The EV Effect

Assignment Taken

Assignment 1-8

Case Understanding

• Renewable energy concept is on the boom and renewable energy-based automobiles are the next future. • People nowadays are more dependent on their own vehicles rather than using public transport since the covid pandemic. • This has led to pollution increase and certain health problems. Also, excessive use of natural resources can deplete them in near future. • Government has decided to make 30% of the total vehicles electric by 2030. • To enter the Automobile Industry especially EV market, has been a challenge to most of the companies. • Issues with Electric Vehicles. o According to my team, the first and foremost challenge a company will face is changing the mindset of people. The people are more trusting towards petrol and diesel running automobiles. o Second challenge will be more electric vehicles and less charging stations. The uncertainty factor of not getting your vehicle charged and its discharge at any moment, though the indicators will indicate the charging requirement. o Efficiency is also the biggest concern. It has been observed that electric vehicles have faced problems in water logging areas. • Our team has been working on providing solutions to these problems.

BCS Solution Summary

The Solution Summary: The Fundraising is the primary Funding source and also the contribution made by the team members. The hiring and retention process includes no new hiring but hiring after the sufficient funds and providing merchandising and goodies to the interns and employees and equity to the team(Co-Founders) The development of the product and market entry: The company plans to modify the prototype and afterwards the company can launch different products and place products in the market via collaborations.

Solution

Proposal for Fund Raising.

1. Explain your project. Why are you raising money?

Our project deals with the electric vehicles. Electric vehicles are 100 percent eco-friendly as they run on electrically powered engines. It does not emit toxic gases or smoke in the environment as it runs on a clean energy source. They are even better than hybrid cars as hybrids running on gas produce emissions. We’ll be contributing to a healthy and green climate.

2. Convey the importance of your cause. People want to see their donations as significant and important.

• EVs have the benefit of flexible charging.
• EVs typically achieve better fuel economy and have lower fuel costs than similar conventional vehicles.
• EVs produce zero tailpipe emissions, electric vehicles can have significant emissions benefits over conventional vehicles.

3. Put a name to the face. Before making a donation, people need to empathize with your cause.

Environmental issues are the harmful effects of human activity on the biophysical environment. Environment destruction caused by humans is a global, ongoing problem. By the year 2050, the global human population is expected to grow by 2 billion people, thereby reaching a level of 9.6 billion people. The human effects on Earth can be seen in many different ways. A main effect, is an increase in global temperature. According to the report ”Our Changing Climate”, the global warming that has been going on for the past 50 years is primarily due to human activities. The main problem that caused global warming in the first place are emissions caused by the burning of fossil fuels.

4. Introduce yourself.

We, Team LHARA envisions a country running on electric cars. A future where people breathe a pure emission free air. EV being the future of automobile industry has a great future opportunities leading to a better environment. Surely certain problems lay with the idea in today’s world but we innovatively provide solutions to these problems. Our vision is environment friendly, safe and a futuristic investment.

 

Provide a detailed overview of the financial target, Product Mix & Expansion Plan for Next 5 Year.

Expansion Plan:

My team planned to innovate and expand the business in the market by introducing product mix. Different products lined up in the market for sales. Initially taking the horizontal differentiation approach tending to Vertical differentiation approach.

• We will certainly look in to the market scenario and what are the market’s response is toward Electric Cars and will launch a customizable luxury Electric Car with in-built solar panel and auto driving facility and facial detection and obstacle detection in case the particularly asks for.
• Hiring and retention plan, according to the HR Department,

In next 5 years we are planning to hire an experienced work force with good practical knowledge for the:​​

• Manufacturing Unit (ITI holders)
• Management Department
• Automobile Engineers
• Mechanical and Electrical engineers

And we are also planning to hire a CEO for our company.

HIRING PROCESS

We’ll be looking for the employees with the respective education required for their respective post or position either by Headhunting or posting jobs on online portals like Naukri, Monster and Shine.

We’ll be providing trainings to the freshers or any person employed by the company by our experienced employees, i.e., in-house training will be provided.

RETENTION PLAN

There will be profit sharing whenever more revenue is generated by the company. By providing 1% of their respective salaries as the profit sharing. The interns will be provided with merchandise and goodies with good reccomendation letters and job opportunities in the company. All the permanent employees will be provided goodies and merchandise.

IT:

Will certainly look in to the market scenario and what are the market’s response is toward Electric Cars and will launch a customizable luxury Electric Car with inbuilt solar panel and auto driving facility and facial detection and obstacle detection in case the particularly asks for.

We also will try to come up with battery swap stations, where people will come get there battery swapped within less than 10 min so waiting time of the customers will be cut off and this will reduce the cost of battery replacement over the customers.

 

Finance:

Though we were lacking of fund, we are able to manage our finance including money contributed by us, raising money from investors and taking loan from banks. For working capital, we have chosen bank as our primary source. Another area of focus was to distribute ownership among investor and promoters who are doing other services for our business, this we have decided to do away with things mentioned in the attachment. This attachment contains owner and equity distribution. To get external investment we have prepared a fund-raising proposal that we would all be presenting before institutional investors. Other area of finance we try to leverage govt subsidies for setting up unit and manufacturing EVs.

 

Product Mix: Starting from two wheelers, the team envisions three wheelers and four wheelers and also customisable luxury cars line in the near future. Not just limited to the cars the products include swappable batteries and charging stations. Also the company products will include the solar panels in the products which will rely on heliotropism.

 

 

Prepare Product development plan.

 

Using “The Design Thinking Approach”:

After having a word with the team, we decided to take the design thinking approach. This approach consists of 4 steps:

• Empathize with users: Due to the price hike of petrol and diesel day by day and the excess of the emission produced the users of automobile industry are in quite a discomfort and also the recent unavailability of semiconductors led to the slowdown in production of vehicles.
• Define the problem: The problem that lay with the today’s automobile industry is the pricing of the fuel and the unavailability of parts and in EV the problems of speed and charging stations.
• Brainstorm potential solutions: The team together brainstormed various solutions regarding the problems arise due to the typical automobile industry and the new problems that new entrants face.
• Our engineers have already done build a prototype and tested it.

 

Operation plans for financial year 2021-22

The operation plan of any organisation can be built in 5 steps:

• Examination of the organisation’s vision: The vision is to create a country running on electric cars. A future where people breathe a pure emission free air. EV being the future of automobile industry has a great future opportunity leading to a better environment. Providing solution to this age automobile industry problems.
• Define Goals and strategy: The goals and the strategy of the company are to create EV’s that are easy to operate, provide good speed and an amazing battery backup.
• Planning out activities: The departments have been working on the several activities of the organisation for the initial year such as collection and distribution of funds, hiring and modifying the prototype and finally marketing the product.
• The Assignment of roles and responsibilities: Initially, the roles and responsibilities have been distributed among the 8 team members as new hirings at this moment will not only leave us with less time but also will target our funds directly.
• Monitoring and Adjusting: The monitoring and adjusting of the plans will be depending on the funds raised by the company and will be planned accordingly as nothing can be assumed at this moment of time.

 

 

 

Prepare A market entry, distribution strategy and brand building plan.

• Market entry: Market entry is about setting the goals, researching the market, choosing the mode of entry and funds. The team has already developed a prototype which we are planning to exhibit into the events like Auto-Expo which will also lead us to raise funds and to enter the market. The goal of the company is crystal clear as we plan to enter the market with two-wheelers and the rise to other products and services.
• Distribution Strategy: while having the team meeting the distribution strategy is to open few exclusive showrooms and place our product in the other markets via collaboration.
• Brand Building Plan: Brand building plan recommendations were to first place the product in the market and then making meaningful collabs and organising campaigns so as to build trust in the market and among the customers and selling a lifestyle to potential target audience.

 

Prepare a Hiring, Training & Retention Plan for 2021-22.

The HR department have made a Hiring, training and retention plan which all in all includes the distribution of the duties among the team members due to lack of funds and no new hiring proving internships to college students so as to get innovative ideas and reward them with merchandise and goodies. The members will be presented equity and one member will be chosen as the acting CEO of the company for the year 2021-22. The retention plan includes the profit sharing of the among the employees on 1% of their salary.

 

 

Decide on Features (USP’s) which will be present in the vehicle and how those features will help sales.

 As we all know that price of petrol has crossed ₹110/litres, and as an average Indian customer this price impacts my monthly budgets and savings. As a daily Up Down from work to home which is at least at 16 kms and costs me around…

16 x2x26= 832 km

And avg. milage of a petrol bike is 50kmpl

So, my monthly petrol consumption is 16.64 litres

Which will cost me around 16.64x110= ₹1830.4

And if we talk about LHARA thrust and ss

They both consume 5 units and 4 units

Then maximum cost burden will be 5x8x8= ₹320

Around 8 to 9 times less

So, it is economical as well as its stylish look and streamlined body make it unique.

Low maintenance cost, speed, on sight service, fast charging support feature loaded machine with charging and Bluetooth support.

 

 

Market analysis of electric vehicles.

The EV market is down but has a potential to be on the boom in next few years. The analysis done by the marketing head describes the potential of all types of electric vehicles and its need in the current scenario. As the government is already planning to make the market EV friendly the market forecasting shows the boom of EVs in near future.

Conclusion

The Conclusion of this business case is that the automobile industry requires the EVs as a new product so as to built a good market and also save the environment. Though the EV requires funding and is a little costly but is a one time investment leading to the saving of fossil fuels and new innovative ideas can also increase the market share of EV in the industry.

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