market research report : electric vehicle market in india 2013

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Electric Vehicle Market IndiaElectric Vehicle Market – India

April 2013

Executive Summary

Market Indian electric vehicle market is expected to reach INR a6 mn units in 20‐‐‐‐‐‐, growing sharply at a CAGR of x%, from INR a1 mn units in 20‐‐‐‐‐

Segment 2 accounts for ~b2% of the electric vehicle market

Drivers: Ch ll

Drivers & Challenges

Drivers:

• Government Initiatives

• Rise in Fuel Costs

• Low Operating and Maintenance Cost

• Foreign Dependence for Crude Oil

Challenges:

• Low Vehicle Performance

• Inefficient Battery

• Price Constraint

• Power Shortageg p

• Environment Friendly

Government i i i

Alternate Fuels for Surface Transportation Programme (AFSTP) National Electric Mobility Mission Plan 20‐‐

• Demand Generation

Power Shortage

• Lack of Infrastructure

T d Entry of New Players

Initiatives • Demand Generation• Research and Development• Manufacturing Incentives• Infrastructure Development

Competition

TrendsEntry of New Players Retro Hybrid Fitment Kit

Major Players

2ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

CompetitionCompany A Company B Company C Company D Company E

•Macro Economic Indicators

•Introduction

•Market Overview• Electric Vehicle

• Major Segments• Major Segments

•Market Analysis

•Drivers & ChallengesDrivers & Challenges

•Government Initiatives

•TrendsTrends

•Competitive Landscape

•Strategic Recommendations


g

•Appendix

Macro Economic Indicators (1/3)

INR tn

ay4z4y3

x2x1

GDP at Factor Cost: X

b

c

d

k4z3

k3

x2y2

z2

k2

x1y1

z1

k1

eQ‐Q‐Q‐Q ‐

20‐‐20‐‐20‐‐20‐‐

Inflation Rate: Y

%

f

g

a3a1

g

h

i

j

a5a4a2

4

k20‐‐20‐‐20‐‐20‐‐20‐‐

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

SAMPLE Electric vehicles are battery operated vehicles, primarily categorized into four different types

• Electric vehicles are propelled by an electric motor (or motors) powered by rechargeable battery packsoAvailable in various segments across the globe ranging from bicycles to cars three wheelers to heavy commercial vehicles

Electric Vehicle – Introduction

oAvailable in various segments across the globe, ranging from bicycles to cars, three wheelers to heavy commercial vehicles

Electric drive train primarily consists:

Component 1 Component 2 Component 3 Component 4Component 1 Component 2 Component 3 Component 4

Types of Electric Vehicles – Technology‐wise

Battery Electric VehiclesPlug in Hybrid Electric

VehiclesHybrid Electric Vehicles Fuel Cell Electric Vehicles

• Description 1 • Description 2 • Description 3 • Description 4


BEV PHEV HEV FCEV

Targeted fuel savings and reduction in pollution within 20‐‐will ensure a sustained growth of the electric vehicle market

Market Overview – Electric Vehicles

• Electric vehicle market in India is at a nascent stage, providing huge untapped market potential for the players to capitalize upon

•Market comprises of segment 1, segment 2, segment 3 and other types of vehicles Currently, segment 2 dominates the market accounting for b1% of the overall electric vehicle sales in India

• Greater adoption of electric vehicles will aid in bringing down the level of pollution along with significant fuel savings inthe country Government support in four primary categories namely demand generation, research and development, manufacturing incentives and infrastructure development, will create an economically feasible and self sustaining electric vehicle market in the coming years

Market Share – Segment‐wise (20‐‐‐‐‐)Market Size & Growth Market Share – Segment‐wise (20‐‐‐‐‐)Market Size & Growth

mn units

a a63%

1%1%

Segment 3

Segment 2

Segment 1

b

c

+x% a5

a4

a3a2

a195%

Others


d

20‐‐‐‐e20‐‐‐‐‐e20‐‐‐‐‐e20‐‐‐‐‐e20‐‐‐‐‐e20‐‐‐‐‐

95%

Supply Chain Cost Comparison – Electric Vehicle vs. ICE Vehicle

Research and D l t

Assembly MarketingComponent P d ti

Sales and Di t ib ti

After Sales S i

Vehicle Lifecycle Cost Comparison – Supply Chain Wise

Developmenty g

Production Distribution Service

a

b

c

d

a4%a3%

d

e

f

g

a10%a9%

a6%a5%

h

i

0

a12%a11%a8%a7%a2%a1%

ICE vehicleElectric Vehicle (High Volume)


( g )

> Accounts for ~x% of vehicle lifecycle cost for a 4W

Segment 1 to witness phenomenal growth with increasing consumer acceptability and government support Market Overview – Segment 1

120,000

units

a6

• Segment 1 has huge potential in India wherein consumers have higher preference for Technology1

Market Size & Growth

40,000

60,000

80,000

100,000+x%

a5

3a4

Segment 1 electric vehicles Major auto players such as company A, company B and company C are evaluating the electric car market

• Government support for demand creation coupled with improvements in technology and infrastructure will drive

Consumer Preference – Electric Vehicle Technology‐wise

0

20,000

20‐‐‐‐‐ e20‐‐‐‐‐ e20‐‐‐‐‐ e 20‐‐‐‐‐ e20‐‐‐‐‐ e

a3a1

20‐‐‐‐‐

a2improvements in technology and infrastructure will drive this segment

Consumer Preference – Electric Vehicle Technology‐wise

Share of Consumers prefer Segment 1 than ICE

Others 32%‐‐33%17%‐18%

Preference for Technology 1



70%‐75% 25%‐30%

50%

Poor pick up, low top speed and battery replacement issues are restricting the adoption of


Technology 3 type Segment 1 electric vehicles

Matrix of Key Challenges to Electric Vehicle Adoption –Segment‐wise

Finding 1

Comparative Factors 4W 2W 3W LCV Bus Ranking

Factor 1 1

Factor 2

Factor 3 3

2

Factor 4 4

3

SAMPLE Factor 5 5


Drivers & Challenges – Summary

h llChallenges

Low Vehicle Performance

Inefficient BatteryDrivers

Government Initiatives

Rise in Fuel Costs

Price Constraint

Power Shortage

Low Operating and Maintenance Cost

Foreign Dependence for Crude Oil

Lack of Infrastructure

Environment Friendly


Government initiatives and subsidies to emerge as a major growth…

ImpactGovernment Initiatives (1/3)

• Finding 1

• Finding 2

• Finding 3

• Finding 4 Sub‐finding 1

Sub‐finding 2

• Finding 5

x% Subsidy on base price

Refund of road tax and registration charges

y% exemption on VAT


Alternate Fuels for Surface Transportation Program was adopted to…

Alternate Fuels for Surface Transportation Program (AFSTP) (1/3)

Scheme Adoption

•AFSTP was announced in Nov 20‐‐ and was run by the Ministry 1

•Government had allocated INR x mn to provide financial incentives during 20‐‐‐‐‐

OEM i d i i h O i i 1 i d b fi f hi h•OEMs were required to register with Organization 1 in order to benefit from this scheme They had to provide a minimum y year warranty period along with setting up z service stations across country 1

Manufacturers sold the electric vehicles at a subsidized rate to the customers and later claimed a refund from the government

Targets and Incentive Layout (FY20‐‐ and FY20‐‐)

Electric Vehicle – Segments Type of Vehicle Target ( no. of vehicles) Assistance per vehicle

Cap on Incentivesvehicle Incentives

Segment 1Type 1 a1 b1

z% ex‐factory cost of vehicles

INR c1

Type 2 a2 b2 INR c2

Segment 2 Type 3 a3 b3 INR c3


vehiclesSegment 3 Type 4 a4 b4 INR c4 mn

Segment 4 Type 5 ‐ ‐ INR c5 mn

NEMMP 20‐‐ to support the long term growth and development of the domestic electric vehicle market

National Electric Mobility Mission Plan 20‐‐ sets the future outlook and objective along with laying down the pathway

National Electric Mobility Mission Plan 20‐‐ (NEMMP 20‐‐)

National Electric Mobility Mission Plan 20‐‐ sets the future outlook and objective along with laying down the pathway for accomplishing considerable penetration of electric vehicles (including hybrids) in India by 20‐‐

•NEMMP 20‐‐ has been approved by the Organization 1 on xth Aug 20‐‐ with a target of producing z mn green vehicles by 20‐‐, out of which z1‐z2 mn are expected to be type 1 vehicles

• Total investment required over the next f years: INR a1‐a2 bn

•Government plans to provide d% of the resources with an investment of INR b1‐b2 bn and the remaining should come from the industry for developing infrastructure and encouraging the use of environment friendly electric vehicles

SAMPLEBenefits

B fi R l

13

SAMPLE ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Benefits Results

NEMMP 20‐‐ – Potential Roadmap for Hybridization/ ElectrificationElectric Vehicle Penetration

“Analysis 3”

“Analysis 4”

Finding 1

3 Point 3

Analysis 3Finding 1

3. Point 3

“Analysis 2”

Finding 2

SAMPLE2. Point 2

SAMPLE

4. Point 4

1. Point 1


20‐‐ 20‐‐ 20‐‐‐‐‐ 20‐‐

Year“Analysis 1”

NEMMP 20‐‐ has been broadly categorized into four primary focus areas

NEMMP 20‐‐ – Key Areas

Function 2Function 1

Research and Development

Demand Generation

Focus A

Manufacturing Incentives

Infrastructure Development

Areas

Function 3Function 4 SAMPLE15ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

SAMPLE

Projected Demand in India (20‐‐e) – Electric Vehicle Technology‐wise and Segment‐wise

Electric Vehicle Technology

Electric Vehicle Segments

Technology 1 Technology 2 Technology 3

Segment 1 Segment 2 Segment 3

Total Potential Demand for

Electric Vehicles (20‐‐e)Electric Vehicle Segments

Potential Demand for Electric Vehicles (20‐‐e)

( it )

Segment 1 Segment 2 Segment 3

a1‐a2 a3‐a4 a5‐a6 a7‐a8(mn units)

• Finding 1

• Finding 2 SAMPLEFinding 2

• Finding 3

• Finding 4 SAMPLE 16ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

SAMPLEHigh Priority R&D Area for Electric Vehicle in India (1/2)

SAMPLE B C ll

Technology Ranking – Priority‐

wise

BMS

Battery Cell

• Finding 1

a1

Power Electronics

BMS• Finding 2

Sub‐finding 1

Fi di 3

a2

El t i M t

Power Electronics(Hybrids)

• Finding 3

Sub‐finding 2

Sub‐finding 3

a3

Transmission System

Electric Motora4

5


Transmission System(Hybrids)

a5

Phased manufacturing strategy for electric vehicles in India

•Finding 1• Finding 2• Finding 3 SAMPLEg

Phase 1Condition 1 Initiative 1Strategy 1

SAMPLE

Phase 2

Year xCondition 1 Initiative 1Strategy 1

Phase 3

Year yCondition 2 Initiative 2Strategy 2

Phase 3

Year zCondition 2 Initiative 3Strategy 3


Phase 4> Year q

Condition 2 Initiative 4Strategy 4

Charging Infrastructure Associated Key Findings – Electric Vehicle Segment‐wise (2/4)

Share of consumers

Two Wheelers

Sh f id i h f ll iShare of consumersconsidering technology 1 scooters to be worse than ICE (based on

range)

Share of consumers considering the following parameters to be a key barrier for adoption

50

%

a4a3a2a1

Share of consumers considering technology 2 bikes to be worse than ICE (based on range) Segment 2Segment 1

54%46%

0

10

20

30

40a6a5

54%46%

0

Charging Infrastructure

Charging TimeRange

Sensitivity

SAMPLEy

• Sensitivity 1

• Inference 1

19

SAMPLE ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Infrastructure needed to support the power requirement of electric four wheelers by 20‐‐

Four Wheelers

Scenario II – HG/HEV Scenario III – HG/HEV/BEV

SAMPLE Assumption 1 leading to Finding 1 Assumption 2 leading to Finding 2SExtra Power Generation

Required 20‐‐(with x% peak charging)

a1 MW

Charging Infrastructure

Extra Power Generation Required 20‐‐

(with x% peak charging)a2 MW

Charging InfrastructureCharging Infrastructure Investment 20‐‐ INR b1 bn

Share of Total no. of Charging Terminals (20‐‐)

Charging Infrastructure Investment 20‐‐ INR b2 bn

Share of Total no. of Charging Terminals (20‐‐)

20‐‐ tt1 t2 t3

Type 3Type 2Type 1

20‐‐ cc1 c2 c4

Type 3Type 2Type 1in ‘000 in ‘000


Total Proposed Investment under NEMMP 20‐‐ – Electric Vehicle Segment‐wise (1/4)

Segment 6Segment 5Segment 3Segment 2Segment 1t6

Total Proposed Investment (INR bn): Scenario II – HG/HEV (Lower Limit)

t1

t2

68%

52%

t4

60.6%

7%

68%

33%

5%

t3 89%

t5

45.5% 20.3%

7.4%

4W

6%10%

10%%

2W

10% 4%8% 8%

80%

3W LCV

2%5%

4%

Bus

8.2%0.5%

0.5%

45.5%

Total

7.6%4.0%


4W 3W

Trends – Summary

Entry of New Players

Retro Fitment Hybrid Kits

Key Trends


Competitive Benchmarking (1/5)

Public Trading Comparables (FY 20‐‐)

Company A Company B Company C

Market Capitalization (INR mn) ‐ ‐ ‐

SAMPLEShare Price (INR) ‐ ‐ ‐

SAMPLE EV/EBITDA (x) ‐ ‐ ‐

/EV/Revenue (x) ‐ ‐ ‐

PE Ratio ‐ ‐ ‐


Public: Domestic Company – Company A (1/4)

Company Information Offices and Centres – India

Corporate Address Company Address

Tel No. +91‐xx‐ yyyyyyyyyTel No. 91 xx yyyyyyyyy

Fax No. +91‐ww‐zzzzzzzz

Website www.companyA.com

Year of Incorporation 19‐‐

Products and Services

Ticker Symbol ‐‐‐‐‐‐

Stock Exchange Exchange Name

Key People

Products and Services

Category Products/Services

Segment Product 1, product 2, product N D i ti

Head Office

3,………………….

Others Product 1, product 2, product 3………

Name Designation

Person 1 Designation



24

, p , pPerson 4 Designation

BEARINGS MARKET IN INDIA 2013.PPT

i i l S h K i


Financial Snapshot Key Ratios

Profit / Loss

Total Income

d

ProfitINR mn

Total IncomeINR mn

a y4y3

Particulars y‐o‐y change

(20‐‐‐‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐

Profitability RatiosOperating Margin ‐3.31 7.37% 10.69% 11.63% 14.80%

20‐‐

f

g

h

b x4

y3

20‐‐

x3

20‐‐c

y2

x2

20‐‐

y1

x1

Net Margin ‐6.73 4.02% 10.75% 12.08% 7.61%

Profit Before Tax Margin ‐5.22 6.52% 11.74% 15.66% 11.00%

Return on Equity ‐7.25 5.51% 12.76% 13.22% 9.02%

Return on Capital Employed ‐2.22 8.50% 10.73% 12.11% 16.70%

Return on Working Capital ‐7.92 20.82% 28.74% 28.25% 56.05%

Return on Assets ‐1.89 6.67% 8.56% 10.77% 14.08%

Financial Summary

• The company earned a net profit of INR x4 mn in FY 20‐‐, as compared to net profit of INR x3 mn in FY 20‐‐

• The company reported total Income of INR y4 mn in FY 20‐‐registering an increase of x% over FY 20

Return on Fixed Assets ‐4.90 26.02% 30.92% 33.44% 41.15%

Cost RatiosOperating costs (% of Sales) 3.47 92.50% 89.03% 87.70% 84.70%

Administration costs (% of Sales)

5.78 33.11% 27.33% 22.91% 25.64%

Interest costs (% of Sales) ‐0.24 0.82% 1.06% 1.21% 1.74%registering an increase of x% over FY 20‐‐

• The company earned an operating margin of p% in FY 20‐‐, a decrease of y percentage points over FY 20‐‐

• The company reported debt to equity ratio of q in FY 20‐‐, an increase of r% over FY 20‐‐

Interest costs (% of Sales) % % % %

Liquidity RatiosCurrent Ratio 0.43% 2.49 2.48 4.42 2.60

Cash Ratio ‐14.77% 0.53 0.63 1.76 1.09

Leverage RatiosDebt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02

b i l iFinancial Summary

Indicators Value Market Capitalization (INR) z1

Total Enterprise Value (INR) z2

Debt to Capital Ratio 5.46% 0.24 0.23 0.01 0.02

Interest Coverage Ratio ‐12.08% 9.10 10.35 10.14 8.78

Efficiency RatiosFixed Asset Turnover 23.09% 3.47 2.82 2.72 2.69

Asset Turnover 14.00% 0.89 0.78 0.88 0.92

Current Asset Turnover 6.29% 1.66 1.56 1.78 2.26

25

EPS (INR) z3PE Ratio (Absolute) z4

BEARINGS MARKET IN INDIA 2013.PPT

Working Capital Turnover 5.98% 2.78 2.62 2.30 3.66

Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13


Key Business Segments Key Geographic Segments

100% 11%11%

Segment 4

Segment 3

Segment 2

Segment 1

100%

Country 2Country 1

SAMPLE76% 88% 85% 65%

0%

20%

40%

60%

80%

100%

13%2%

19%

4% 1%

11%

0% 1%

11%

3%

21%

13%0%

20%

40%

60%

80%

100%

5%

95%

3%

97%

3%

97%87%

SAMPLE Business Highlights (1/2)

0%

20‐‐20‐‐20‐‐

0% 1%

20‐‐

0%

20‐‐20‐‐20‐‐20‐‐

Description News

Overview

• Company A is a multi‐divisional ISO xxxx:yyyy certified company with a market share of x kW in the metal melting industry globally Holds more than x% market share in induction melting equipments used by the engineering and automotive Overviewindustry in country 1

Has worldwide presence with specific focus on the country 1, country 2, country 3, country 4 and country 5 while catering to z1 countries around the world

Electric Vehicle • Company has developed and introduced electric bikes and scooters under the brand name brand


Division 1 with an annual installed capacity of c1 mn units


•Strength 1 •Weakness 1

S W

Strength 1• Strength 2• Strength 3

•Weakness 1•Weakness 2•Weakness 3

S W

TO TO•Opportunity 1•Opportunity 2•Opport nit 3

• Threat 1•Threat 2•Threat 3

SAMPLE•Opportunity 3 •Threat 3

27

SAMPLE BEARINGS MARKET IN INDIA 2013.PPT

Strategic Recommendations (1/2)

Manufacturers

• Recommendation 1




Marketing



R d ti 7• Recommendation 7


Target ConsumersTarget Consumers




Recommendation 10

Thank you for the attentionElectric Vehicle Market – India 2013 report is a part of Netscribes’ Automotive and Transport Industry Series.For any queries or customized market research requirements, contact us at:Phone: +91 33 4027 6214/6215

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Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is


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market research report : electric vehicle market in india 2013

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