Executive Summary

Go GreenBOV was started in 2007 of ACTD to reduce India’s Carbon footprint and provide

cleaner and cleaner technology for the next generation. It has commenced its operations in India

in the year 2007 with Indian headquarters at Bangalore. It has a nationwide presence in 4

different districts of south India, with an employee base of 60 highly skilled professionals. The

company is expanding its employee base in India. The company has a loyal customer base all

over the company. The company manufactures battery operated vehicles for different segments

of society and is highly innovative in its approach with cutting edge technology for the first time

in India. The company has got its own factory and warehouse for manufacturing its vehicles and

storing the inventory. The clientele base would also have trust in the quality of products and

services offered by the company.

Electric vehicle industry in India is still at a nascent stage and is expected to grow by 45% in

2012. Electric Vehicle industry mainly comprises of electric two wheelers, electric three

wheelers and electric cars. The electric vehicle market is mainly dominated by electric two

wheelers with 97.5%b of EV market. More and more number of participants are entering EV

market with automobile firms launching Electric vehicle model of their conventional cars and

bikes. Also there is an increase in the number of mergers and acquisitions in the electric vehicle

industry. Most of the players in the electric vehicle industry operates in two wheeler segment

with only one major company operating in the electric car industry i.e. Mahindra and Mahindra

During the course of my internship in the Marketing Department, I was assigned the task

of carrying out market research on Electric Ride on Toys for kids/ Electric vehicles and

expanding the Dealer network and B2B network of company in Bangalore and other parts of

Karnataka and Tamil Nadu. The research showed that the Ride-on toy segment of electric toy

industry is in the introduction stage of product life cycle. The market is mainly dominated with

Chinese brands with only few other brands like BSA, Haolaixi, Home toys. The future of Ride-

on Electric toys looks bright but there are some factors like high price, product quality, security

concerns which may be a roadblock in the growth of Ride-on toy industry. For sale of electric

bikes I visted different Food delivery restaurants, courier guys, pharmaceutical companies,

supermarkets, florists and other home delivery guys and showcased our products to them. Then I

followed up with all the prospective guys in Bangalore and converted some of them as our final

clients. I also visited various corporate offices and showcased our products to them. The main

problem that Go GreenBOV is facing is that they donot have a dealership network outside of

Bangalore. So I did a tour of Karnataka and Tamil to find out prospective dealers in these areas.

For the tour I first did a research on which could be places where there could be maximum

potential for electric ride on bikes. We looked at various parameters like per capita income,

electricity availability etc and based on those parameters we decided the districts where we have

maximum potential for electric vehicles. Initially we looked at tire I cities only. After wards we

made the road map. I got some prospective dealers for Go GreenBOV from both Karnataka and

Tamil Nadu. It was a great challenge to get dealers in Karnataka and Tamil Nadu because of the

bad perception about electric bike industry in the minds of the customer and road conditions

which were not suitable for electric bikes. The study reports were presented to the management

which facilitated them in understanding the future prospects of Electric Ride on toys/Electric

Bikes in India and helped them in making strategies for expanding their business in different

parts of south India.

I was also involved in showroom selling of Go GreenBOV bikes and also meeting

government officials for showcasing our bikes to them. I prepared Collaterals for giving

presentation about Go GreenBOV and its products to different clients like IKYA etc. I also

helped company in finding data for prospective clients in Karnataka, Tamil Nadu and Andhra

Pradesh

Apart from the core project, I was also assigned in other marketing activities such as

Social Media activation of Go GreenBOV, promotional activities for Go GreenBOV, doing

competitive analysis for Go GreenBOV products, suggesting a suitable name for one of the Go

GreenBOV products and HR activities like carrying out placement drive for Go GreenBOV in

different colleges like Ramaiah University etc. Promotional activities included putting stalls in

different areas of Bangalore, distributing pamphlets through newspaper and also giving ads in

different online sites like IndiaMart, Grotal etc.

The internship opportunity has provided me with better learning and understanding of

Electric Vehicle industry (two wheelers, three wheelers) which has enormous future growth and

potential. The Internship opportunity has helped him in getting valuable sales experience which

will of great help in my future endeavors. In Go GreenBOV I got an opportunity to work in

multicultural teams

Part A – My Company Profile

A1. Description of the Internship

Title of the Project :Assessing the market potential of

Electric bikes

Name of the student : Bidyut Ray

Name of the IIP Company : Go GreenBOV

Location : Bangalore

Department : Marketing Department

Name and address of the

Industry Mentor : Mr. Dhivik Reddy

Executive Director

Marketing Department

# 123/49, East End, 3rd C Main, 100 ft

Ring Road

JP Nagar 3rd Phase

Bangalore 560100.

Industry mentor’s number : +91 9731955559

Name of Faculty Mentor :

A2. Company Profile

Company Name : Go GreenBOV

Location : JP Nagar, Bangalore.

Annual Turnover : 33 cr

No of employees : 60

Segments catered : Home Delivery Restaurants

Supermarkets

Courier Industry

Florist

Automobile

Pharmaceutical Industry

Newspaper Industry

Hotel Industry

Educational Institutes

Market share : 4%

1. Industry ProfileThe automotive industry in India is one of the larger markets in the world. It had previously been

one of the fastest growing globally, but is currently experiencing flat or negative growth rates.

India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the

world, with an annual production of more than 3.9 million units in 2011. According to recent

reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the

world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada,

Mexico, Russia, Spain, France, Brazil), grew 16 to 18 percent to sell around three million units

in the course of 2011 and 2012. In 2009, India emerged as Asia's fourth largest exporter of

passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to

become Asia's third largest exporter of passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive

vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second

(after China) fastest growing automobile market in the world in that year. According to the

Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4

million by 2015, no longer 5 million as previously projected.

Status of automobile industry in 2013-14:

A total of 2,968,201 vehicles were sold in India during the first two months of the financial year

2013-14, thus registering a feeble decrease of 0.64% as against same period of 2012-13. The

sales stood at 2,987,438 in April-May for 2012.

One of the key highlights of the year so far is the dip in sales of LCV Trucks by 2.38% as against

the previous year. Slight growths were registered in two and three wheelers while the other

segments posted declines. In terms of production two wheeler production increases by 18.10%,

while passenger vehicle segment decreases by 10.25%. The two wheeler export segment is

forced down to 16.50% due to weak demands while commercial vehicle suffered further blow as

their exports decreased by 19.47%.

Production: April – May FY 2013-14So far in this financial year, a total of 3,422,144 vehicles were produced which is 3.14% less

than what was during the same period in 2012. The production of three wheelers had increased

by 18.10% and commercial vehicles by 6.64%. Meanwhile there is a decline in the production of

passenger vehicles during the April-May period of 2013 as against the same period 2012. Two

wheeler production has also decreased by 2.97%.

Figure1: Domestic Sales

Two Wheeler Market in India

According to Care research it is estimated marginal improvement in the economic scenario and

expects the industry to grow by around 8-9 per cent in FY14.The motorcycle segment that has

been mainstay for the industry since last two decades, has been witnessing slowdown in growth

levels during past 4-5 years. For FY13 motorcycle demand growth remained around 1 per cent

for first eleven months. Impact on income levels in urban areas owing to slowdown in industrial

and service activities has strained the demand for motorcycles in FY13. Furthermore, growing

popularity of ungeared scooters has also added to the woes of the motorcycle manufacturers.

CARE Research foresees it would be difficult for the segment to retain the strong growth levels

it has witnessed in past one decade owing to rising pressure due to substitution by scooters.

Figure 2: Two Wheeler sales

Ungeared scooter likely to remain growth engine in near term, the ungeared

scooter segment has been witnessing robust growth trend since last 4-5 years. The

scooter manufacturers which initially targeted working women population have

off-late expanded their customer base by launching products catering to male

buyers. For example, new models like HMSI Aviator, TVS Wego, Suzuki Access,

Mahindra Rodeo, etc. has been able to lure considerable proportion of middle and

upper middle class male buyers (primarily in age bracket greater than 35 years) for

second vehicle. Hence, inspite of the current challenging scenario, ungeared

scooter segment has been able to grow by 16 per cent during April-February period

of FY13. CARE Research foresees, scooter segment to remain the growth engine

for two wheeler industry in near to medium term period.

Two wheeler industry likely to register a growth of 8-9 per cent in FY14. CARE

Research estimates marginal improvement in the economic scenario and expects

the industry to grow by around 8-9 per cent in FY14. The growth would be aided

by moderation in inflation post first half along with the assumption of normal

monsoon season. The motorcycle segment is likely to grow in a range of 6-7 per

cent in FY14. The scooter segment is expected to remain the growth driver and is

estimated to observe a growth of around 13-14 per cent for FY14. CARE Research

foresees, demand from rural and semi-urban areas would drive the two wheeler

demand growth in near to medium term period.

Electric VehicleToday India is one of the top ten automotive markets in the world and given its burgeoning

middle class population with buying potential and the steady economic growth, accelerating

automotive sales is expected to continue. In the last couple of years, there has been a lot of

discussion around the prices of fuel – apart from the deregulation of petrol prices. The potential

for alternative technologies in automobiles such as electric vehicles (EV) in India, as in the case

of many other comparable markets, depends on improved battery technologies, driving ranges,

government incentives, regulations, lower prices and better charging infrastructure.

97.50 %

2.50 %

Two WheelerThree Wheeler

The Indian electric vehicle industry

mainly consists of electric two

wheelers, three wheelers and

electric four wheelers. The

industry is mainly dominated by

two wheelers with 97.5 % share in

the total electric vehicle segment.

There are lot of emerging players

Figure 3: Distribution of electric vehicle market

There are many players in the electric two wheeler segment but only one dominant player in the

electric car segment. In southern part of India the market is very fragmented with all the

companies relatively new in this field. The major players in Electric two wheeler segment in

southern part of India are Amphere, Go GreenBOV and John Motors. In northern part of India

the major players are Yo Bikes and Hero Electric

At present the demand for electric vehicles in India is very small. Only 1% of two wheeler

market in India is electric two-wheeler and 2-3% of car market is E-car market. Many analysts

have the opinion that electric vehicles lack the practicality and luxury that petrol/Diesel vehicles

have been able to offer

Electric Vehicle market in India

The EV market is estimated to grow 50 times from

1 Lac unit sold in 2009-10 to 4-5 million units by

2020 .EV two-wheelers have seen a recent

reversal of fortunes, 26000 vehicles in 2008-09 to

around 3000 in 2009-10. The growth of market is

mainly driven by factors like increasing fuel prices

Figure 4: Electric and hybrid vehicle market Size

Only 1% of two wheeler market in India is electric two-wheeler and 2-3% of car market is E-car

market.

The market share of electric and hybrid vehicles is expected to increase at a tremendous pace in

2013

The below table shows the key drivers and challenges in electric vehicle market

Drivers- Increasing Crude oil prices- Low maintenance cost- Increasing demand for green

vehicles in foreign market- Manufactures providing

incentives to attract customers

Challenges- EVs to move from concept to

daily use- High price- Lack of supply of spare parts- Government Initiatives- Charging infrastructure- Lack of optimum business

models

Figure 6: Electric vehicle share of retail market

The petrol prices in India are increasing at a tremendous pace and expected to reach 100 by

2015.So rise in petrol price may result in increase in sales of electric vehicles in India. Also

electric vehicles are maintenance free since there are no moving parts inside the vehicle. But

there are some challenges that the electric vehicle market is facing today. At present India lacks

infrastructure to support mobility of electric vehicles in India. There are hardly any charging

stations in India to support electric vehicles in India. Also there is no support from government

in the form of rebate in excise duty etc to help in growth of electric vehicle industry in India.

Pros and Cons of EV

Pros

People who buy EVs are well aware of the features and how to use it

They are upscale customers and the EVs are used as a second or third vehicle in the

family

Second car market is developing among the elite families, and women show a preference

to EVs due to easy handling

Dealer network is getting developed (post acquisition by Mahindra in the case of Reva)

Cons

Public perception on EVs is that its an under powered vehicle at higher cost

The comparison done is directly against a high performance petrol car (which should not

be the case)

Efficient batteries usage and Charging know-how to End-Customers is the need of the

hour

The design of the vehicles are so toyish that one can’t be proud of owning an EV

Lack of spare parts and good skilled technicians for maintenance purpose

Very less localization of EV components (motors controllers and batteries esp. Li-on, are

imported from China, Taiwan & USA)