Market Research Report : Electric Vehicle Market in India 2013 by Netscribes, Inc.

Insert Cover Image using Slide Master View Do not distort

Electric Vehicle Market India Electric Vehicle Market – 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 & Challenges

Government Initiatives ii i

T d Trends

Drivers: • Government Initiatives • Rise in Fuel Costs • Low Operating and Maintenance Cost • Foreign Dependence for Crude Oil g p • Environment Friendly

Challenges: Ch ll • Low Vehicle Performance • Inefficient Battery • Price Constraint Power Shortage • Power Shortage • Lack of Infrastructure

 Alternate Fuels for Surface Transportation Programme (AFSTP)  National Electric Mobility Mission Plan 20‐‐ • Demand Generation Demand Generation • Research and Development • Manufacturing Incentives • Infrastructure Development  Entry of New Players Entry of New Players  Retro Hybrid Fitment Kit

Major Players

Competition

Company A

Company B

Company C

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Company D

Company E

•Macro Economic Indicators •Introduction •Market Overview • Electric Vehicle • Major Segments Major Segments

•Market Analysis •Drivers Drivers & Challenges & Challenges •Government Initiatives •Trends Trends •Competitive Landscape •Strategic Recommendations g •Appendix ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Macro Economic Indicators (1/3) GDP at Factor Cost: X INR tn a

x1 y1

x2 y2 z2

y4 z4

y3 z3

e Q ‐

Q‐ 20‐‐

20‐‐

Q‐

20‐‐

Inflation Rate: Y % f

g h

20‐‐

i j k 20‐‐

20‐‐

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

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

SAMPLE Electric Vehicle – Introduction

• Electric vehicles are propelled by an electric motor (or motors) powered by rechargeable battery packs o Available in various segments across the globe, ranging from bicycles to cars, three wheelers to heavy commercial vehicles Available 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 1

Component 2 Component 2

Component 3 Component 3

Component 4 Component 4

Types of Electric Vehicles – Technology‐wise Battery Electric Vehicles

• Description 1

Plug in Hybrid Electric Vehicles

• Description 2

BEV

Hybrid Electric Vehicles

• Description 4

• Description 3

PHEV ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Fuel Cell Electric Vehicles

HEV

FCEV 5

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 in the 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 Size & Growth Market Size & Growth

Market Share – Segment‐wise (20‐‐‐‐‐) Market Share – Segment‐wise (20‐‐‐‐‐) Segment 1

mn units a6

Segment 2 Segment 3

+x%

1% 1% 3%

Others

a4 a3

c a1

95%

d 20‐‐‐‐‐

20‐‐‐‐‐e

20‐‐‐‐e

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Supply Chain Cost Comparison – Electric Vehicle vs. ICE Vehicle Vehicle Lifecycle Cost Comparison – Supply Chain Wise Research and D l Development t

Component P d ti Production

a3%

Assemblyy

Marketingg

Sales and Di t ib ti Distribution

After Sales S i Service

a4%

b c d

a9%

e f

a5%

a10%

a6%

g h

a1%

a2% a7%

a8%

a11%

a12%

0 Electric Vehicle (High Volume) ( g )

ICE vehicle

> Accounts for ~x% of vehicle lifecycle cost for a 4W ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

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

Market Size & Growth

• Segment 1 has huge potential in India wherein consumers have higher preference for Technology1 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 improvements in technology and infrastructure will drive this segment

units 120,000

100,000

+x%

80,000

60,000 40,000 20,000

a4 a1

20‐‐‐‐‐

20‐‐‐‐‐ e

a3 3

20‐‐‐‐‐ e

Consumer Preference – Electric Vehicle Technology‐wise Consumer Preference – Electric Vehicle Technology‐wise Share of Consumers prefer Segment 1 than ICE

Preference for Technology 1 Preference for Technology 2

32%‐‐33%

Others

17%‐18% 70%‐75%

Preference for Technology 3

25%‐30%

50%

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

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

LCV

Bus

Ranking

Factor 1

Factor 2

Factor 3

Factor 4

Factor 5

SAMPLE ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Drivers & Challenges – Summary

Challenges h ll Low Vehicle Performance Inefficient Battery

Drivers Government Initiatives Rise in Fuel Costs

Price Constraint Power Shortage Lack of Infrastructure

Low Operating and Maintenance Cost Foreign Dependence for Crude Oil Environment Friendly

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Government initiatives and subsidies to emerge as a major growth… Government Initiatives (1/3)

Impact

• Finding 1 • Finding 2 • Finding 3 • Finding 4  Sub‐finding 1  Sub‐finding 2

• Finding 5

x% Subsidy on base price y% exemption on VAT Refund of road tax and registration charges

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

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‐‐‐‐‐ • OEMs were required to register with Organization 1 in order to benefit from this scheme OEM i d i i hO i i 1i d b fi f hi h  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 Incentives

Type 1

INR c1

Type 2

INR c2

Segment 2

Type 3

Segment 3

Type 4

INR c4 mn

Segment 4

Type 5

‐

INR c5 mn

Segment 1

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

z% ex‐factory cost of vehicles

INR c3

NEMMP 20‐‐ to support the long term growth and development of the domestic electric vehicle market National Electric Mobility Mission Plan 20‐‐ (NEMMP 20‐‐)

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

B Benefits fi

SAMPLE R l Results

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

NEMMP 20‐‐ – Potential Roadmap for Hybridization/ Electrification Electric Vehicle Penetration

“Analysis 4” “Analysis Analysis 3 3”

Finding 1 Finding 1

3 Point 3 3. Point 3 Finding 2

“Analysis 2”

SAMPLE 2. Point 2

1. Point 1 4. Point 4 Year

“Analysis 1” 20‐‐

20‐‐

20‐‐‐‐‐

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

20‐‐ 14

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

Function 1

Function 2

Demand Generation

Research and Development

Focus Areas A

Infrastructure Development

Function 4

Manufacturing Incentives

SAMPLE ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Function 3

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

Technology 1

Technology 2

Technology 3

Electric Vehicle Segments Electric Vehicle Segments

Segment 1 Segment 1

Segment 2 Segment 2

Segment 3 Segment 3

Total Potential Demand for Electric Vehicles (20‐‐e)

Potential Demand for Electric Vehicles (20‐‐e) ( (mn units) it )

a1‐a2

a3‐a4

a5‐a6

a7‐a8

• Finding 1 • Finding 2 Finding 2 • Finding 3 • Finding 4

SAMPLE ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

High Priority R&D Area for Electric Vehicle in India (1/2) Technology Ranking – Priority‐ wise a1

SAMPLE B Battery Cell C ll

BMS

• Finding 1 • Finding 2  Sub‐finding 1

Power Electronics Power Electronics (Hybrids)

• Finding 3 Fi di 3  Sub‐finding 2  Sub‐finding 3

El t i M t Electric Motor

a5 5

Transmission System Transmission System (Hybrids)

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Phased manufacturing strategy for electric vehicles in India • Finding 1 • Finding 2 • Finding 3 g

SAMPLE

Phase 1 Year x

Condition 1 Condition 1

Strategy 1 Strategy 1

Initiative 1 Initiative 1

Condition 2

Strategy 2

Initiative 2

Condition 2

Strategy 3

Initiative 3

Condition 2

Strategy 4

Initiative 4

Phase 2 Year y

Phase 3 Phase 3 Year z

Phase 4 > Year q

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

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

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

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

Share of consumers considering the following Sh f id i h f ll i parameters to be a key barrier for adoption % 50 40

54%

46%

54%

46%

Segment 1 a3

Segment 2 a4 a5

30 20

10 0

Range

Charging Time

Charging Infrastructure

Sensitivityy • Sensitivity 1 • Inference 1

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

Assumption 1 leading to Finding 1

Assumption 2 leading to Finding 2

Extra Power Generation Required 20‐‐

SAMPLE S

Extra Power Generation Required 20‐‐

a1 MW

(with x% peak charging)

Charging Infrastructure Charging Infrastructure Investment 20‐‐

INR b1 bn

Share of Total no. of Charging Terminals (20‐‐) Type 1

Type 2

a2 MW

INR b2 bn

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

Type 3

Type 1

Type 2

Type 3 in ‘000

in ‘000 20‐‐

20‐‐

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Total Proposed Investment under NEMMP 20‐‐ – Electric Vehicle Segment‐wise (1/4) Total Proposed Investment (INR bn): Scenario II – HG/HEV (Lower Limit) Segment 1

Segment 2

Segment 3

Segment 5

Segment 6

t2 t1

60.6% 52% t4

68% 5%

t5 t3

7% % 10%

33%

89%

45.5%

80%

10% 6%

10%

8% 8% 4% 3W

5% 2%

LCV

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

45.5% 0.5% 0.5% 8.2% Bus

7.4% 20.3% 4.0% 7.6% Total

Trends – Summary

Entry of New Players

Key Trends

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Retro Fitment Hybrid Kits

Competitive Benchmarking (1/5) Public Trading Comparables (FY 20‐‐) Company A

Company B

Company C

Market Capitalization (INR mn)

‐

Share Price (INR)

‐

EV/EBITDA (x)

SAMPLE ‐

‐

EV/Revenue (x) /

‐

PE Ratio

‐

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Public: Domestic Company – Company A (1/4) Company Information Corporate Address

Offices and Centres – India

Company Address

Tel No. Tel No.

+91‐xx‐ 91 xx yyyyyyyyy

Fax No.

+91‐ww‐zzzzzzzz

Website

www.companyA.com

Year of Incorporation

19‐‐

Ticker Symbol

‐‐‐‐‐‐

Stock Exchange

Exchange Name

Products and Services Products and Services Category

Head Office Products/Services

Key People Segment

Others

Product 1, product 2, product 3,………………….

,p ,p Product 1, product 2, product 3………

N Name

D i ti Designation

Person 1

Designation

Person 2

Designation

Person 3

Designation

Person 4

Designation

BEARINGS MARKET IN INDIA 2013.PPT

Public: Domestic Company – Company A (2/4) Financial Snapshot i i lS h Total Income INR mn

K Key Ratios i Profit INR mn

Total Income Profit / Loss

b x1

h 20‐‐

20‐‐

Financial Summary

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

Financial Summary Indicators

Value

Market Capitalization (INR)

EPS (INR) PE Ratio (Absolute)

y‐o‐y change (20‐‐‐‐‐)

20‐‐

‐3.31

7.37%

10.69%

11.63%

14.80%

‐6.73

4.02%

10.75%

12.08%

7.61%

‐5.22

6.52%

11.74%

15.66%

11.00%

‐7.25

5.51%

12.76%

13.22%

9.02%

‐2.22

8.50%

10.73%

12.11%

16.70%

‐7.92

20.82%

28.74%

28.25%

56.05%

‐1.89

6.67%

8.56%

10.77%

14.08%

‐4.90

26.02%

30.92%

33.44%

41.15%

3.47

92.50%

89.03%

87.70%

84.70%

5.78

33.11%

27.33%

22.91%

25.64%

‐0.24

0.82% %

1.06% %

1.21% %

1.74% %

Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets

Cost Ratios

• 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‐‐

Total Enterprise Value (INR)

Particulars

z2 z3 z4

Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Interest costs (% of Sales)

Liquidity Ratios Current Ratio Cash Ratio

0.43%

2.49

2.48

4.42

2.60

‐14.77%

0.53

0.63

1.76

1.09

7.22%

0.32

0.30

0.01

0.02

5.46%

0.24

0.23

0.01

0.02

‐12.08%

9.10

10.35

10.14

8.78

23.09%

3.47

2.82

2.72

2.69

14.00%

0.89

0.78

0.88

0.92

6.29%

1.66

1.56

1.78

2.26

5.98%

2.78

2.62

2.30

3.66

14.65%

1.02

0.89

1.02

1.13

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio b i l i Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

BEARINGS MARKET IN INDIA 2013.PPT

Public: Domestic Company – Company A (3/4) Key Business Segments

100% 80%

Segment 1

Segment 3

Segment 2

Segment 4

21%

11%

76%

88%

0% 1%

20‐‐

60% 40% 20% 0%

Key Geographic Segments

Business Highlights (1/2)

11%

85%

Country 1

19% 65%

100% 80% 60%

87%

97%

95%

13%

20‐‐

40% 20%

SAMPLE 4% 1% 20‐‐

13%

20‐‐

Country 2

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

Electric Vehicle Division

• Company has developed and introduced electric bikes and scooters under the brand name brand 1 with an annual installed capacity of c1 mn units

industry 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 MARKET IN INDIA 2013.PPT

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

• Strength 1 Strength 1 • Strength 2 • Strength 3

• Weakness 1 Weakness 1 • Weakness 2 • Weakness 3

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

• Threat 1 • Threat 2 • Threat 3 Threat 3

SAMPLE BEARINGS MARKET IN INDIA 2013.PPT

Strategic Recommendations (1/2) Manufacturers • Recommendation 1 • Recommendation 2 • Recommendation 3 • Recommendation 4

Marketing • Recommendation 5 • Recommendation 6 • Recommendation 7 R d ti 7 • Recommendation 8

Target Consumers Target Consumers

• Recommendation 9 Recommendation 10 • Recommendation 10

ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT

Thank you for the attention Electric 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 E‐Mail: info@netscribes.com Follow us on:

About Netscribes, Inc. Netscribes, Inc. is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of , g g f g p y p p f investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes Inc. is a one‐stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” Netscribes is is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. ELECTRIC VEHICLE MARKET IN INDIA 2013.PPT