Market Research Report : Electric vehicle market in india 2014 - Sample

Insert Cover Image using Slide Master View

Do not distort

Electric Vehicle Market – India

November 2014

2 ELECTRIC VEHICLE MARKET IN INDIA 2014.PPT

Executive Summary

Market

Drivers & Challenges

Competition

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

Trends Entry of New Players

Retro Hybrid Fitment Kit

Drivers:

• Government Initiatives

• Rise in Fuel Costs

• Low Operating and Maintenance Cost

• Foreign Dependence for Crude Oil

• Environment Friendly

Government Initiatives

Alternate Fuels for Surface Transportation Programme (AFSTP)

National Electric Mobility Mission Plan 20--

• Demand Generation

• Research and Development

• Manufacturing Incentives

• Infrastructure Development

Challenges:

• Low Vehicle Performance

• Inefficient Battery

• Price Constraint

• Power Shortage

• Lack of Infrastructure

Major Players

Company A Company B Company C Company D Company E

3

•Macro Economic Indicators

•Introduction

•Market Overview

• Electric Vehicle

• Major Segments

•Market Analysis

•Drivers & Challenges

•Government Initiatives

•Trends

•Competitive Landscape

•Strategic Recommendations

•Appendix ELECTRIC VEHICLE MARKET IN INDIA 2014.PPT

4

SAMPLE Macro Economic Indicators (1/3)

INR tn

a

b

c

d

e

Q-

y4

z4

k4

Q-

y3

z3

k3

Q-

x2

y2

z2

k2

Q -

x1

y1

z1

k1

20-- 20-- 20-- 20--

GDP at Factor Cost: X

Inflation Rate: Y

%

f

g

h

i

j

k

20--

a5

20--

a4

20--

a3

20--

a2

20--

a1

ELECTRIC VEHICLE MARKET IN INDIA 2014.PPT

5

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 packs

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

Electric Vehicle – Introduction

Electric drive train primarily consists:

Component 1 Component 2 Component 3 Component 4

Types of Electric Vehicles – Technology-wise

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

Battery Electric Vehicles Plug in Hybrid Electric

Vehicles Hybrid Electric Vehicles Fuel Cell Electric Vehicles

BEV PHEV HEV FCEV


6

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

mn units

a

b

c

d

+x%

20----e

a6

20-----e

a5

20-----e

a4

20-----e

a3

20-----e

a2

20-----

a1 95%

3% 1%

1%

Others

Segment 3

Segment 2

Segment 1


7

Supply Chain Cost Comparison – Electric Vehicle vs. ICE Vehicle

Research and Development

Assembly Marketing Component Production

Sales and Distribution

After Sales Service

a

b

c

d

e

f

g

h

i

0

a12% a11%

a10% a9%

a8% a7%

a6% a5%

a4% a3%

a2% a1%

ICE vehicle Electric Vehicle (High Volume)

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

Vehicle Lifecycle Cost Comparison – Supply Chain Wise


8

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

Market Overview – Segment 1

Consumer Preference – Electric Vehicle Technology-wise

0

20,000

40,000

60,000

80,000

100,000

120,000

units

20----- e

+x%

a6

20----- e 20----- e

a5

20----- e 20----- e

a3 a1

20-----

a4

a2

70%-75% 25%-30%

Share of Consumers prefer Segment 1 than ICE

Others

50%

32%--33% 17%-18%

Preference for Technology 1



Poor pick up, low top speed and battery replacement issues are

restricting the adoption of Technology 3 type Segment 1

electric vehicles

• 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

this segment

Market Size & Growth


9

SAMPLE

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

Comparative Factors 4W 2W 3W LCV Bus Ranking

Factor 1

Factor 2

Factor 3

Factor 4

Factor 5

Finding 1

4

5

3

2

1


10

Drivers & Challenges – Summary

Drivers

Government Initiatives

Rise in Fuel Costs

Low Operating and Maintenance Cost

Foreign Dependence for Crude Oil

Environment Friendly

Challenges

Low Vehicle Performance

Inefficient Battery

Price Constraint

Power Shortage

Lack of Infrastructure


11

Impact

Government initiatives and subsidies to emerge as a major growth…

Government 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


12

Alternate Fuels for Surface Transportation Program was adopted to…

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

Targets and Incentive Layout (FY20-- and FY20--)

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

vehicle Cap on

Incentives

Segment 1 Type 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

Segment 3 Type 4 a4 b4 INR c4 mn

Segment 4 Type 5 - - INR c5 mn

• 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

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

Scheme Adoption


13

SAMPLE

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 for accomplishing considerable penetration of electric vehicles (including hybrids) in India by 20--

Benefits

Benefits

• 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

Results

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


14

NEMMP 20-- – Potential Roadmap for Hybridization/ Electrification

20-- 20-- 20----- 20--

Year

Electric Vehicle Penetration

4. Point 4

1. Point 1

2. Point 2

3. Point 3

“Analysis 2”

“Analysis 3”

“Analysis 4”

“Analysis 1”

Finding 2

Finding 1

SAMPLE


15

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

• Finding 1

• Finding 2

• Finding 3

• Finding 4

Electric Vehicle Technology

Electric Vehicle Segments

Potential Demand for Electric Vehicles (20--e)

(mn units)

Technology 1 Technology 2 Technology 3

Segment 1 Segment 2 Segment 3

a1-a2 a3-a4 a5-a6

Total Potential Demand for

Electric Vehicles (20--e)

a7-a8

SAMPLE


16

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

Transmission System (Hybrids)

Electric Motor

Power Electronics (Hybrids)

BMS

Battery Cell

Technology Ranking – Priority-

wise

• Finding 1

• Finding 2

Sub-finding 1

• Finding 3

Sub-finding 2

Sub-finding 3

a1

a2

a3

a4

a5


17

Phased manufacturing strategy for electric vehicles in India

• Finding 1 • Finding 2 • Finding 3

Phase 1

Phase 2

Phase 3

Phase 4

> Year q

Year y

Year x

Year z

Condition 1 Initiative 1 Strategy 1




SAMPLE


18

SAMPLE

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

Share of consumers considering technology 1

scooters to be worse than ICE (based on

range)

Two Wheelers

54% 46%

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

0

10

20

30

40

50

%

Charging Infrastructure

a6 a5

Charging Time

a4 a3

Range

a2 a1

Sensitivity

• Sensitivity 1

• Inference 1

Share of consumers considering technology 2

bikes to be worse than ICE (based on range)

54% 46%

Segment 2 Segment 1


19

SAMPLE

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

Assumption 1 leading to Finding 1 Assumption 2 leading to Finding 2

Four Wheelers

Extra Power Generation Required 20--

(with x% peak charging)

a1 MW

Charging Infrastructure Investment 20--

INR b1 bn

20-- t t1 t2 t3

Type 3 Type 2 Type 1

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

Extra Power Generation Required 20--

(with x% peak charging)

a2 MW

Charging Infrastructure Investment 20--

INR b2 bn

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

20-- c c1 c2 c4

Type 3 Type 2 Type 1

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

in ‘000 in ‘000


20

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

4W

t1

6%

10%

10%

7%

68%

Segment 6 Segment 5 Segment 3 Segment 2 Segment 1

2W

t2

10%

33%

5%

52%

t3

4% 8% 8%

80%

3W LCV

t4

2% 5%

4%

89%

Bus

t5

8.2% 0.5%

0.5%

45.5%

45.5%

Total

t6

7.6%

4.0%

20.3%

7.4%

60.6%

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


21

Trends – Summary

Entry of New Players

Retro Fitment Hybrid Kits

Key Trends


22

SAMPLE

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) - - -

EV/Revenue (x) - - -

PE Ratio - - -


23

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

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

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

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

Name Designation

Person 1 Designation




Head Office

Corporate Address Company Address

Tel No. +91-xx- yyyyyyyyy

Fax No. +91-ww-zzzzzzzz

Website www.companyA.com

Year of Incorporation 19--

Ticker Symbol ------

Stock Exchange Exchange Name


24

Financial Snapshot Key Ratios

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--

• 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) z1

Total Enterprise Value (INR) z2

EPS (INR) z3

PE Ratio (Absolute) z4

Profit / Loss

Total Income

20--

d

Profit INR mn

f

g

h

Total Income INR mn

a

b

y4

x4

y3

20--

x3

20--

c

y2

x2

20--

y1

x1


Particulars y-o-y change

(20-----) 20-- 20-- 20-- 20--

Profitability Ratios Operating Margin -3.31 7.37% 10.69% 11.63% 14.80%

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%

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

Cost Ratios Operating 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%

Liquidity Ratios Current Ratio 0.43% 2.49 2.48 4.42 2.60

Cash Ratio -14.77% 0.53 0.63 1.76 1.09

Leverage Ratios Debt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02

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 Ratios Fixed 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

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


25

SAMPLE

Key Business Segments Key Geographic Segments

Business Highlights (1/2)

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

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 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

76% 88% 85% 65%

0%

20%

40%

60%

80%

100%

20--

13% 2%

19%

20--

4% 1%

11%

20--

0% 1%

11%

20--

3%

21%

Segment 4

Segment 3

Segment 2

Segment 1

13%0%

20%

40%

60%

80%

100%

20--

5%

95%

20--

3%

97%

20--

3%

97%

20--

87%

Country 2 Country 1



26 ELECTRIC VEHICLE MARKET IN INDIA 2014.PPT

T O

W S

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

27

Strategic Recommendations (1/2)

Manufacturers

• Recommendation 1




Marketing





Target Consumers




28

Electric Vehicle Market – India 2014 report is part of Netscribes’ Automotive and Logistics Industry Series. For any queries or customized research requirements, contact us at:


Thank you for the attention

About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of 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.

Phone: +91 22 4098 7600 E-Mail: [email protected]

http://www.netscribes.com/

mailto:[email protected]

Documents

Market Research Report : Electric vehicle market in india 2014 - Sample