“With green solutions trend picking up, opportunities for Reva are boundless”

He grew up with a vision—a vision that all cars on the roads of Bengaluru are powered by electricity. He lived his dream defined by green cars. At a very young age, he set automotive benchmarks that the world followed. He made a tiny, odd-looking electric car, which is now on the roads of Delhi, Bengaluru and 24 countries across Europe, USA and Asia. This ‘made-in-India’ brand constitutes the largest deployed fleet of electric cars in the world, and made his company the first to successfully commercialise electric cars.

Wednesdayy, November 20, 2013: Meet Chetan Maini, chief executive officer, Mahindra Reva Electric Vehicles. Motivated by a desire to battle climate change, Chetan co-founded the Reva Electric Car Company, India’s first electric car manufacturer, in 1999. He built Reva, which was a rare achievement even by the global standards, and the world recognised it.

In 2009, Chetan was named by Business Week magazine as one of the 50 most influential people in India, and in 2010, he was honoured by AIMA Managing India Awards, as the ‘Entrepreneur of The Year’. He was also adjudged a Young Global Leader in 2011 by The World Economic Forum.

“To achieve what I have done so far, was not smooth sailing all the way. There was a time when I felt that Reva wouldn’t happen because a lot of challenges were coming up. But my dream had to work; hence, it all happened,” says Chetan in a tête-à-tête with Srabani Sen of Electronics Bazaar. So let’s get to know the man better as he takes us back in time and shares his future plans.

My family fuelled my passion

I was born in 1970 in Bengaluru. I have two elder brothers, and I was very close to my mother. I studied at St Joseph’s and Bishop Cottons High Schools in Bengaluru.

Since my childhood, I was always intrigued by automobiles, planes and technology. I loved to dismantle things and put them together. When my friends went out to play, I would sit at home and make remote-controlled cars and planes. At the age of 10, I developed a car that would hit the wall and reverse. That is still my favourite car. I used to go to junk yards to pick up engines to make cars.

Since I spent most of my time working on planes, cars and electronic devices, my father made me a hobby room by covering a balcony at our home. I would spend six hours a day and even up to 15 hours on weekends in that room. I really enjoyed being surrounded by what was my passion.

My father, an entrepreneur, was a great guide and inspiration to me. He was very supportive of my passion, and nurtured my interest. If I didn’t find a particular component in India, he would get it from abroad. When I wanted to build a radio in Class IV, he sent one of his employees, an electrical engineer, to help me make it. In Class VI, I learnt how to model planes with the help of my uncle, a navigation instructor with an airlines company, and one of his students who was an aero modeler. So, my family always fuelled my passion.

My father had quit his job in 1973 and started his own business in automotive components, which picked up quite fast. Starting out with only five people, the hard work he put into his venture was always an inspiration to me. Seeing his business grow was a good learning ground for me. The values he taught me were instrumental in making me what I am today.

I studied for enjoyment

Fortunately, I did very well in school, but I studied what I enjoyed. I remember once reading something which was not relevant for the exam the next day, and one of my friends was very curious to know why I was not reading the subject concerned. So I told him that I am reading what I enjoy learning, and don’t care about exams.

My parents used to take us to different places in India for vacations. So a lot of my learning was through experience. Once my history teacher got frustrated because I wrote about a historical place based on my experience and not on what the book said. Sometimes, during my activity periods in school, I used to fly planes and teach other students as well. My school also offered me an outlet for my interests.

My passion became a reality at university

My passion pushed me to get into a university that would help me in brushing up my skills further. So, in 1988, I went to the University of Michigan, USA, to do my bachelor’s degree in mechanical engineering with a focus on solar electric vehicles. It had excellent labs, and socially, academically and technically, the university proved to be a great learning ground.

My interest in electric vehicles began at the University of Michigan, where I was in the solar car team and we won the General Motors (GM) Sun Race in the US in 1990. It was at that point when the idea of a cost-effective electric car came to my mind, and that was a turning point in my life.

When GM sponsored us to go to Australia, I took a semester off and worked on the solar car that we drove across Australian deserts; we bagged third position after Honda. Racing 3000 km across Australia without burning a drop of petrol inspired me to focus on creating affordable zero-emission mobility solutions through advanced technologies.

At that time, oil was cheap unlike now and nobody cared about climate change. But I had understood even then that solar energy was the future, but knew that business in solar would take a lot of time. So the thought of developing an electric vehicle struck me. I could then see that 10 years down the lane, electric cars would be in demand.

My first stint in making electric cars

After we won the GM Sun Race, my solar-car buddies and I thought about starting a company to make electric vehicles. We approached my mentor, Dr Lon Bell, a technologist and the father of one of my friends. He liked the idea so much that he started Amerigon Incorporated in California in 1991. At Amerigon, I worked on electric cars. While I was working there, I realised that the confluence of software, electronics and mechanics was very high in a car design. I was a mechanical and automotive engineer, but I always had an inclination towards electronics. So I thought of combining electronics, mechanical and automotive engineering, and pursued a master’s degree from Stanford University with a lot of focus on electronics, where my thesis was on hybrid electric vehicles. That helped me technically to get a good understanding of electronics.

I worked with Dr Lon Bell before joining Stanford University, and after the completion of the course, I joined him full time in 1994.

My dream project Reva almost bombed

In 1994, I had started work on Reva as a joint venture project between the Maini Group and Amerigon. Our sole aim was to develop and produce an affordable compact electric car. Several other automakers were also aiming to do so. We started with just three-four people, but gradually developed to a team of 20. This team built the core technology—from design and software to electronics.

It had been very exciting at different levels. From 1995-1999, I was busy developing the product, particularly working on its electronics. I had also started understanding the Indian market and consumer requirements.

In the 1990s, the US government encouraged the making of green cars and a number of start-ups were launched. But suddenly, in 1997, California did not mandate a regulation that would have ensured that 2 per cent of all vehicles sold in the state would have to be zero-emission vehicles. The decision spelt doom for the electric vehicle industry, and all the start-ups, including Amerigon’s electric vehicle business, had to shut shop.

That was a tough time. I believed that Reva would never happen. So I returned to India in 1999, where my family welcomed me with open hands. They stood by me and did not let me give up on my dream. In the same year, I founded Reva Electric Car Company. However, the situation was not that simple—I realised that I soon had to change my hat—from a technology expert to an entrepreneur. I had no knowledge about business, didn’t know how to chase financial organisations for funds, and had no clue about how to market the project.

This phase was more challenging, and I was just 29. I had to work hard to get financial assistance from banks because they had apprehensions lending to a young man who was making an electric car. They would ask me who else in the world had done it. Similarly, when I approached the Indian government, I was disappointed since they didn’t have any regulations to get my car certified. So there were challenges at every front, be it technology, finance or human resources.

Since I believe that nothing can stop you if you have faith in your dream, I decided to take my new role as an entrepreneur very seriously. I spent three days with one of my boss’ friends, who was a Harvard Business School graduate and who taught me about business. At this stage, the lessons I had learnt from my father were also very useful.

That was a very exciting year. Reva became a an emotional and financial commitment for me and my family. I received amazing support from my father and brothers. They always stood beside me.

The making of Reva

In 1995-96, while I was still in the US, the design of Reva had started. It was a two-fold challenge—to design Reva at a low cost, and to design it to be low-cost. Also, since our investment was low, we knew that it would sustain. So a lot of new concepts were developed to make Reva cost-competitive. We used the rolling chassis model unlike the conventional fixed assembly line. Wheels were fixed on to the chassis, which moved from station to station for assembly.

I always focus more on my weakest areas. I realised that I didn’t know anything about the body of the car, so I put all my energies into learning more about it. Over a short period of time, I absorbed that knowledge like a sponge.

I then focused on educating my people, as knowledge about electrical car was globally low. So I spent days talking to them about electric cars, training them and building up their capabilities. It was all about acquiring a product development culture. Product development was then new to India, hence, the education was important. It was all about learning how to develop a product, how to take the responsibility and, how to manage it end-to-end. Once they understood my expectations, it was astonishing how they could get things done. This helped me tremendously as such a complex project was completed in just two years—two years of tremendous hard work, almost 16-20 hours a day. Finally, the first Reva rolled out in 2001. For the next few years, till 2008, I was focused on marketing, sales, and PR work.

We built a new supply chain of components. Also, India didn’t have any regulation for the electric cars and we worked with the government to form these regulations. This was the second phase of my career, which was more of becoming an entrepreneur.

Initially, I faced a lot of scepticism, as people in India were not ready for an electric car. They did not take us seriously and would test drive the car for fun. But I was still not disheartened, as I strongly believed in this project.

Since then, the scenario has undergone changes. Worldwide, governments, automotive manufacturers as well as customers have started talking about pollution, climate change and auto emissions. There are concerns about rising fuel costs and shortages. Globally, there is a buzz about fuel-efficient technology, as well as hybrid and electric vehicles.

Reva’s launch in London set a new trend

Marketing the product in global markets was another challenge. In 2004, when Reva car was up for sale in UK, it quickly gained popularity. Branded as ‘G-Wiz’ there, soon about 1000 cars were on the roads—probably the highest number of electric cars sold in any city. Electric vehicles in London were exempted from tax, and car owners could avail free parking and charging of the car. Several charging stations were set up across the city. London not only started the trend of electric cars, but also encouraged other manufacturers to produce similar cars. There are now more than 50 electric vehicle models worldwide.

Things began changing in 2006, when we received an investment of US$ 20 million from Draper Fisher Jurveston and Global Environment Fund to grow Reva globally. At the Frankfurt Motor Show 2009, we launched a four-seater family car, the Reva NXR, and a two-seater sports car—the Reva NXG. We felt proud as we were the only Indian company participating there and showcasing new technology. We got an overwhelming response from the customers as well as the media.

This success gave us immence confidence. During this time, we partnered with GM India to bring out a battery-powered version of GM’s Chevrolet Spark. We set up a new plant in Bengaluru with a capacity of 30,000 vehicles. The plant follows the Indian Green Building Council guidelines, as I wanted to set a benchmark.

When Mahindra came on board…

The next big development happened in 2010 when Mahindra came on board. At that time, a number of global companies were getting into the electric vehicle business and the competition was increasing. So we thought that we needed a strong partner to grow the business. In 2010, we joined hands with Mahindra. Although, I was pretty emotional about handing over my baby, but it was time to take the project to the next level. I spent some time thinking about the proposal, and the vision to see the roads full of electric cars kept coming back. With this partnership, this vision would come true faster, and so I thought it was the right thing to do. Also, Mahindra’s vision of sustainability matched mine.

In May 2010, Mahindra Group acquired a majority stake in the company, which was renamed as Mahindra Reva Electric Vehicles Pvt Ltd. Today, Mahindra Reva has one of the world’s largest deployed fleets of electric cars in 24 countries. The company produces its own cars, licenses out its electric vehicle technologies, electrifies existing platforms, and helps to deliver integrated zero-emission mobility solutions.

Indian govt needs to address many issues

The Central government, through the Ministry of New and Renewable Energy (MNRE), had provided a subsidy of Rs 100,000 on purchase of electric car. However, this subsidy ended on in March 2012.

In January 2013, the Indian government announced a new plan to provide subsidies for hybrid and electric vehicles. The plan promised subsidies up to Rs 150,000 for cars and Rs 50,000 on two wheelers. Prime Minister Manmohan Singh launched the national electric vehicle plan to help accelerate consumer adoption and domestic manufacturing of low carbon transport in India, and announced an investment of Rs 230,000 million. This is a very positive step. But there are many challenges that have not been addressed. Only Delhi offers a subsidy on electric vehicles. Why can’t the other states also offer the same?

Reva in a new avtaar

Today, when I look back, I feel happy that we are one of the few electric vehicle companies that are still in this business after 15 years. Around 300 electric vehicle companies have already shut down during this period.

We now have 5000 Revas on the road, and we have launched a new model a couple of months back. While the first Reva car was designed in the 1990s, the new model is entirely different from the styling point of view. It’s much bigger and technically more powerful. It has the latest battery technology, which has three times more life and power. Reva’s battery can be charged in a shorter time now. New features like navigation and solar charging have been added, and the car can be remotely serviced. Electric vehicles have not been able to catch the attention of the Indian customers too much. Now, there is a plan to allow customers to hire and drive the vehicles to highlight their affordability and eco-friendliness.

To make the concept of an electric car more popular in India, Mahindra Reva has recently tied up with the country’s largest cab company, Carzonrent, to offer self-drive options in Delhi, Mumbai and Bengaluru. To start with, five electric cars would be available in each of these cities, which can be booked over the phone like any other cab.

Five years down the lane…

We are a tech company that goes beyond developing products. Our next level of plan is to take our vision forward—the vision of the ‘future of mobility’ which encompasses the ‘5Cs’ framework of clean, convenient, connected, clever and cost-effective vehicle technology. This could well shape the way people commute in the 21st century.

We have developed licensable technology, a completely green manufacturing plant, and are looking to create an entire green ecosystem integrating energy sources, supplies, and charging stations. We also want to explore opportunities in various markets for expanding, like franchised manufacturing.

I see a future where Reva plays a role in five business areas—product, technology, manufacturing, ecosystem, and mobility solutions. In terms of product, technology, and manufacturing, we have already seen significant progress. New electric vehicles will continue to be developed and technology will continue to be licensed. We have already created a green manufacturing facility that can be replicated globally.

Now, our focus will be to create an ecosystem surrounding the electric car that will provide complete mobility solutions. Our vision is to create an ecosystem complete with clean energy sources, distribution, and charging stations. Reva, therefore, holds the potential to change the way we think about mobility entirely.

Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine