Thanks to the overwhelming response to our first report, we have had to quickly bring out an update. Have tried to incorporate all your suggestions and comments on the first report and it has allowed us to refresh some other data too.

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Insights on
Indian
Electric
Vehicles
Industry V2.0

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What’s new in this report
>> Further insights into costs of purchasing and owning an Electric Vehicle
>> Battery industry landscape
>> Update on EV industry scenario in India
>> Recommendations for the Indian EV industry

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>> Electric Vehicles global scenario
>> Electric Vehicles in India
>> Challenges in India
>> Recommendations for the EV industry
Contents

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The world oil reserves as of 2016 would be able to support earth’s
requirements only for the next 42 years
Source: Rystad Energy 2016, Upohan Analysis

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Countries all over the World are heralding a shift towards Electric
Vehicles and India is following suit albeit at a slow pace
Norway to phase out fossil-
fuel powered cars by 2025
France, Italy, UK & Sweden
plan to stop sales of fossil fuel
cars by 2040
China has also given an
indication that it will ban sales
of ICE vehicles
Indian government in
planning to shift to electric
vehicles by 2030
Indian Government to lead the
change by inducting 10K EVs to
be used by different departments
Government will provide
higher subsidies to EV
manufacturers to boost
the EV sales
Majority of the
States in USA have
policies which are
favourable to
Electric Vehicles
90% of the vehicles
sold in USA would
be electric by as
early as 2040

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1888
1900
1935
2006-
10
2016
German engineer Andreas Flocken
builds the first four wheeled electric
car
Electricity-powered cars become the
top selling road vehicle in the US
By 1935, EVs become all-but-
extinct due to the predominance of
internal combustion engine
In Japan, Toyota begins sales of the
Prius, the world’s first commercial
hybrid car. 18,000 cars were sold in the
first production year
Tesla launched Roadster, its first
Battery Electric Vehicle sports car.
Battery Electric Vehicle Nissan
Leaf is launched in 2010
Global Electric Vehicle stock reaches a
high of 2 Million
1997
Surprising as it may sound, EVs have been around for over a 100 years

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Electric cars will outsell fossil-fuel powered vehicles within two decades
as EVs become more affordable
Global EV sales figures have been growing rapidly: from 36,000 units sold in 2011 to more
than 270,000 four years later. However, the market share of EVs as a percentage of the
global automotive market in 2015 was only 0.3 percent. An increase to just 3 percent
would equate to 2.3 million EVs
Source: Bloomberg EV Outlook Report 2017, Upohan Analysis

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2017 to 2040 Estimated Figures
Source: Bloomberg EV Outlook Report 2017, Upohan Analysis
By 2040, 54% of new car sales and 33% of the global car fleet will be
electric
China and USA, the current
market leaders would be
leading the EV sales as well
Annual global light duty vehicle sales
Annual global EV sales by market
Falling battery prices will bring price-
competitive electric vehicles to all major
vehicle segments before 2030, ushering in a
period of strong growth for electric
powertrain vehicles

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Automotive majors have started investing heavily on development of
EVs but they are still far away from advancements made by Tesla
600%
41%
60%
51%
Tesla’s meteoric rise from a start-up to an established automotive company has compelled all the
automotive majors to focus on development of electric vehicles
World leader in EV sales is going to
add 3 more vehicles in next 2 years
VW has plans to introduce 4 EVs
across different segments
All new cars launched by Volvo from
2019 onwards will be partially or
completely battery-powered
Having launched i3, BMW is planning
to launch its first electric SUV by 2020
Toyota has launched iQ EV and also
has PHEV and FCV cars in its portfolio

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The costs of purchasing and owning an EV would come down sooner
than we think
$inThousands
As per UBS Bank estimates, GM at present is making
a loss of $ 6,000 and would start making a profit of
$ 7,000 from 2025 onwards on per unit of Bolt
Cost Breakdown ($ per car)
Driving cost per 100 Miles
$ 13.5 $ 3.5
USA
China
Europe
2025
2023
2018
Europe is estimated to lead
the shift towards EVs price
parity with ICE cars
Petrol Electricity

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Fuel for Electric Vehicles, Batteries are estimated to become a
$240 billion industry by 2035
Tesla and Panasonic are the world’s leading
manufacturer of EV Batteries and have the
largest EV battery manufacturing capacity
BYD is a Chinese Automotive Manufacturer.
Based on its current capacity it is the 2nd
largest EV battery manufacturer in the world
LG is the third largest battery manufacturer at
present and supplies close to 57% of
components for Chevrolet Bolt EV
Automotive Energy Supply Corporation was
established in 2007 as a joint venture
between Nissan, NEC and currently supplies
batteries for Nissan and Renault Alliance
Samsung SDI, supplies battery cells to Audi and
BMW. It is planning for significant investments
for capacity expansion

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>> Electric Vehicles global scenario
>> Electric Vehicles in India
>> Challenges in India
>> Recommendations for the EV industry
Contents

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In India, electric vehicles have been available in the market for the last
16 years, but have witnessed very little success

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2004-
06
Few companies
entered the
market but
followed the Sell
and Forget
business model
hence didn’t
survive for long
After witnessing a sharp sales drop of 65% in 2013-14, the sales in
2015-16 increased by 40%
2006-
08
Established
players like BSA,
and Hero Electric
entered the
market with
reliable products
and maintenance
schemes
2008-
12
Government
offered subsidy
to buyers of
eBikes which
resulted in
boosting the
sales
2012-
14
Government
withdrew the
subsidy and the
decline in petrol
prices forced the
consumers to shift
their focus to
traditional 2
wheelers
2014-
17
Government
offered subsidy to
buyers and
manufacturers of
eBikes under
FAME policy.
Several new
models introduced

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More than 4 Lakh e-rickshaws were sold in India in FY 16 against the
5.7 Lakh internal combustion engine 3 wheelers sold
Mahindra launched Bijlee in 1999, India’s first electric three wheeler
passenger vehicle. Launched at a time when the market awareness
was very low resulting in very poor sales numbers
2000 - 05
Several Chinese and Japanese companies entered the
Electric three wheeler market and the customers had lots
of options to select from. The sales declined considerably
after a brief ban on some electric three wheelers due
safety concerns
2005 - 10
Companies like Terra Mototrs, Adapt Motors establish themselves in
the Indian market. Bajaj Motors also starts working on eRickshaw
based on their current auto-rickshaw platform
2010 - 17

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with
Electric cars have not seen much success with the sales volume of 2,000
in 2016 which was a growth of 37% compared to 2015
Maini Motors launched Reva in 2001 and saw little success in the
Indian market. REVA was an acronym for "Revolutionary Electric
Vehicle Alternative“. It was also launched in some European countries
including the UK
2000 - 07
Prius launched in India in 2007. Honda introduces
Civic Hybrid in 2008. Mahindra acquires Maini
Motors and introduces E2O with significantly
improved driving range
2007 - 12
2012 - 17
Maruti Suzuki introduced Hybrid technology in Ciaz
and Ertiga and is working on Electric Swift. Mahindra
launched eVerito and Tata Motors & Ashok Leyland
are jointly working on developing an Electric Bus

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Automotive manufacturers are gearing up for the change and are now
readying their Electric Vehicle offerings for the Indian market
Maruti only has Mild Hybrid technology in their vehicles at the moment. It
doesn’t have a credible offering in Electric Vehicles segment and is now readying
Electric Swift for the Indian Market
Mahindra is the current leader in EV segment in India and have the technology and
capability to manufacture EVs. Mahindra is promoting E2O as a family car and have
introduced Extended Range E2O with four doors
Tata is developing Electric Engine for Tiago and is expected to launch it in a couple
of years. The recently launched Mini SUV, Tata Nexon might also get an Electric
Engine variant in near future
Tork Motorcycles is a new entrant in the two wheelers industry and is going to
launch its Electric bike in the market. Tork is going to have a first movers
advantage with their sports bike
Companies are lining up to get a slice of Indian EV Market

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>> Electric Vehicles global scenario
>> Electric Vehicles in India
>> Challenges in India
>> Recommendations for the EV industry
Contents

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Market Technical Policy Infrastructure
Challenges faced by EV industry in India can be broadly classified in
four areas
From India’s perspective; Market, Policy and Infrastructure are the
most critical areas where all the stakeholders of EV Industry will
have to focus

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Market
Manufacturers will have to address the needs of a growing market and
develop reliable products
• Testing and certification
• Vehicle servicing
• High capital cost and financing
• Market for electricity storage
• Consumer perception
• Raw material for batteries
• Quality of electricity
Technical
• Efficiencies of batteries
• Driving range of EVs
• Charging time
• Safety
• Environmental impact
• Research & Development

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Policy Infrastructure
• Charging infrastructure
• Smart grids
• Battery recycling
• Dedicated lanes for EVs
• Taxation of vehicles and components
• Subsidies on fossil fuels
• Electricity tariff policies
Drafting of favorable Policies and upgrading the infrastructure will play a
critical role in success of EVs

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>> Electric Vehicles global scenario
>> Electric Vehicles in India
>> Challenges in India
>> Recommendations for the EV industry
Contents

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The Government and EV Manufacturers will have to work on following
factors to ensure that EVs find their place in the market
Financial FactorsPolicy Factors Technological Factors

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The Government and EV Manufacturers will have to work on following
factors to ensure that EVs find their place in the market
Policy Factors
One-time government monetary subsidies at purchase. Under FAME scheme government
has offered to give subsidy of Rs. 11,000 to Rs. 1.38 Lakhs on purchase of Electric Vehicle
Post-purchase monetary government subsidies. Government has drafted National Electric
Mobility Mission Plan (NEMMP) 2020 and the policy will be laid down in December 2017
Induction of EVs. Central Government has issued a notification of inducting 10,000 Electric
Vehicles in its fleet. State Governments can also start inducting EVs in their fleet
Charging infrastructure. Charging stations can be established In a Public Private partnership
between the government and EV manufacturers
OEM Suppliers. Develop India as a base for Electric Vehicles OEM suppliers by offering tax
holidays and providing necessary infrastructure

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The Government and EV Manufacturers will have to work on following
factors to ensure that EVs find their place in the market
Financial Factors
Purchasing price. Subsidy to Automotive Manufacturers and Parts manufacturers will bring
the price down and significantly improve the affordability of EVs
Fuel price. Increasing fuel prices will prompt customers towards EVs
Financial incentives. Customers need to be made aware of the subsidies provided by the
government in purchase of EVs and the benefits of owning Electric Vehicles
Low interest loans. Banks can offer lower interest loans in order to provide impetus to
Electric Vehicle Sales

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The Government and EV Manufacturers will have to work on following
factors to ensure that EVs find their place in the market
Technological Factors
Driving range. The electric vehicles on sale in India at present have a range of 140 Kms on a
full charge. The range needs to improve significantly for the customers to except it
Charging time. The time taken for a full charge is in the range of 8 to 10 hours. Customers at
present are used to filling up the tank of the cars in a matter of few minutes
Vehicle options. At present very few options are available in Electric Vehicles. Manufacturers
need to bring in the models which are available in international market for Indian customers
Safety and Security. Cutting edge safety and security features should be provided which are
similar to the what is being provided in the Western world markets

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We would love to
hear from you

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Thank You