
manufacturing the charger themselves through a technical collaboration agreement between MPS

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and the Maini Group.

2004 GoinGreen of the UK entered into an agreement with RECC to import REVA cars and market
them under the G-Wiz moniker.

2006 Reva received an additional investment of $20 million from Draper Fisher Jurveston and Global

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Environment Fund (GEF).

2008 A revamped Reva model was launched by name Revai. The company started production of a
Lithium-ion variant called the Reva L-ion in 2009.

2009 At Frankfurt Motor Show, Reva presented its future models Reva NXR and Reva NXG. During
the event Reva and General Motors India declared a technical collaboration to develop affordable EV
for the Indian market. As a result of this General Motors India announced an electric version of their
hatchback in the New Delhi Auto Expo 2010: named e-Spark, Reva was to provide battery
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technology.

2010 India's largest sports utility vehicles and tractor maker Mahindra & Mahindra bought a 55.2%
controlling stake in Reva. Following the deal, the company was renamed Mahindra Reva Electric
Vehicles Private Limited. Mahindras president of automotive business, Pawan Goenka, became the
new companys chairman. As a result of the ownership change General Motors pulled out of the tie-up
with Mahindra Reva that was to produce the e-spark.
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2011 GoinGreen, the UK's exclusive importer of G-Wiz, announced that it was no longer stocking the
model (although it would order them on a 4-6-week lead time when requested by customers).

http://en.wikipedia.org/wiki/REVA. (n.d.). Retrieved November 12, 2015, from http://en.wikipedia.org.

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from Indian Institute of Management, Ahmedabad.

16 of 18 IIMA/PROD0314

Exhibit 9
Memorandum of Understanding between Amerigon of US and Maini Group of India

0.1 Amerigon is a vehicle design, systems engineering, and component supplier to the world
automotive industry. Principal emphasis is on development and production preparation of an
exceptional electric vehicle suitable for final fabrication and sale in India. Amerigon has produced four
generations of electric vehicles that incorporate the best design, system integration, and proprietary
components available in the world. The results are incorporated in the design of a durable, low cost
vehicle with superior performance, manufacturability, and appeal to the rapidly growing Indian middle
class.

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0.2 Maini is a diverse group of manufacturing companies based in Bengaluru, India. Founded 21
years ago, Maini is acknowledged as an innovator in its fields. The Maini Group is managed by
technocrats and is primarily engaged in the manufacture of high-precision automotive components
and assemblies for original equipment customers both in India and overseas. Customers include
Bosch in Europe and General Motors in the United States. Maini also manufactures electrically

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powered material-handling equipment and has developed Chets, Indias first electric vehicle which is
ideal for touring large factories. Chets has been approved and is subsidized by the Government of
India.

0.3 Metropolitan areas of India and the rest of Asia are grappling with the immense problems of
increasing fossil fuel consumption and air pollution. The need to solve these critical and rapidly
growing problems have been recognized by all city corporations, local and federal Governments, and
by a raft of international monitoring agencies. The problem is compounded by rapidly growing
population and standard of living. These factors create an enormous demand for personal use
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vehicles, thus exacerbating already acute problems. India itself has the fastest growing middle class
in the world, with substantial buying power. As an example, in the city of Bengaluru alone, the number
of vehicles is growing by more than 200 every day. About the only long-term solution inside, and one
which has unanimously been deemed as effective by development and environment agencies, is the
introduction of the electric-powered town car.

1.0 Amerigon and Maini intend to collaborate jointly and on a long-term basis, both technically and
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financially, to develop, manufacture, and market electric vehicles primarily for requirements in India
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and other Asian nations. Amerigon and Maini both fully recognized the untapped potential and vast
promise of India and other Asian nations immediately and over the long-term for electric vehicles.
Essentially, compared with conventional vehicles, the EVs need to be produced in modest quantities,
and at low prices, with corresponding affordable tooling and manufacturing costs, yet reflect the
highest level of available technologies in design and function. Given these requirements, the
Amerigon-Maini collaboration ideally matches and complements the capabilities of each entity.
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1.1 Amerigon can supply proprietary critical and sophisticated components and subsystems
developed and manufactured in the US. Amerigon is also recognized as one of the worlds best EV
designers and system integrators. Maini offers the experience and expertise of a highly regarded
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experienced manufacturer possessing very affordable labour, unique facilities, and the ability to cost-
effectively assemble and manufacture EVs in limited quantities. It has the capacity to both directly
produce and readily procure precision and other components within India in accordance with
Amerigons specifications. By combing the existing strengths and existing superior resources
available in the United States and India, the result is a cost-effective and efficient collaboration ideally
suited to meet the needs of the Indian market.
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1.2 Apart from the all-round feasibility and complementing factors of the Amerigon-Maini match, the
result also affords a partnership whereby Amerigon can place into use its developed technologies and
Maini can capitalize on its manufacturing expertise and its respected position in Indian industry. By
doing so, Amerigon will establish ready, long term markets, for its sophisticated high technology
components and Maini will manufacture and sell to the Indian and Asian markets highly desirable,
world competitive EVs.

2.0 Amerigon and Maini will enter a long-term resource collaboration and integration partnership,
each pooling its strengths.
This document is authorized for personal use only by V V S N V PRASAD CHUNDRU, of BITS Pilani till 27th February ,2018. It shall not be reproduced or distributed without express written permission
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17 of 18 IIMA/PROD0314

2.1 Maini will develop and manufacture components, according to a program developed by Amerigon,
and provide highly skilled affordable labour and expertise, as well as the physical facilities for
manufacture of EVs in India. Maini will also provide all local inputs including Market Research Data,
vehicle requirements in India, and testing and marketing. If required, Maini will provide technical
manpower at Amerigon to develop the capability to work the Amerigons and other US companies
components and subsystems.

2.2 Amerigon will provide vehicle design and prototypes, appropriate highly sophisticated and high-
tech components, and in cooperation with Maini, 10 to 15 production prototypes and initially 100
vehicle kits for assembly in India. Amerigon will also source as required, low cost tooling for initial

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vehicle kits.

2.3 Amerigon will continue exporting kits, with Maini providing assembly facilities, staffing, and those
components which can be readily cost-effectively manufactured in India.

3.0 The actual workings of this unique and promising partnership will be discussed in detail,

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commencing soon after the acceptance of this Memorandum of Understanding.

Maini, D. S. (July, 2013). Reva EV, India's Gift to the World. Random House India.
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This document is authorized for personal use only by V V S N V PRASAD CHUNDRU, of BITS Pilani till 27th February ,2018. It shall not be reproduced or distributed without express written permission
from Indian Institute of Management, Ahmedabad.

18 of 18 IIMA/PROD0314

Exhibit 10
Comparison Chart of Reva with top cars in the world

Brand Model Range (miles) Mileage Price (USD)

(miles/gallon)
Ford Electric 76 105 29,170
BMW i3 81 124 43,350
Chevy Spark EV 83 119 25,170

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Volkswagen e-Golf 83 116 35,450
Nissan Leaf 84 114 29,010
Mercedes B-Class Electric 87 84 41,450
Fiat 500e 87 116 32,300
Kia Soul EV 93 120 33,700

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Tesla Model S 270 240 85,000
Mahindra Reva e2o 75 5.84** 15,670
**miles/kWh

Source: CO2 baseline database for the Indian Power Sector, Jan 2012 published by Central Electricity
Authority, Ministry of Power, Government of India
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