New Business Models for Electric Vehicles:
Perspective from Frost & Sullivan, GM, Peugeot
    Citroën and Think’s Senior E...
Today’s Presenters

       Sarwant Singh, Global Partner Automotive &
       Transportation Practice Director
       Frost...
Current Electric Vehicle Industry Structure: Provides opportunity for a new entity
called Integrator to bring the EV servi...
Definition of an Integrator - Innovative enterprise that forms the single business
    interface managing diverse services...
Business Models Analysis: EVs will be sold through new channels such as
subscription-based energy packages to offset the i...
Breakdown of Energy Packages - Innovation lies in offsetting the high initial EV
cost by clubbing after-sales services as ...
Fleet Customer Total Cost of Ownership Analysis : A service Offering
around €550 to €650 Will Resonate Well with the Fleet...
Utilities Business Model – Revenue Generating Opportunities Are Mainly Outside Selling
Energy


                  Source O...
Q&A




      9
Next Steps

   Request a strategic approach document for EV Growth Partnership Service or Growth Consulting Service
   to ...
Your Feedback is Important to Us


What would you like to see from Frost & Sullivan’s Automotive Group?
•


•   Growth For...
For Additional Information




Monika Kwiecinska               Cyril Cromier
Corporate Communications        Sales Directo...
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New Business Models for Electric Vehicles: Perspective from Frost & Sullivan, GM, Peugeot Citroën and Think’s Senior Executives

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Presentation on new business models for electric vehicles with prospective from Frost & Sullivan, GM, Peugeot, Citroën, and Think's senior executives. Discusses current electric vehicle industry structure, business models analysis, breakdown of energy packages, fleet customer total cost of ownership analysis, and utilities business model.

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  • Thanks for sharing a very nice presentation. Actually I am planning for starting a small Completely Knocked Down assembly plant here in Nepal. It has been hard for the local banks here to convince.
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  • Very informative..Thanks for sharing. Auto Transport Forum come and share your ideas : http://www.movetransport.com/forum/index.php
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  • Glad you liked the presentation. If you would like additional information, please send me an e-mail at sarah.saatzer@frost.com.
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  • Very informative..Thanks for sharing.
    By the way, if you are looking for a trucking job, feel free to visit the site http://www.jobsfortruckers.com/ for more details.
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  • interesting presentation on Vehicles. by Move transport http://www.movetransport.com/ Car Transport, Vehicle Shipping, Auto Transport, Car Shipping, Vehicle Transport
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New Business Models for Electric Vehicles: Perspective from Frost & Sullivan, GM, Peugeot Citroën and Think’s Senior Executives

  1. 1. New Business Models for Electric Vehicles: Perspective from Frost & Sullivan, GM, Peugeot Citroën and Think’s Senior Executives December 17, 2009 3:00 P.M. GMT / 10:00 A.M. EST
  2. 2. Today’s Presenters Sarwant Singh, Global Partner Automotive & Transportation Practice Director Frost & Sullivan Benny Daniel, Consultant Richard Canny, CEO Frost & Sullivan Think Anthony L. Posawatz, P.E. (Tony) Vehicle Line Director, Chevrolet Volt Global Electric Vehicle Development GM Tobias Reich, Marketing Director Electric Vehicles PSA Peugeot Citroën
  3. 3. Current Electric Vehicle Industry Structure: Provides opportunity for a new entity called Integrator to bring the EV services and value proposition together Cooperation to simultaneously promote EV use and electricity as a fuel Integrators to create partnerships with Utilities, OEMs and Government Utilities Integrator OEMs Lower fuel Key Subsidies for dependency by Responsibility: EV purchase expanding the and Key Development of use of investment in Responsibility: Charging renewable R&D to reduce Infrastructure energy sources Promotion of EV emissions use Supplies Development of infrastructure to performing distribute their batteries energy Infrastructure Charging supplier System/Battery Station Government Manufacturers Manufacturers Could work to improve charging time and safety 3
  4. 4. Definition of an Integrator - Innovative enterprise that forms the single business interface managing diverse services delivered to the EV consumer Integrators may own and operate certain EV services provided to consumers, while sourcing others from strategic partners. Charging / Recycling / EV Charge Payment Maintenance/ Services Battery Power / Energy EV Sales Battery Options After-sales Service Stations Recovery • Integrators source • Telematic/ • Utilities emerging • IT industry or • Recycling • Consumers – extension arm of stations from navigation as OEM partners companies through the third-party services OEMs for fleet excess energy mgmt. manufacturers Possible Service Ownership generated from • OEMs selling • Utilities – / Partnership Scenarios solar / turbine • Integrators • Charging station through integrator showcasing installations • Utilities – develop their own manufacturers networks green credentials showcasing stations engineering • Transportation • OEMs using expertise • Utilities develop • Utilities – industry (rail, Internet-based • Battery suppliers their own / through trams, buses and sales channels • Battery swap sources charge renewable so on) specialists stations energy sources • OEMs selling • OEMs through • Mobile and through distributor distributor network service • OEMs from networks • OEMs develop networks providers distributor own / source networks charge stations • Integrators’ • Integrators – battery swapping through central divisions control centres Source: Frost & Sullivan 6 * 2 * 5 * 4 * 4 * 5 = 4,800 Theoretical Ownership / Partnership Combinations 4
  5. 5. Business Models Analysis: EVs will be sold through new channels such as subscription-based energy packages to offset the initial high cost of lithium-ion batteries Business Model 1 Business Model 2 Business Model 3 Business Model 4 TYPE Energy Package Maintenance Package Part Subsidy Full Subsidy COVER Partial Battery Energy Package+ Maintenance Maintenance Package+ Lease + Electricity Maintenance Package+ Discount Insurance+100% Discount ENERGY Monthly Bill Flat: Maximum 2,000 Flat: 25,000 Flat: 30,000 kms/year (Illustration Only) kms/month kms/year CONTRACT NA NA 4 years 7 years (Illustration Only) SUBSIDY NA NA 40% car price Free car MONTHLY Up to €150 Up to €350 €500- €800 ~ €900-€1,500 LEASE Other Possible Leasing Models Source: Frost & Sullivan Flexible Mileage Maximum number of Unlimited Miles Pay as you go miles Flexible Contract The customer opts for the number of years and a flexible mileage-customised lease 5
  6. 6. Breakdown of Energy Packages - Innovation lies in offsetting the high initial EV cost by clubbing after-sales services as a subscription energy package COSTS AFTER-SALES SERVICES Car Subscription Battery Public Battery Battery Rebates Car Price Insurance Maint. Recovery per Month Cost Charging Swapping Recovery Ass. ENERGY PACKAGE 1 between EVs and IC engine €150 / month €150 40% 40% Battery Recovery 60% price difference (65%) (60%) vehicles ENERGY PACKAGE 2 €350 / month €350 40% 40% Battery Recovery (70%) (75%) ENERGY PACKAGE 3 €800 / month €800 €3,000 PART 60% subsidy (80%) (100%) 0% Battery Recovery ENERGY PACKAGE 4 €1,500 / month €1500 €3,000 100% subsidy (100%) (100%) 0% Battery Recovery Source: Frost & Sullivan 6
  7. 7. Fleet Customer Total Cost of Ownership Analysis : A service Offering around €550 to €650 Will Resonate Well with the Fleet Customer Question: Please estimate how much you spend on the following per month (Euros) – based on 100 Fleet Manager Interviews in France, UK and Germany €645 €627 €546 €435 €396 €265 56% 63% 27% 53% 63% 28% Builing & Bus Delivery Car Rental Public Sector Postal Utility Maintenance Fuel Maintenance Financing Leasing Insurance Road TaxRoad Congestion Others • Interestingly, fuel amounts for up to 2/3 of fleet running costs across businesses interviewed with Business Delivery and Public sector seeing it take up the largest share of their Cost of Ownership • EV’s should aim to address the Fuel and Road Taxing costs for businesses * Based on 93 Interviews with Fleet Drivers who are involved in the choice and running costs of their vehicle 7
  8. 8. Utilities Business Model – Revenue Generating Opportunities Are Mainly Outside Selling Energy Source Of Revenue Generation CAGR Calculated over 5 years CAGR = 242% 1. Revenues from Selling Electricity (Over 5 years) €390Mn - €400Mn CAGR = 153% 2. Revenues from selling Charging Stations (Over 5 years) €650Mn - €700Mn CAGR = 158% 3. Revenues from Installation & Maintenance of Charging Stations (Over 5 years) €490Mn - €500Mn CAGR = 153% 4. Revenues from Diagnostics (Revenue Opportunity to start from 3rd year) €600K - €625K CAGR = 242% 5. Revenues from Garage Referrals (Over 5 years) €25K - €27K CAGR = 127% 6. Revenues from Music Download (Revenue Opportunity to start €150K - €165K from 3rd year) CAGR = 161% 7. Revenues from Others (Over 5 years) € 340Mn - € 345Mn TOTAL: €1.9Bn - €2Bn Capital Investment Includes: (1st yr) New Energy Capacity €48Mn - €50Mn Network Recurring Cost Charging Station Purchase Cost Fixed & Operating Cost Installation and Maintenance cost €640Mn - €650Mn Logistics, Admin, Selling, general , rental, Marketing and Labour Cost 8
  9. 9. Q&A 9
  10. 10. Next Steps Request a strategic approach document for EV Growth Partnership Service or Growth Consulting Service to support you and your team to accelerate the growth of your company. (myfrost@frost.com) +44 (0)20 7343 8383 Frost & Sullivan Workshop: Growth Opportunities and New Business Models in the Electric Vehicles Market Dates: Tuesday 26th (1:00pm – 3:00pm) January 2010 Venues: EDTA Conference and Annual Meeting at the Washington Auto Show (www.electricdrive.org) Join us at our annual Growth, Innovation and Leadership 2010: A Frost & Sullivan Global Congress on Corporate Growth London, United Kingdom, 17th to 19th May 2010 (www.gil-global.com) Register for Frost & Sullivan Annual Electric Vehicle Workshop: ELECTRIC VEHICLES UNPLUGGED New Business Models and Infrastructure Development Trends Dates: Tuesday 22nd (afternoon) and Wednesday 23rd June (all day) 2010 Venues: The Lords Terrace in the House of Lords and the SMMT Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 10
  11. 11. Your Feedback is Important to Us What would you like to see from Frost & Sullivan’s Automotive Group? • • Growth Forecasts? • Competitive Structure? • Emerging Mobility Trends? • Strategic Recommendations? • Other? Please inform us by taking our survey 11
  12. 12. For Additional Information Monika Kwiecinska Cyril Cromier Corporate Communications Sales Director +48 223904127 Automotive & Transportation monika.kwiecinska@frost.com +33 (1) 42 81 22 44 cyril.cromier@frost.com Brian Drake Sarwant Singh Business Development Director Partner & Practice Director (+1) 248-836-8260 Automotive & Transportation Practice brian.drake@frost.com +44 207 915 7843 sarwant.singh@frost.com 12

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