Feasibility analysis of Electric Vehicles in India

1. Feasibility Analysis of Electric Vehicles in India
Presented by
SUSHOVAN BEJ

2. The Electric Vehicle market is expected to witness phenomenal
growth in the coming years. Increasing fuel costs, rise in pollution
level and increasing government support will boost the adoption
of electric vehicles in India.
Source : Mahindra e2O

3. Meghraj Group

4. History of Electric Vehicles (EVs)
1801-1850
• The earliest EVs are invented in Scotland and the United States.
1851-1900
• EVs enter the marketplace and find a broad appeal.
1901-1950
• EVs reach historical production peaks only to be displaced by petrol
power Internal Combustion Engine cars.
• Global EV stock reaches peak of 30000 by 1912.
1951-2000
• High oil prices and pollution cause renewed interest in EVs.
2001 onwards
• Public and private sectors recommit to vehicle electrification.
• Global EV stock reaches peak of 50000 in 2011 and exceeds 180000 by
2012.
Source : Global EV outlook 2013

5. WHAT IS AN ELECTRIC VEHICLE ?
An electric vehicle (EV), also referred to as an electric drive vehicle, uses
one or more electric motors or traction motors for propulsion.
The electricity used to run the motor could come through either
transmission wires, as is the case with electric locomotives, metro trains,
and trams or through a single or a series of connected batteries, as is the
case in electric bikes and electric cars or it could be generated on board
using a fuel cell.
EVs are mainly categorized as:
• Electric two-wheelers (E2Ws) is used for both electric bicycles and
electric scooters
• Electric four-wheelers (E4Ws) is used for electric cars
• E3W is used to refer to electric 3-wheelers (including E-rickshaws)
• E bus to refer to electric buses.

6. Electric vehicles can be classified into two types:
• Battery electric vehicles (BEVs) which have an electric motor in place of
combustion engine and use electricity from the grid stored in batteries.
• Plug-in hybrid electric vehicles (PHEVs) which use batteries to power
an electric motor and liquid fuel such as gasoline or diesel to power an
internal combustion engine or other propulsion source.
Inside Electric Vehicles (EV)
• An electric motor
• Motor controllers
• Batteries
Source : IEA, electric vehicles
Source : SCA, Difference between BEV and PHEV

7. Charging Infrastructure
Public charging infrastructure is a critical component in accelerating the
adoption of EVs.
The rate at which charging adds range to a vehicle depends on the vehicle,
battery type, and type of EVSE.
The following are typical rates for a light-duty vehicle.
• Level 1: low power chargers up to 1.5kW (in Delhi, service voltage is 230V, so
any charger on a circuit with a capacity up to 6.5 amps is considered Level 1)
• Level 2: medium power chargers up to 20kW
• DC Fast: direct current fast chargers ranging from 30-100kW
• Battery Swapping Stations: stations where vehicle batteries can be replaced
with pre-charged batteries.
• Solar charging
Source : Nissan leaf
Source : Mahindra E2O solar charging illustration

8. Scope of EVs in India
India is currently the third largest emitter of CO2 in the world. The transport
sector accounts for 13% of India’s energy related CO2 emissions (INCCA, 2010).
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Carbonemissions(MtCO2)
Carbon emissions (MtCO2)
93% of all the fuel used in transport sector was oil based. The sector is also a
major source of GHG emissions and accounts for 22 % of total global energy
related CO2 emissions as per IEA, 2011.
Source : Global emissions reports, 2015

9. Advantages :
• High Fuel Economy, Low Operating
Cost
• Flexible Fuelling
• High Performance
• Low Emissions
• Energy Security
• Clear benefit of savings in yearly
running costs Example: Mahindra
e2O cost comparison with the
conventional cars.
• Lifestyle convenience of charging
your car at home overnight.
• Cheaper to Operate
• Low Maintenance
Challenges :
• Driving range
• Recharge time
• Battery cost
• Bulk & weight
Advantage and challenges of EVs over conventional vehicles with internal
combustion engines (ICEs)

10. - Increasing crude oil
prices
- Low maintenance cost of
EVs
- Increasing demand for
EVs in world market
- Manufacturers as well as
government providing
incentives to attract
buyers
- Better technology to
support the EV
infrastructure
- High prices compared to
conventional cars
- Lack of spares market
- Charging infrastructure
- Resale value
- Lack of optimum
business model
DRIVERS
CHALLENGES
Drivers and Challenges to the growth of EVs

11. Automotive Mission Plan (2006-2016)
Its aim is to emerge as the destination of choice in the world for design and
manufacture of automobiles and auto components with output reaching a level
of US$ 145 billion accounting for more than 10% of the GDP and providing
additional employment to 25 million people by 2016.
National Electric Mobility Mission Plan (NEMMP) (2020)
Its aim is to achieve national fuel security by promoting hybrid and electric
vehicles in the country. There is an ambitious target to achieve 6-7 million sales
of hybrid and electric vehicles year on year from 2020 onwards. With the
support from the GoI, the cumulative sale is expected to reach 15-16 Million by
2020. It is expected to save 9500 Million Litres of crude oil equivalent to Rs.
62000 Cr. savings.
Smart City Initiative
The policies and regulations pertaining to improve the acceptability of the
electric vehicles have always been present but the smart city initiative
undertaken by the MoUD has given a greater boost to improve the electric
vehicles segment in India.
Policies for EVs in India

12. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME)
Based on NEMMP 2020, the GoI approved the FAME India initiative
undertaken by DHI so as to formulate the road map for a new paradigm in
road transportation focussing around hybrid and electric vehicles. Based on
the Ministry of Finance’s approval, FAME India scheme with an outlay of Rs.
795 crore has been launched for the initial two years – Phase I (2015-17).
Component of the
Scheme
2015-16 (in Rs.
Crore)
2016-17 (in Rs.
Crore)
Technology Platform (incl.
testing)
70 120
Demand Incentives 155 340
Charging Infrastructure 10 20
Pilot Projects 20 50
IEC/Operations 5 5
Total 260 535
Grand Total 795
Source : DHI, India

13. Vehicle Segment
Minimun Incentive
(INR)
Maximum
Incentive (INR)
Scooter 1800 22,000
Motor Cycle 3500 29,000
3-wheeler (CNG/Diesel) 3300 54,000
3-wheeler (Petrol) 3300 61,000
4-wheeler (length not
more than 4 meters)
13,000 124000
4-wheeler (length more
than 4 meters)
11,000 1,38,000
LCV (CNG/Diesel) 17,000 1,87,000
Bus (CNG) 34,00,000 66,00,000
Bus (Diesel) 30,00,000 61,00,000
Retrofit Category
15% or 30,000 if
reduction in fuel
consumption is 10-
30%
30% or 90,000 if
reduction in fuel
consumption more
than 30%
• Running pure electric vehicles (7 seater) in the last 2 Kms at Taj Mahal (Agra)
• Pure Electric 2 wheeler vehicles for home delivery (Dominos, KFCs etc)
• Pure electric 3 wheelers/small 4 wheelers for fruit and vegetable distribution
and garbage disposal etc.
• Electric cars for taxi fleets, corporate hire and rental scheme use etc.
• Last mile connectivity from metro stations
• Hybrid and electric buses for public transport
Pilot projects under FAME
Source : Incentives by Vehicle Segmentation, DHI

14. PROCESS FOR INCENTIVE DELIVERY IN INDIA
OEM Registration
• OEM to provide necessary documents for registration
• NAB to register the OEM.
OEM's EV
homologation and
eligibility
• OEM to submit necessary documents required for homologation of a model
• Test agency to certify specific model qualifying eligibility requirements
OEM's EV
production and
dispatch
• OEM to submit production date and details of models and vehicles being
dispatched (Chassis no.,E/G no. factory cost etc.)
Dealer's EV sales
process
• Details of individual vehicles as above and Dealer's name, address etc.
Dealers's EV
Registration
• Registration of vehicle by dealer with registration authority (mapping vehicle
details to customers)
NAB's Incentive
Clearance
• After registration of vehicle, Clearance for transfer of Incentives amount to
OEM
Source : Process of incentive delivery under FAME, DHI

15. INTERNATIONAL ELECTRIC VEHICLES SCENARIO
Internationally, battery costs have come down, energy density has climbed,
vehicle electrification has gone multi-modal with 46,000 electric buses and 235
million electric two-wheelers deployed, and total EV spending by nation
governments equalled 16 billion USD between 2008-2014.
• The Global EV stock stands at more than 665,000 through the end of 2014,
which account to 0.08% of the total passenger cars sold.
• The Global EV supply equipments (EVSE) stands more than 15000 for fast
charging points and 94000 for slow charging points.
• The EVSE stock more than doubled for slow charging points between the end
of 2012 and 2014, and increased eightfold for fast charging points.
Example: China accounts for 230 million e-
bikes, 83000 e-cars and around 36500 e-buses.
Year BEV(in%) PHEV(in%)
2011 81 19
2012 49 51
2013 54 46
2014 57 43
Source : Global EV report, IEA

16. Country Market Share 2013(in %) Market Share 2014(in %)
Canada 0.1 0.3
United States 1.3 1.5
Netherlands 5.3 3.9
United Kingdom 0.2 0.6
Spain 0.1 0.2
Portugal 0.2 0.2
France 0.5 0.7
Norway 7.3 12.5
Sweden 0.6 1.4
Denmark 0.3 0.9
Italy 0.2 0.1
Germany 0.2 0.4
Japan 0.7 0.7
China 0.1 0.3
0
2
4
6
8
10
12
14
Market Share
2013 (in %)
Market Share
2014 (in %)
Country EV stock EVSE stock
Canada 10778 3117
United States 275104 21814
Netherlands 43762 12114
United Kingdom 21425 2866
Spain 3536 775
Portugal 743 1330
France 30912 8600
South Africa 48 0
Norway 40887 6208
Sweden 6990 3100
Denmark 2799 1721
Italy 7584 2520
Germany 24419 2821
India 2689 328
Japan 108248 11511
China 89198 30000
• Norway is the country with the
highest market penetration per
capita in the world, with four plug-
in electric vehicles per 1000
inhabitants in 2013.
• In March 2014, Norway became the
first country where over 1 in every
100 passenger cars on the roads is a
plug-in electric.
• Norway also has the world's largest
plug-in electric segment market
share of total new car sales.
Source : Global EV Outlook

17. COMPARING INCENTIVES FOR ELECTRIC VEHICLES IN INTERNATIONAL
MARKETS
There are numerous policy incentives intended to increase sales of EVs. For the
following international comparison, we focus only on a few of these:
• Direct subsidies (defined here as a one-time bonus upon purchase of an EV)
• Fiscal incentives (defined here as a reduced purchase and/or annual tax for
EVs)
• Fuel cost savings (incentive due to electricity prices being lower than fuel
prices as a result of lower taxation and/or lower energy costs, as well as
higher efficiency of EVs)

18. DIRECT SUBSIDIES
NORWAY
The Norwegian subsidy policy is an integrated
part of the so-called Climate Agreement
(‘Klimaforliket’).
The policy is set by the Norwegian Ministry of
Finance and the Norwegian Ministry of
Transportation. At present, it includes the
following points:
• EVs are exempt from VAT and other taxes on car purchases and sales.
• Parking in public parking spaces is free.
• EVs can use most toll roads and several ferry connections free of charge.
• EVs are allowed to use bus and collective traffic lanes.
• The company car tax is 50 per cent lower on EVs, and the annual motor
vehicle tax/road tax is also lower.
• Battery charging is free at a rapidly growing number of publicly funded
charging stations
Norway

19. FRANCE
French Bonus/Malus vehicle taxation system,
vehicles emitting less than 20 g/km of CO2
receive a one-time bonus of 7,000 EUR (the
amount of the incentive cannot exceed 30% of
the vehicle purchase price including value-
added tax, or VAT, and battery cost). For
vehicles between 21 and 50 g/km, the bonus is
5,000 EUR.
SWEDEN
Since 2012, cars with a CO2
emission of 50 g/km and less
receive a onetime “super
green car premium” of 40,000
SEK (about 4,500 EUR). The
program ran through 2014 and
will be paid to a maximum of
5,000 cars.
France
Sweden

20. Renewable Transport Fuel Obligations (RTFO) order so that it’s fully
compliant with European legislation.
In 2011 the government provided £10 million of targeted funding to improve
air quality in London, including a programme to retrofit buses with
technology to reduce pollution. Since August 2013 a further £7.5 million has
been awarded under the new Clean Bus Technology Fund.
Grants are available for cars and vans as follows:
• 35% off the cost of a car, up to a maximum of £5,000
• 20% off the cost of a van, up to a maximum of £8,000
UNITED KINGDOM
United Kingdom

21. • A federal subsidy program for EVs (i.e 1
million EV goal by 2015 out of which
280,000 achieved by end of 2014) allows for
a one-time bonus, depending on the
battery capacity of the vehicle, of up to a
maximum of 7,500 USD in form of tax
credit.
• In California, there is another subsidy
program at the state level, granting BEV
purchasers another 2,500 USD (about 1,800
EUR) and PHEV 1,500 USD (about 1,100
EUR) in the form of a one-time bonus
payment.
Since 2010, a national program provides a one-
time bonus for EVs and fuel cell vehicles.
The bonus is between 35,000 and 60,000 RMB
(about 4,200–7,200 EUR) for BEVs, depending
on the battery range of the vehicle, and 35,000
RMB (about 4,200 EUR) for PHEVs with battery
range no less than 50 km.
CALIFORNIA (USA)
California
CHINA

22. FISCAL INCENTIVES
Fiscal incentives for EVs are another important element of encouraging the
purchase of these vehicles. There are four main categories of tax break :
VAT
Countries have either low VAT than their comparable gasoline cars or no VAT.
Norway is the only market examined here which excludes BEVs from VAT.
ONE TIME PURCHASE/ REGISTRATION TAX
In Denmark, registration tax is calculated based on vehicle price, safety
equipment on board, and fuel consumption. BEVs are exempt from
registration tax.
In Norway, registration tax is based on vehicle weight, engine power, and CO2
emission. BEVs are exempt from registration tax.
Example : For the Volvo V60, a registration tax of about 37,000 EUR applies to
the PHEV version, compared with about 35,000 EUR for the regular diesel
version.

23. ANNUAL CIRCULATION TAX
Some markets charge an annual vehicle ownership tax.
In Germany, BEVs and PHEVs are exempt from circulation tax for a period of 10
years from the date of their first registration.
COMPANY CAR TAX
The basic idea behind the company car system is as follows: Instead of paying a
higher salary to its employee, the company offers to provide him/her a car and to
pay all related charges, usually including fuel costs.
The company can claim the costs for the vehicle and associated charges as
business expenditures and is subject to a lower profit tax.
The employee, on the other hand, has access to a vehicle that he/she can also use
for private trips.
In return, the employee has to pay a special company car tax to account for the
monetary benefit of having free access to a vehicle.

24. FUEL COST SAVINGS
EVs are more energy efficient than comparable combustion engines.
Fuel/electricity consumption of a vehicle needs to be multiplied by the price for
fuel/ electricity to obtain an estimate for annual spending on fuel/electricity.
This is also reflected in the estimated fuel cost savings.
Country
Gasoline Price
(EUR/l)
ElectricityPrice
(EUR/kWh)
Renault
Zoe(BEV)
Renault
Clio(Gasoline)
Fuel cost
Savings (EUR/4
years)
Norway 1.8 0.18 10512 30960 20448
Netherlands 1.76 0.19 11096 30272 19176
France 1.57 0.15 8760 27004 18244
UK 1.68 0.18 10512 28896 18384
Sweden 1.71 0.21 12264 29412 17148
Austria 1.45 0.2 11680 24940 13260
Germany 1.49 0.27 15768 25628 9860
China 0.94 0.06 3504 16168 12664
Denmark 1.7 0.3 17520 29240 11720
Japan 1.12 0.19 11096 19264 8168
California 0.69 0.11 6424 11868 5444
Source : Global EV Summit
Here fuel cost saving for each nation is calculated as :
Fuel Cost saving (EUR/4 years) = [Electricity Price (EUR/kWh)-Gasoline Price(EUR/l)]
x 100000 (distance covered) x 4 (number of years)

25. Vehicle Terms
Zoe (BEV) Clio (Gasoline) Diesel-PHEV Diesel
Engine Power(kW) 65 66 206 158
Engine Displacement (cm3) na 898 2400 2400
Acceleration Time 0-100km/h 13.5 13 6.1 7.7
Empty Weight Vehicle (kg) 1428 1009 1995 1821
Transmission type Auto Auto Auto Auto
Co2emission (g/km) 0 99 48 169
Fuel Consumption (l/100km) 0 4.3 1.8 6.4
Electricity Consumption (kWh/100km) 14.6 na 21.7 na
Battery Range (km) 210 na 50 na
Vehicle Base Price (Germany) excl. VAT
(EUR)
21442 13277 51571 43412
Renault Volvo
Source : Global EV Summit
Savings in Vehicle terms
Assuming:
Annual Distance Covered (in kms.) – 100000
Time Period (yrs.) – 4

26. INDIAN SCENARIO FOR ELECTRIC VEHICLES
As per the data available, around 42000 electric vehicles were sold in 2012-
13 and nearly 20000 hybrid and electric vehicles were sold in 2013-14.
In the year 2012-13, most of the electric vehicles sold were electric low
speed scooters.
The WAVE
A road-trip of electric vehicles, covering over 2500 Kilometres of southern
India. It begins at Mumbai and stop at schools, colleges, malls, and other
places of importance in major Indian cities such as Pune, Hyderabad,
Bangalore, and Goa.
Mumbai Metropolitan Regional Authority (MMRDA)
In April 2015 – Floated RFP for 25 AC electric / hybrid buses from Bandra
Kurla Complex to 3 railway stations.
New Delhi Municipal Corporation
• Proposes to operate three wheeler electric vehicles from Metro
stations.
• Delhi has established charging ports in 50 of its sub-stations in the city.

27. Athena Energy (2016)
• IIT Madras based startup aiming to launch redefined electric scooter in
2016
• Lithium-ion battery with digital battery management targeting 8 times
faster charging, 10 times longer battery, 75 percent lighter battery.
Bangalore Municipal Corporation
• First trial of electric bus in India in Mar 2014
• Bangalore has equipped parking spaces in malls and offices with charging
points for electric cars.
• Bangalore Municipal Transport Corporation proposed exemption of road
tax and VAT for electric vehicle.
• Project shelved as corporation is cash strapped and cannot afford a 3 crore
INR bus.
Source : BMC electric bus,
The Hindu

28. ELECTRIC VEHICLES MANUFACTURERS IN INDIA
Mahindra REVA
Mahindra Reva Electric Vehicles Private
Limited, formerly known as the Reva
Electric Car Company, is an Indian
company based in Bangalore, involved in
designing and manufacturing of compact
electric vehicles.
AJANTA OREVA
"Ajanta Manufacturing Ltd. (OREVA Group)" is
the name of the corporate presence behind
the leading "OREVA" brand of the country. It is
India's leading manufacturer of Compact
Fluorescent Lamps (CFL) and other Lighting
Products, Vitrified Tiles, Ajanta Digital Clock
and Battery Operated bikes (E-bikes)
Source : Mahindra Reva
Source : Ajanta oreva e-scoots

29. HERO ELECTRIC
Hero Eco is a multi-company, multi-product and a multi-location enterprise with
interests in Electric Vehicles, Exports, Bicycle, Healthcare and Real Estate with
Corporate Office based at New Delhi, India.
Source : Product profile, Hero electric

30. TATA MOTORS
Tata Motors Limited (formerly TELCO, short for Tata Engineering and
Locomotive Company) is an Indian multinational automotive manufacturing
company headquartered in Mumbai, Maharashtra, India and a subsidiary of
the Tata Group. Its products include passenger cars, trucks, vans, coaches,
buses, construction equipment and military vehicles. It is the world's 17th-
largest motor vehicle manufacturing company, fourth-largest truck
manufacturer, and second-largest bus manufacturer by volume.
Tata Megapixel offers a range of up to 900 km
(with a single tank of fuel), path-breaking
CO2 emissions of just 22 g/km and fuel
economy of 100 km/litre under a combined
driving mode
Source : Tata Megapixel
Source : Tata electric Bus

31. TAX STRUCTURE FOR EVs IN INDIA
CONVENTIONAL VEHICLES
Custom Duties
Foreign vehicles imported into India are subject to customs duties. A buyer pays
about 102 percent duty on a new vehicle or 160 percent on a used vehicle.
These rates include:
• Basic customs duty (35 percent)
• Special excise duty (24 percent)
• Additional duty (16 percent)
• Surcharge on customs duty (10 percent)
• Special additional duty of customs (4 percent)
• Motor vehicle cess (0.125 percent)
Excise Duties
The excise duty on the cars depends on the length of the vehicle and the engine
size.
• Less than 4 meters – 8 percent
• More than 4 meters
 Less than 1200cc (petrol) and 1500cc (diesel) – 20 percent
 More than 1500cc (petrol and diesel) – 24 percent

32. Custom Duty on Import
The normal import duty is not
applicable on the followings :
• Batteries
• Chargers
• Motors
• Controllers & Convertors
ELECTRIC VEHICLES
The advantages of using an EV
Excise Duty
Basic Excise Duty is charged at 6%
on Assessable Value + 2% E cess +
1% HE cess.
Automobile Cess
0.125% of Automobile Cess
State VAT Entry Tax Road Tax
Delhi 12.50% 0.00% 4.00%
Chandigarh 12.50% 0.00% 6.00%
Punjab 14.30% 0.00% 6.00%
Rajasthan 0% 0.00% 0.00%
Uttarakhand 0% 0.00% 0.00%
Uttar Pradesh 14.50% 0.00% 0.00%
Bihar 13.50% 0.00% 6.00%
Jharkhand 5.00% 0.00% 3.00%
Odhisa 14.00% 2.00% 5.00%
West Bengal 5.00% 1.00% 9.00%
Gujarat 5.00% 0.00% Rs. 1,150
Maharashtra 5.00% 3.50% 2.50%
Goa 12.50% 0.00% Rs. 1,150
Madhya Pradesh 5.00% 1.00% 7.00%
Chattisgarh 0% 1.00% 4.00%
Puducherry 8.00% 0.00% 0.00%
Tamil Nadu 5.00% 0.00% 8.00%
Kerela 5.00% 0.00% 6.00%
Karnataka 5.00% 0.00% 4.50%
Andhra Pradesh 5.00% 0.00% 5.00%
Vat Structure on EVs
Source : Electric vehicles association of India

33. SWOT ANALYSIS OF THE EV INDUSTRY IN INDIA
• Greater opportunities for research and
development.
• Create more job opportunities.
• Availability of skilful labour at cheaper
prices.
• Develop more fuel efficiency of BEVs and
improve range for the HEVs.
• Provide training to dealers and launch
more EVs in the market.
• Optimize production process to minimize
losses.
• Improve the governmental aim schemes
for EVs and strengthen infrastructure.
• Provide smaller incentives for a longer
duration to improve acceptability.
• Lack of collaboration between EV
manufacturers eg, Different charging plugs and
systems used by different manufacturers.
• Lack of charging infrastructure.
• Lack of manufacturing facilities hence most
EVs being imported which adds to the cost.
• Lack of competition for the segment hence
lack of choices.
• Decreasing gasoline prices which compete to
the EVs’ sales.
• Improvements in public transportation.
•High initial price (around 30% more than
equivalent conventional cars).
•Limited range
• Range of conventional cars approx.
900kms on one full tank.
• Range of most modern electric cars
around 150kms.
• Recharging time - significantly greater
amount of time to recharge an EV than to
refill a conventional car
• Shortage of spare parts as compared to
conventional cars’ parts.
• Low sales lead to low revenue and profits.
• Limited car designs.
• Low running cost for maintenance and recharge
Environmental friendliness
• Most energy efficient
• No emission of nitrogen or carcinogenic
substances
• Very low CO2 output
• Smooth driving experience with best in class
technologies are found in EVs.
• Low variable Can reduce dependence on foreign
oil imports.
• Can decrease utility prices - Electric vehicles
typically charge at night, when electricity is
cheapest to generate.
• Government rebates More research and
development can be done.
• Manufacturing facilities of conventional cars can
be used.
• Can facilitate to earn stronger revenues and
profits.
STRENGTH WEAKNESS
OPPORTUNITIESTHREATS

34. POLITICAL
• Government continuously slashing tax
rates.
• Government has launched schemes like
automotive mission plan, FAME, NEMMP.
• Automatic approval for FDI in automobile
sector.
• Government aims to achieve carbon
reduction as every other nation.
ECONOMICAL
• Stable economic policies.
• Easy availability of finance.
• Proximity to major export markets.
• Most automobile companies are present
in India with their offerings in every
segment (luxury, medium and small
segment).
• Economic incentives by local and state
government should be easily available.
• Low duties and taxes.
• The buying capacities of the individuals
are increasing.
• Acceptability for new technologies is
increasing at a good rate.
SOCIAL
• Lucrative market in rural India.
• Rapid urbanization and income level.
• Skilled labour costs among the lowest in
world.
• Buying EV can be depicted as a status
symbol or a symbol for care for Mother
Nature.
• Many social initiatives are being taken up
to improve the living standards
PESTEL ANALYSIS OF THE EV INDUSTRY IN INDIA
TECHNOLOGICAL
• Lakhs of Engineers pass out every
year which can add to the strength for
the segment
• Credible local suppliers of high
quality components.
• India emerging as a hub for auto
manufacturing and research.
• Availability of skilful labour.
• Modern population is technically
sound and the acceptability to newer
products in increasing.
ENVIRONMENTAL
• Indian automotive regulations are
closely aligned to world standards on
emission and safety.
• EVs help to reduce carbon emissions
into the environment.
• Government initiatives for attaining
sustainable development.
LEGAL
• Weighted tax deduction up to 150%
on in house R&D.
• Relatively high import duties.
• Car manufacturers are not legally
bound to provide basic safety
equipments like airbags, anti-lock
braking systems etc. as standard
which is present in other nations.

35. PORTERS’S Five Forces Analysis
Threat
of Entry
Buyer's
Power
Supplier's
Power
Substitutes
Competitive
Rivalry
THREAT OF ENTRY
• Dominance of East Asian
companies in EV sector
• Reduction in import duties
• Presence of skilful labour
BUYER POWER
• High – price
• Imports By Individuals
• Customer services and support
• Buyers always look for substitutes
• Second Hand Market
SUPPLIER POWER
• Rate of registration
• Create brand loyalty
• The wide networks of dealerships
available.
SUBSTITUTES
• Public transports
• Similarity of products
• Easier to use in day to day life of
conventional cars
COMPETITIVE RIVALRY
• Nature of the
• Price wars
• Ease of access to the buyers

36. MAHINDRA e2O – A CASE STUDY
Mahindra Reva Electric Vehicles, formerly known as the Reva Electric Car
Company (RECC), was founded in 1994 by Chetan Maini, as a joint venture
between the Maini Group of Bangalore and Amerigon Electric Vehicle
Technologies (AEVT Inc.) of the USA. The company's sole aim was to develop
and produce an affordable compact electric car.
The car has a lithium-ion battery pack that takes five hours for a full charge
and with a weight of 830 kg and delivers a range of 120 km and a top speed of
90 km/h. The e2o is one of the more advanced cars on Indian roads,
with smartphone-controlled features, GPS navigation system and a
dashboard-mounted touchscreen, keyless entry, start/stop button,
and regenerative braking.
Source : Mahindra Reva e2O

37. FINANCIAL COMPARISION BETWEEN MAHINDRA e2O AND CONVENTIONAL
CARS
ASSUMPTIONS
State – Delhi
Daily Travel – 50 kms.
Price of Gasoline (Petrol/Diesel) Car – Rs. 6,00,000
Assuming a buyer will opt for the ‘Goodbye Fuel Hello Electric/ e2o Care
Protection Plan (5 years and 50000 kms.)’ – Under this plan, Mahindra
provides with – Performance and assistance guarantee and inflation proof
cost. Mahindra Reva will provide you with a courtesy car if your car is off-road
beyond 24 hours on account of technical issues in the battery. 24x7 roadside
assistance will be provided.
With this program the battery ownership lies with Mahindra Reva. The
battery is leased to you for a nominal fee, starting at Rs. 2599/month and
they guarantee the battery's performance to at least 75% of its original
capacity for the period of the lease.
After completing 50,000 km within 5 years, pay R 2.50 per km for usage of
more than 800 kms.

38. Comparing Mahindra e2O (electric) versus Petrol car
PARAMETERS e2o (in Rs.) PETROL (in Rs.)
PRICE 592649 600000
EMI 10816 10950
Energy Cost 750 8125
e20 Care Protection Plan 4277 Nil
Maintenance Plan 255 675
Monthly Expenditure 16097 19750
Savings in 5 years (in Rs.) 219142 Nil
Yearly Savings (in Rs.) 43828 Nil
Comparing Mahindra e2O (electric) versus Diesel car
PARAMETERS e2o (in Rs.) DIESEL (in Rs.)
PRICE 592649 600000
EMI 10816 10950
Energy Cost 750 5500
e20 Care Protection Plan 4277 Nil
Maintenance Plan 255 900
Monthly Expenditure 16097 17350
Savings in 5 years (in Rs.) 75142 Nil
Yearly Savings (in Rs.) 15028 Nil
Source : Mahindra e2O savings/petrol
Source : Mahindra e2O savings/diesel

39. INFRASTRCUTURE REQUIREMENTS FOR MAHINDRA e2O
House supply
This takes 5-6 hours charging time for 100%
charging with 15A 220V plug point
Quick2Charge
It’s an innovative charging technology that can
fully charge the e2o in under 1 hour! The
Quick2Charge station is a DC fast charging unit
that comes with a commercial 3-phase AC
supply input of up to 12kW.
Solar Charging
The solar panels can be used to power your
home as well. Though it takes around 8 hours
to charge the car to full, but it is more
sustainable and greener way to charge the car.
Source : Mahindra e20 quick2charge, The Hindu
Source : Mahindra e20 solar charge, The Hindu

40. The Mahindra e2o is one of the more advanced cars on Indian roads,
with smartphone-controlled features and GPS navigation system which
helps the drivers to locate the nearby charging stations in case they run out
of juice midway their journey.
E2O Mobile App Service
Source : Mahindra e2O mobile app

41. RECOMMENDATIONS
The policies for electric vehicles have been present for a long time in India,
but certainly even after it bringing out savings to the wallet, there are
certainly some revisions that need to be done so as to make the EVs more
acceptable to the common masses.
Technology
• Reduction in battery cost along with performance enhancement.
• Better research and development facilities for efficient electric motors
that can also help to improve the range of the EVs.
• Better system to provide data on driving and charging requirements.
• Improvement in the charging infrastructure alongwith universal charging
systems, hence, better integration between the manufacturers is
required.
• India has a good solar potential, hence more research needs to be done
regarding charging using solar so as to make the charging of cars like e2O
more efficient, rather than a long 8 hours wait.

42. Policy
• Certify EVs for their efficiency like BEE rating of electric vehicles.
• Provide platforms for PPP model for the success of EVs.
• Ensure stricter fuel economy and emissions regulations.
• Enable local markets for EVSE.
• Promote research and development facilities for improving the
efficiency of EVs.
• Develop policies and incentivise EVs based cab infrastructure.
• Governmental incentives to encourage investment in electric vehicles
and infrastructure
• Laws regulating type and use of electric vehicles on state highways
• Transportation tax policies related to electric vehicles
• Specific lane access for electric vehicles
• Electric vehicle purchase orders and bulk pricing
Financial
• Encourage and provide seed funding for EVs and EVSEs in newer markets.
• Government should share the cost of market development for EVs
alongwith private investors.
• Battery leasing based models should be initiated.
• Develop a resale market as it impacts the consumer in a broader way.

43. Market
• Provide infrastructure for companies like Tesla Motors to enter the Indian
market.
• Create retail partnerships for wider coverage of the market.
• Improve customer services.
• Provide adequate market driven EVSEs.
• Promote workplace charging.
• Improve public education and awareness on EVs.
• Develop market penetration strategies for EVs for low end sector which
accounts for the largest number of consumers in India. Example, cars like
Tata Nano should be manufactured and promoted as EVs. This will improve
ridership and improve the market.
• There should be uniformity in the technology provided in terms of
consumer interface
The government and industry realize that both the battery technology and
charging infrastructure need to improve to meet the customers' expectations
of range, recharging and affordability, before they will switch over to EV.
Hence, charging infrastructure is the biggest hindrance / factor for the growth
of the EV market.

44. Possible sites for the charging stations can be :
• Petrol Pumps
• Charging stations near malls, big complexes
• Parking slots
• Solar based charging lots or stations
Currently three ways to charge an EV :
• Direct supply
• Quick charging technologies
• Using renewable sources like solar to enhance charging in a greener way.
One method is to integrate the solar panel on
the roof of the car (example, Fisker Karma cars)
which can help in constant charging of the
cars.
Second method, can be the use of PHEV in
which the gasoline engine is used to charge
the batteries of the car which are convenient
to use but in a way also add to the carbon
emissions
Source : Fisker Karma
IMPROVING THE PROBLEM OF CHARGING INFRASTRUCTURE

45. To make an EV truly green, the best method is to use the supply from
renewable sources like solar to charge the cars.
Batteries have the potential to compensate the power deficit the power
utilities are unable to provide, by potentially supplying all of a customer’s
energy needs.
In suburban and rural areas with houses powered by PV with battery storage,
the power requirements can easily be fulfilled with the battery .
The Powerwall is a rechargeable lithium-
ion battery product manufactured by
Tesla Motors for home use. It stores
electricity for domestic consumption,
load shifting, and backup power and
takes its source supply from either
renewable sources like solar or from
conventional supply from the grid.
Source : Tesla Powerwall
Tesla Powerwall
INTEGRATING GREENER WAYS TO CHARGING INFRASTRUCTURE

46. Renewable energy potential in India
Technology Potential (MW)
Wind 102800 (80m hub height)
Small Hydro (upto
25MW)
19700
Biomass including
bagasse
22500
Solar 50MWp/km2
There can be various business models developed for bringing such battery
storage infrastructures into the market along with renewable energy sources.
Private Ownership
Privately owned systems present
the greatest threat to utilities and
retailers, as customers with these
systems are theoretically able to
provide all their own energy needs
and most importantly charge their
EVs along with their homes.
Business Models for Battery Storage
Source : MNRE executive report March 2015
Source : IEA, Private ownership model

47. Utility Ownership
The role of a utility is to provide the infrastructure required for consumers
to have access to electricity – batteries could be viewed as a simple
extension of this infrastructure. Utilities could provide batteries at street
level that were owned and operated by the utility, dispatching during peak
times to reduce the demand and strain on their network.
Generator and utility Ownership ( PPP model )
The model is based on that the private consumers will purchase their own
battery storage system with or without any solar PV installations. The
power suppliers/utilities will provide them power with or without the
battery storage.
The consumers are independent to choose any utility to provide them
power so that in the absence of supply from the renewable sources, the
customer needs to pay the network providers for their services only along
the way.
Source : IEA, Utility ownership model

48. In order to ensure they can supply the required energy throughout the day,
retailers either hold Power Purchase Agreements (PPAs), or physically hedge
themselves with their own fleet of generators.
Business models like this if exercised may turn out to be more lucrative to
the market and motivate the consumers at the same time.
Source : IEA, Generator and Utility ownership model

49. Due to its high urban congestion, large domestic market and low
manufacturing and research and development costs, the potential for
electric vehicles in India is enormous. The current combination of high fuel
prices and government support is steadily increasing the demand for EVs in
India.
The success of the EV industry will depend on the acceptability by the
consumers, incentives and the success of the policies and mission plans of
the GoI.
If successful, it will be a great opportunity with EVs in reducing the carbon
footprint, dependence on crude oil imports, creating jobs and building a
new technology sector in India.
CONCLUSION