Assignment Taken

Market Analysis

Case Understanding

In order to protect the renewable sources, automobile sector has come up with electric cars. Electric vehicles have a huge growth but its demand is quite low in India. Government is taking several initiatives towards the industry to promote e- vehicles. The government targets to achieve 30% of cars as electric by 2030. A team of entrepreneurs decided to join e-vehicle industry, with a maximum fund of 46 lac and 60 lac loan. The team does not have enough resources and needs to achieve break-even in the minimum time.

BCS Solution Summary

The Challenges for The Electric Vehicle Market 1. Inadequate charging infrastructure 2. Range anxiety among consumers 3. High price of EVs currently 4. Lack of options for high-performance EVs 5. Inadequate electricity supply in parts of India 6. Conventional cars do actually fit better consumer’s expectations especially if fuel efficiency continues to improve

Solution

MAJOR CHALLENGES

• Charging Infrastructure

India have only a few number of charging infrastructure as compared to other countries. The lack of private parking spaces is also a hindrance for electric vehicles adoption, and the lack of affordable renewable energy means charging EVs is putting a toll on the already stressed coal-powered electricity grid. . 

• High Price of Electric Vehicles

Further, the average cost of electric cars in India is much higher than the average economical car that runs on traditional fuel. The price of electric scooters and motorcycles in India is between the price range of INR 70K – INR 1.25 Lakh, as compared to INR 30K – INR 40K cost range of ICE bikes and even lower for scooters

• Range Anxiety

Range anxiety is what consumers suffer from knowing that the electric vehicle might not have sufficient range to take them to their destination. This is deeply linked to the lack of charging infrastructure in the country, that is still in developing phase.

 

SWOT ANALYSIS

STRENGHTS-

• Eco-friendly
• More energy efficient
• No emission of nitrogen
• Low running cost for maintenance

WEAKNESS-

• High price
• Limited range
• Needs time to recharge
• Lack of charging infrastructure
• Shortage of spare parts as compare to normal cars

OPPORTUNITY-

• Develop more fuel efficiency BEV and HEV
• Government subsidy
• Lower taxes

THREAT-

• Competition from petrol/diesel engine powered cars
• Increasing cost of inputs
• Rise in the price of electricity

 

PESTEL ANALYSIS

 

POLITICAL- Government encourage reduction in the tax rates to increase demand of e-vehicles. A lot of FDI is created in this sector. Government also aims to achieve the carbon reduction emission and have started many schemes and policies-FAME

ECONOMICAL-A huge reduction in the taxes and other duties by the government in the e-vehicle industry. As the buying capacity is increasing of the customer, people are more encouraged to buy and spend towards a car. The investors are also willing to spend if demand is more.

SOCIAL- E-vehicle will soon be recognized as a status of symbol, because of rapid urbanization. customer always wanted a more fuel -efficient car, with more technical facilities. E-car will have all those features, but require investment in the charging infrastructure.

TECHNOLOGICAL- Electric vehicles will improve the autonomy, as India is emerging as the hub of auto-manufacturing sector. The new technology will help in decreasing the cost and expenditure to the user.

ENVIRONMENTAL- Electric vehicles will help in reducing the carbon emissions of the country, and help to protect the renewable sources of energy. Government is also initiating towards to sustainable development goal.

LEGAL-The technology requires for manufacturing needs to be imported from various countries. As India is importing its parts from Japan and other nations which involve huge import duties. The government is also allowing special lanes and free parking spaces for e- vehicles.

Potential markets

• CO2 Emission in cities
• Electricity cost

 

 -CO2 emission in major Indian cities & facing problems from pollution

 

  Mumbai                                        3,320.66ghg         

  Pune                                              2,307.94ghg                

  Hyderabad                                   7,788.02ghg

  Gurugram                                     2,124.4ghg     

  DELHI                                           10,867.51ghg

 Kolkata                                          1,886.60ghg

 Bangalore                                    8,608.00ghg

 Chennai                                        4,180.28ghg

 

Electricity cost

                                                                                                  

Maharashtra                             Rs 8.8

Delhi                                            Rs 6.4

Karnataka                                    Rs 7.5

 

 As the carbon emission is high in the metro cities, the electricity cost per unit is also high.so that target market should be chosen carefully where people are willing to spend on e- vehicles considering the effect of carbon emissions.

 

 

 Competitors -2Wheeler                                                                                                                                          

 Revolt RV400                        Rs 100000

 Okinawa ridge                      Rs 55000

Avon E plus                           Rs 27000

Hero electric optima li        Rs 65000

Ujaas energy go                   Rs 37000

Bajaj chetak                         Rs 100000

 

Competitor 3-wheeler

 Piaggio                                                                        Rs 198000                                                                                   

 Treo                                                                            Rs 175000

Kinetic                                                                        Rs 148000                

 

 STEPS TO IMPROVE DEMAND

 

• Globally by using Electric vehicle index Norway ranks on 1st position in E-vehicles and India on 15th.
• Low demand is the reason behind electric vehicle slow growth. Charging infrastructure, requires a huge investment. Private investors are hesitant to make this investment on their own as there is less demand for customer segment.

       Limited charging infrastructure

· Invest in chargers in public spaces

· Provide incentives for installing chargers

 · Collaborate with private charging station providers

       Consumer misperceptions

• Develop a consumer education plan
• Build a trust among consumers for E -vehicles

      Consumer awareness plan

1. Electric cars operate at much higher efficiency at Indian roads than the fuel powered engine.

2. A high share of energy is lost in brake, which is recovered in the electric vehicle.

3. Hybrid or electric vehicles uses no extra energy in idle traffic, that is much higher in India than US or Europe.

4. Public parking spaces is free for E-vehicles.

5. Tax is 50% lower on E- vehicles than petrol/diesel cars.

 

Comparison of e-vehicles and petrol cars

                                                                  E- vehicles                                                Petrol

Full range/mileage                                        120km                                                  20km

Daily distance (assumed)                           50km                                                     50km

Energy consumption                                   16units                                                    40lt

Energy usage                                              16/120=0.13                                           50/20=2.5

Cost of electricity/petrol                          Rs 6.5per unit                                         Rs 77

Cost for 1 km                                              0.13*6.5=0.845                                       77*2.5=192.5

Cost over 50km                                         0.845*50=42.25                                     192.5

Expenditure over 1 month                   42.25*25= 1056.25                                   192.5*25=4812.5

(25 days)

 

SAVINGS =   4812.5-1056.25 = 3756.25

 

A SURVEY on Consumer behaviour towards Electric vehicles

 

           Factors the encourage people to buy electric vehicle

• Environmental effect
• Status & lifestyle
• New trend
• Low noise
• Low maintenance
• Power efficient

 

Factors that discourage people from buying electric vehicle

• Limited range
• Long recharging time
• High price
• Lack of consumer choice
• Lack of trust on new technology

 

E-Vehicles Future growth and analysis:

• By Reducing the cost of E-vehicles
• Developing a wider network of charging infrastructure
• Aligning consumer perception of E-vehicles with reality.

 

 

Conclusion

It is essential for an electric car to reduce their charging time and to choose cities with lower electricity cost. Another important factor to be considered is the availability of community charging stations. By using free software apps which use Google Maps to provide real time locations of community charging stations where all the required charging needs of customers can be satisfied

Attached File Details