Decision Sheet
Date: February 3, 2016
Title of the case: MAHINDRA ELECTRIC MOBILITY LIMITED: THE ELECTRIC VEHICLES
DILEMMA
Topic: Strategic Formulation, Strategic Implimentation, Startegic Evealuation.
Key decision maker/s: MEM’s CEO Mahesh Babu,
Case Facts/ Case Summary:
 vision was “to become a leading brand in providing customised electric
mobility experiences through cutting edge technology.
 Mahindra had acquired Reva Electric Car Co.and renamed the car as
Mahindra Reva Electric Vehical.
 In 2018, MEM joined hands with LG Chem Limited to develop lithium-ion
batteries for its EVs.
 Faster Adoption and Manufacturing of Hybrid and Electrical
Vehicles (FAME)
 MEM had launched four new models, including the award-winning
e2oPlus.
 Ninety five percent of EVs on Indian roads were low-speed electric
scooters powered by lead-acid batteries, whose speed was less than 25
kilometres (km) per hour.
 Lithium also had an advantage over oil because it could be recycled for
future use. Battery price was an important consideration;
 in May 2018 the government proposed setting up EV charging stations
every 3 kilometre (km) in cities with over a million people and every 50
km on busy national highways.
 power-deficit nation like India, India, there would be challenges in
ensuring adequate supplies needed to run EVs.
Problems

Speed of EV is less



The price of the EV are currently high
Range of Ev is low
Charging stations
Problem statement: How should babu analyse the environment and formulate
strategies?
Criteria for an effective solution to the problem identified:
Cost
Time
Customer satisfaction
Brand loyalty
Innovation
Alternatives/options/solutions:
Michal Porter source of compitative advantage
PESTEL
Strategic Mapping
Porters 5 force model
They can enter the automotive spare parts market
Evaluation of Alternatives:
 Either of the alternatives whill help Babu or the MEML to understand the
current market and the environment. This helps them to understand the
market where they can expand. Also build strategies to have a
compitative advantage.
 MSML can initially do an R&D and develop the cars that are Hybrid
which can influence the consumers purchase decision. As consumers are
not completely trusting the EV’s
 MSML can expand its operations into the spare parts of the cars, which
can help them to have an additional compitative advantage. Also help
them generate a good revenue out of it.
Decision/summary/learning:
Hence MSML can do an external environmental analysis and then formulate strategies that
can help them sustain in the compitation. My suggestion will be to have a hybrid varients of
cars initially with a good range then when customers build a good image on EV’s the can
build complete Electric cars.