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Contents Scope Of The Report
Executive Summary
Introduction
Indian Automobile Sector: An Overview
The Electric Vehicle Market In India The Market Size Commercial Vs Personal Types Of Electric Vehicles In India
Electric Vehicles: How Is India Buying?
Global Comparisons
The Underlying Problems
Policy Measures and Recommendations
Case Studies Hybrid Vehicle Vs Electric Vehicle Are Electric Vehicles Taking Over The Traditional Automobile Sector?
Target Customers Future Trends In The Electric Vehicle Market The Electric Vehicle Startups Landscape Startup Overview Investment Statistics
Methodology
Categorical Split Electric Vehicle Startups Active Investors
EV In India: The Consumer Side Of The Story
Factors Driving Electric Vehicle Market
Glossary
Bibliography
SCOPE OF THE
Report
The global automotive industry is at the cusp of a paradigm shift from internal combustion engine vehicles to zero-emission vehicles. This is primarily due to the stringent regulatory interventions by governments in response to increasing greenhouse gas emissions and depleting air quality worldwide. India, too, is actively exploring cost-effective and viable solutions to address poor air quality in several of its cities. India, which meets more than 80% of its oil demand through imports is also focussing on reducing its excessive dependence on oil imports. The country has set a goal of a significant shift to an all-electric public fleet by 2030, necessitating attention and action by players across sectors including automobiles, power and utilities, and oil and gas. Given the scale of the Indian automotive market, any significant proportion of vehicle electrification is likely to present a multi-billion dollar opportunity, one that market players across sectors will find difficult to ignore as they risk losing out to competitors. The report aims to cover: Electric vehicle market size: Now and future Market opportunities being created to cater to the Indian electric vehicle market Impact on climate due to electrification of automobiles in India Funding scenario in Indian electric vehicle market Top electric vehicle startups in India How investors perceive the Indian electric vehicle market Top investors betting on Indian electric vehicle startups Central and state government policies Electric vehicle adoption: What India can learn from the US and China
Electric Vehicle Market Outlook Report, 2020
3
70%
4th
India is the 4th largest auto market
6.96%
Electric vehicles are projected to have market shares of 70% and 20% in the commercial vehicle and two-wheeler segments, respectively by 2030
$20 Bn Share of EV in commercial electric vehicles by 2030
CAGR of Indian automobile production between FY13 to FY19
167
30%
Active investors in electric vehicles startup ecosystem of India
Penetration of EVs in automobiles sales, target of Indian government by 2030
28 Mn
$601Mn Funding secured by Indian electric vehicle startups across 77 funding deals between 2014 and 2019
Indian electric vehicle market is expected to touch 28 Mn units by 2030
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Electric Vehicle Market Outlook Report, 2020
37%
By making passenger mobility shared, electric and connected, India can bring down its demand for transportation energy by 64% and reduce related carbon emissions by 37% till 2030
0.5%
Currently, India holds a share of less than 0.5% in the global electric vehicle market; China holds a leading position with a 33% share
350
India has around 350 public electric vehicle chargers and 57,000 petrol pumps as of 2019 (China had more than 200,000 charging points by 2016)
100 TWh If 80% of Indian population adopts electric vehicles, the total power demand could touch 100 TWh or about 5% of the country’s total electricity by 2030
INTRODUCTION To The Report
Electric vehicles (EVs) have witnessed an unprecedented
The two wheelers segment dominates the market in
global interest, emerging as one of the most promising
terms of volume owing to growing middle class and young
alternative power train technologies with zero tailpipe
population. Moreover, the growing interest of two-wheeler
emissions and long-term economic viability.
manufacturers in the rural markets further boosted the sector.
India, too, is actively considering electric vehicles to reduce its excessive dependence on oil imports and curb pollution
India is also a prominent auto exporter and has strong
levels. In addition, the country is also looking at electric
export growth expectations in the near future. Automobile
vehicles as a stepping stone in designing an intelligent
exports grew 14.5% during FY19 and are expected to
transport infrastructure. Startups and corporations alike
clock a CAGR of 3.05% between 2016 and 2026. Also,
have started making pilots with Ola Electric, a manufacturer
several initiatives taken by Government of India and major
of electric vehicles and batteries, emerging as a unicorn in
automobile players are expected to make the country a
2019.
leader in the two-wheeler and four-wheeler segments globally by 2020.
Though still in nascent stages in India, electrification of mobility is one of the largest segments within the automobile industry globally. India’s auto industry became the fourth largest in the world with sales increasing 9.5% to 4.02 Mn units in 2017 (excluding two wheelers) and emerged as the seventh largest manufacturer of commercial vehicles the next year.
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Indian Automobile Sector: An Overview
From the first car plied on Indian roads in 1897 to Jamshedji Tata becoming first Indian to own a car in 1901, Indian automobile sector, today, has grown to become the largest automotive market in the world. It was in 1942, that Hindustan Motors manufactured first automobile in India. However, the Indian automobile sector formally came into being in 1952 when the government appointed its first tariff commission in a bid to indigenise the industry. In the same year, India was introduced to passenger cars thanks to manufacturers such as Hindustan Motors, Premier Automobiles and Standard Motors.
India was an importer of automobiles
1930 1940
Tremendous trade restrictions could not boost the automobile unit
The Indian automobile industry started its own manufacturing unit
1950-60 The market was largely dominated by 1960-80
Hindustan Motors, with Ambassador model
Maruti came into the competition and swept the market
1983 The Government of India started
1984-92
promoting the automobile industry, Delhi Auto Expo was established
The year of Liberalization and opening up of the FDI
1992 1996
Almost all major car companies expanded their presence in India by
The major of Maruti Suzuki swept the market with 60% market share
2000
establishing manufacturing units India emerged as the 4th largest
2009
exporter of passenger cars after Japan, South Korea and Thailand
India become the 6th largest car manufacturer in the world. Today, India is Asia’s 2nd largest
2011
two-wheeler manufacturer
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Government Policies To Boost EV Charging Infrastructure
2017 In 2017, transport minister Nitin Gadkari had made a statement showing intent for India to move to 100% electric cars by 2030. In 2018, the government diluted its plans for electric passenger cars from 100% to 30%
2018
FEBRUARY
APRIL
Ministry of Power said that both Japanese and European standards for electric vehicle charging infrastructure will be adopted in India
FEBRUARY
JANUARY
Electric Vehicle Market Outlook Report, 2020
2019
10
The second phase of the FAME scheme gets delayed by six months. The delay is due to the lack of consensus among stakeholders within the government on the allocation of funds
DECEMBER
Central government increased the outlay for the first phase of Faster Adoption & Manufacturing of Hybrid and Electric vehicles (FAME) scheme to $126.74 Mn (INR 895 Cr)
The Goods and Services Tax (GST) council lowers rate on EVs from 12% to 5% and on electric chargers from 18% to 5%
MARCH
Individuals will be allowed to set up public EV charging stations without applying for licences
NOVEMBER
JULY
Phase I of the FAME scheme is extended for six months until September 30, 2017, with a slight modification
NOVEMBER
Ministry of Power directed that no separate licence will be needed for setting up EV charging stations
Ministry of Housing and Urban Affairs directed that residential and commercial buildings are to allot about 20% of the parking space for EV charging infrastructure
JULY
The Union Cabinet clears the FAME II scheme for promoting electric vehicles
AUGUST The government softens its stance on the timeframe for the transition to EVs. Under the revised plan, highly-polluted urban cities are to be targeted first
The Electric Vehicle Market In India
The Electric Vehicle Startup Landscape
$601 Mn+
Raised in 77 funding deals
Hero MotoCorp and TVS Motor Company
$2 Mn 167
Top investors in EV startups
Median funding amount in 2019 for EV startups
Active investors betting on Indian EV startups
OLA Electric
India’s top funded EV startup
Electric Vehicle Market Outlook Report, 2020
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EV In India: The Consumer Side
Factors Driving India’s Electric Vehicle Market
Climate Change
Pakistan
India
Bay of Bengal Arabian Sea
Absolute maximum temperature (oF) 40
50
60
70
80
90
100
110
120
Of all the most polluting nations – US, China, Russia, Japan and the EU block – only India’s carbon emissions are rising: it rose almost 5% in 2016. No one questions India’s right to develop, or the fact that its current emissions per person are tiny. But when building the new India for its 1.3 Bn people, whether it relies on coal and oil or clean, green energy will be a major factor in whether global warming can be tamed.
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Electric Vehicles: How Is India Buying?
While the government is pushing the rapid adoption of electric vehicles and incentivising industries through its policies and subsidies, the sales are still sluggish compared to other markets in the world. This is because of a gap in how consumers perceive electric vehicles compared to their conventional counterparts.
Major factors behind slow penetration of electric vehicles: A high price, which is around 2-2.5 times more than a comparable conventional vehicle Range per charge To offer a higher range, a higher battery capacity is needed in the vehicle which leads to an increase in the vehicle’s price and increases the price gap
On the other hand, lack of awareness on the advantages of electric vehicles is a deterrent. Electric vehicles offer a significant advantage on operating cost (running cost plus maintenance cost) which could be as low as one-fourth of that of a conventional vehicle. In comparison to personal vehicles, commercial vehicles such as taxis, buses and three-wheelers run 4-5 times longer distances every day. Therefore, for such high-mileage vehicles, savings on operating cost will pay back the initial high purchase price much faster compared to low mileage vehicles.
ICE Vs EV Vehicle
ICE Vehicle
Range
~300 miles per refuel (~480 km)
5 minutes Time
Electric Vehicle
~100 miles per Charge (~160 km)
35-40 minutes (Fast) 8 hours (Slow)
Source: SIAM
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46
Global Comparisons
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The Underlying Problems
Policy Measures And Recommendations
Indian States With An EV Policy Along with the central government, many state governments have also started developing policies on electric vehicles and charging infrastructure. These states are looking to take advantage of the opportunities presented by the upcoming transition to electric vehicles. Ten states have already declared electric vehicle policies.
Indian States Which Have Declared An EV Policy 12 out of the total 37 states and UTs have declared an EV policy
Punjab Uttarakhand
Delhi
Uttar Pradesh Bihar
Madhya Pradesh
Maharashtra
Telangana
Karnataka
Andhra Pradesh
Tamil Nadu Kerala
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Case Studies
Future Trends In The Electric Vehicle Market
Methodology This report presents the study of datasets related to electric vehicles companies (which means any entity which specialises in production or distribution of electric vehicles along with entities which act as an enabler to the ecosystem), the datasets are collected from both primary and secondary sources. The market size is calculated using the total addressable market (TAM) theory based on the number of electric vehicles estimated by Niti Aayog. The investment activity recorded in the report for the year 2019 is dated from 1st January to 26th December. The default base year for calculating growth rate (CAGR%) is 2015, unless mentioned otherwise. The segregation of funding stages in this report is done on the following basis— seed stage (before pre series A), bridge (transition funding rounds like Pre series A,B C), Growth Stage (Series A and B) and Late Stage (Series C and beyond). The median is calculated using quartile two of the data set. The future trends to look out for in 2019 is based on the problems these technologies are capable of solving in context of the electric vehicle adoption in the country. We arrived at this list by considering the social and economic problems these technologies will be able to solve better than their contemporaries. The top sectors and startup hubs are based on the number of deal counts poured in the respective sector/hub between 2014 to 2019. Our definition of tier 1 cities include— Delhi NCR, Bengaluru, Mumbai, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad. Whereas the “top three startup hubs” in the report is referred to Bengaluru, Delhi NCR and Mumbai, derived from their dominance in overall startup investment activity since 2014. The customer side analysis in the report is done by our external data partner, Cooltrack using the public discussion data related to relevant topics on social media and public forums.
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Electric Vehicle Market Outlook Report, 2020
Glossary PFCE Private Final Consumption Expenditure
EV Companies
Seed Stage
Any entity which specialises in production or distribution of electric vehicles along with entities which act as an enabler to the ecosystem
Upto seed funding round
Delhi NCR
Any transitional funding rounds
Delhi and its adjoining areas like Noida, Gurugram, Faridabad, etc
Growth Stage
Unicorn A unicorn is a startup valued at over $1 Bn
Soonicorns
Bridge Stage
Series A and B funding rounds
Late Stage Series C and beyond funding rounds
Startups that have a high chance of joining the unicorn club
VC
Average Ticket Size
Venture Capital
Funding amount/disclosed number of deals
YoY Year-on-Year
TAM Total Addressable Market
CO2 Carbon dioxide
2W Two wheeler
4W Four wheeler
EV Electric vehicle
kW Kilowatt
$XXK XX Thousand USD
$XX Mn XX Million USD
$XX Bn XX Billion USD
FAME Faster Adoption and Manufacturing of Electric Vehicles
NEMMP National Electric Mobility Mission Plan
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