NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 02 Submission of Akriti Kulshrestha Submission Date & Time : 2021-10-19 02:08:08

1. Annual Operating Plan
Americanspurchasedalmost18,000 plug-inelectricvehicles(PEVs) in2011, a strongfirstyearfor
these transformativevehicles.Recently,private industryandgovernmenthave investedvaluable
resourcesindeveloping,promoting,anddeployingPEVs.Thesevehiclesofferanuncommon
opportunitytoaddressenergysecurity,airquality,climatechange, andeconomicgrowth.However,
marketgrowthis uncertaindue topolicy,economic,andtechnical challenges,andotheradvanced
vehicle technologymayprove more popularwithconsumersovertime.There are stepsthatcanbe
takennow,however,tomeetsome of these challengesandease adoptionof PEVsnationwide.InAn
ActionPlanto Integrate Plug-inElectricVehicleswiththe U.S.Electrical Grid,the PEV Dialogue Group
laysout some of these critical stepsneededtoenable arobustnational PEV market.
WithPEVs’importantopportunitiesandchallengesinmind,the CenterforClimate andEnergy
Solutions(C2ES) convenedthe PEV Dialogue Group—aunique,diverse setof stakeholderscomposed
of leadersfromthe publicandprivate sectorsalongwithnon-governmental organizations.The
Group developedanActionPlantofill gapsinthe existingworkonPEVsusingaconsensusprocess
that aimedtooptimize publicandprivate investmentsandavoidedfavoringcertainPEV technology.
The Group beganby identifyingkeychallengesandobjectivesthatexistingPEV effortshave not
addressedadequately,suchasintegratingPEVswiththe electrical grid.The Groupdidnot focuson
reducingvehicle upfrontcostdirectly,sincefederal andstate tax creditsare alreadyinplace.The
Group thenhelda seriesof face-to-face meetingstohashoutthe detailsof the ActionPlanoverthe
course of one year.The planrepresentsaunique andvaluable contributiontothe national
conversationonPEVsbyidentifyingpractical stepsthatpolicymakers,regulators,local andstate
officials,privatemarketparticipants,andothersshouldconsiderasPEVsbecome more broadly
available inthe comingyears.The GroupbelievesPEVscouldbe animportantpartof the vehicle
marketinthe UnitedStatesandworldwide if theyare givenafairchance to compete with
conventional vehicles.The Groupidentifiedaseriesof market-basedactionsforall stakeholdersthat
fosterinnovation,minimizepubliccost,educate consumers,andmaintainelectrical gridreliability.
The plan recommendsspecificactionsinfourcategoriessummarizedbelow:
1. Create a ConsistentRegulatoryFramework Nationwide: Regulationsbystate publicutility
commissionsthatare compatible acrossthe countrycan helpfosterinnovationandincrease
the PEV value propositionwhile alsomaintainingthe reliabilityof the electricalgrid.
2. Optimize Publicand Private InvestmentsinCharging Infrastructure: There are
opportunitiestoaccelerate private investment,encouraginginnovative businessmodels
while alsoacknowledgingthatPEVswarrantsome publicinvestmentincharging
infrastructure.
3. Facilitate PEV Rollout: Connectingstakeholderstoprovide asatisfactoryPEV andelectric
vehicle supplyequipment(EVSE) purchase andhome EVSE installationisanecessarystepto
seal the deal once a consumercommitsto purchasingaPEV.
4. Educate Consumers:Explainingthe PEV value propositionandbridgingthe consumer
informationgapaboutPEV technologycanbe accomplishedthroughacombination of
cutting-edge onlineresourcesandtraditional touch-and-feelexperiences.

2. The ActionPlanrepresentsPhase Iof a largerinitiativetopave the wayfor PEV adoptionnationwide
by helpinglevelthe playingfield.Phase IIaimstoworkwithstakeholders “onthe ground”to go
aboutimplementingthe ActionPlanwithleadersacrossthe country.
Create a ConsistentRegulatory
Framework Nationwide
 4 Principlesof UtilityRegulation
 Protectthe reliabilityof the grid
 Minimize costtothe electricitydistributionsystem
 Encourage transportationelectrification
 Provide consistenttreatmentbetweenPEVsand
loadswithcomparable powerrequirementswithin
each rate class
 FocusAreasfor RegulatoryAction(utilityandother)
 Residential &commercial EVSEinstallation
 Residential &commercial electricityrate structure
 Transportationinfrastructure finance
 Vehicle chargingstandards
 Protectingconsumerprivacy
Optimize Public& Private Investments
of Charging Infrastructure Regarding
Location, Amount, & Type
 AssessPEV suitabilitybasedonconsumerinterest,
gasoline &electricityprices,existingregulatory
environment,local government&utilityinvolvement,
area geography,travel patterns,&expected
environmental &economicbenefits
 Estimate chargingequipment&infrastructure needs
basedon consumerinterest&travel patterns
 Estimate extentof publicinvestmentinEVSEbased
on consumerinterest,private sectorinvestments,&
state/local governmentpolicy
Facilitate PEV Rollout  Expedite EVSEhome installationprocess
 Cooperativelyremove local andstate marketbarriers
for PEV service providers

3. The table belowprovidesanoverview of the ActionPlan,whichisfleshedoutin greatdetail inthe
bodyof the report.Nexttoeach actioncomponentare a numberof individual actionsorthe
principlesforthe individual actions.Manyactivitiesforthese actionscanoccur concurrently.
Businesses,electricutilities,government,and non-governmental organizations(NGOs) willall playa
role ineach actioncomponent.
Create a ConsistentRegulatoryFramework Nationwide
 Residential & Commercial EVSE Installation: Stakeholdersshouldjointlycreate a
competitiveandinnovative market forresidential andcommercial PEV chargingservices.
DecisionsbyPublicUtilityCommissions(PUCs),local government,andPEV service providers
regardinghouseholdEVSEinstallationshouldstreamline the installationprocess.
Regulationsshouldreflect the local characteristicsof markets,potentialPEV users,PEV
service providers,andelectricutilities.
 Residential & Commercial ElectricityRate Structure: Stakeholdersshouldworktogetherto
determine electricityrate structuresthatmaintainthe reliabilityof the electrical gridand
rewardhouseholdsforchargingPEVsatoff-peakhours.Rate structuresshouldoffer
householdschoices,includingoptionsthatbetterreflectthe costof electricitygeneration.
 Transportation Infrastructure Finance: Stakeholdersshouldworktogethertodetermine
howPEV ownerscanpay theirfairshare of transportationinfrastructure maintenance.
Permanentortemporarymethodsshouldbe implementedinawaythat doesnotaffectPEV
marketgrowthbefore PEVshave a noticeable impactontax revenue fora state.
 Vehicle ChargingStandards: Voluntarystandardsbodiesshouldworktogether,withthe
assistance of stakeholders,todevelopvehiclechargingstandardsandbestpracticesrelated
to the vehicle chargingconnector,PEV interconnectionandcommunicationwiththe
electrical grid,andEVSEinstallation.
 ProtectingConsumerPrivacy: Stakeholdersshouldensure thatindividual identityis
impossible togleanfromdatacollectedfromEVSEandvehiclesreleasedtoNGOs,
government,andotherresearcherswhilealsomaintainingthe usefulnessof these datafor
researchers.
Optimize Publicand Private InvestmentsinCharging Infrastructure
Educate Consumers  Developconsumerwebplatformandothermaterials
to understandPEV value proposition
 Helpconsumersunderstandtotal costof ownership
(e.g.,fuel &maintenance cost)
 Estimate a broadset of benefits(e.g.,fuelprice
certainty,environmental &energysecuritybenefits)
 Close PEV technologyinformationgap

4.  AssessPEV Feasibility:Stakeholdersshouldcooperativelydevelopamethodtoassessthe
suitabilityof deployingPEVsinageographicareaandshare thisinformationwitharea
governments.
 Estimate ChargingEquipmentand Infrastructure Needs: Stakeholdersshouldcollaborate to
estimate chargingequipmentandinfrastructure needsinageographicareabasedon the
expectedPEVsinanarea,travel patterns,andarea geography.
 Estimate the Extent of PublicInvestmentin EVSE: Stakeholdersshouldworktogetherto
estimate the amountof publicinvestmentinanarea that isappropriate toovercome
existingmarketdeficiencies.
Facilitate PEV Rollout
 Expedite EVSE Home Installation: StakeholdersshoulddesignanexpeditedEVSEhome
installationprocess.A localitycanspeeduppermittingandinspectionprocessestoreduce
overall installationtime.Localitiescanalsopromote training,bestpracticesasidentifiedby
early-actioncities,andguidelinesforelectrical contractors.PUCsandelectricutilitiesshould
provide assistance whencreatingthisprocesstoensure regulatorycompliance.Stepsshould
alsobe takentoencourage utilitynotificationaboutEVSEinstallation.
 Remove Market Barriers for EVSE Service Providers: Stakeholdersshouldcooperatively
remove local andstate marketbarriersfor PEV service providers.Legal andregulatory
hurdlesthatpreventaPEV service providerfromcompetinginanareacouldexist.PEV
service providersshouldidentifylocal andstate barriersthatpreventthemfromintroducing
theirproductin a market.Theyshouldworktogetherwithautomakers,PUCs,andlocal and
state governmenttoclearthose barriersandfacilitate new marketintroduction.Local and
state governmentshouldencouragethe trainingof inspectorsandelectrical contractorson
all aspectsof EVSEinstallation.Face-to-face meetingsbetweenPEV serviceprovider
representativesandgovernmentofficialscanbeginthisprocess.
Educate Consumers
 Create Tools to HelpConsumersUnderstandPEV Value Proposition: The value proposition
PEVsprovide includestangible operationalcostsavingssuchas lowerfuel andmaintenance
costs throughoutthe vehicle’slifetime.Inthe shortterm, however,consumersmayfind
non-financialbenefitsmore valuable,likethe drivingexperience orthe statementdrivinga
PEV conveys.Since consumersattainmostof theirinformationaboutvehiclesonline,
stakeholdersshouldcooperateonunbiasedwebtoolsthataccuratelycommunicate the PEV
value proposition.
 Close the PEV Technology InformationGap: The focus of an efforttoclose the technology
informationgapshouldbe toincrease PEV publicity,developwebtoolsonPEV technology,
and improve stakeholderoutreach.Stakeholdersshoulddevelopengagingandsophisticated
webtoolsto educate consumersaboutthe differencebetweenPEVs,otheralternative
vehicles,andconventional vehicles.While consumersobtainmostof theirinformationabout
vehiclesonline,there isnoreplacingtestdrivesandothervaluable hands-onexperiences.
Consumerswill ultimatelydecidewhetherPEVswillsucceedornotinthe vehicle marketplace.The
inaugural yearindicatesthere isstrongconsumerinterest,butthe numberof earlyadoptersandthe
abilityof PEVstoreach the mainstreamconsumerare still uncertain.The benefitsPEVsprovide
warrant actionby relevantstakeholderstolevelthe playingfieldinordertoprovide afairchance for

5. these vehiclestocompete withconventional vehicles.Implementingthe stepslaidoutinthe PEV
Dialogue Group’sActionPlanwill enableamore viable transitiontoanationwide PEV market.
Anyindividual/entitysettingupaPCS will needtohave the followingminimuminfrastructure as
describedinthe notification:
Each charging stationisrequiredtohave a minimumof three fastchargers:a CCS,a CHAdeMoanda
Type-2AC.While the formertwowill be requiredtooperate on50kW/ 200-1000V, the Type-2would
be 22kW/ 380-480V. Additionally,the chargingstationwill alsohave twoslow charge points - a
Bharat DC-001 (15 kW/72-200V) and a Bharat AC-001 (10 kW/ 230V).
A typical 50 kWhDCFC costs overRs 1.5 million.Since presentmodelsof EVssoldinIndiacannotbe
chargedabove 1C rate and batteriesare 11kWh to 25kWh capacity,investmentinDCFCof over25
kWh wouldyieldunappealingreturns,unlessmanufacturersroll outelectriccarswithbatteries
capable of fast chargingwithDC outputinthe range of 400-500V or higher.Thiswill eventually
increase the capacityutilizationatPCSand enhance revenuesforcharginginfrastructure providers,
makinginvestmentinapublicchargingstationan attractive option.

6. Charging Standards Application:
The IS:17017-1 publishedbyBISinAugust2018 recommendsbothCCS-2andCHAdeMO.In2017, a
committee constitutedbyDepartmentof HeavyIndustries(DHI) issuedBharatchargerspecifications
for ACand DC chargers: Bharat EV Charger AC001 & DC001. These are slow chargerswithDC output
below120 Volts.BIShasagreedto retainthese standardswhichare supportingthe EVspresently
operatinginIndia.These are expectedtowitherawayasnew EVs are rolledoutwithbatteries
capable of fast chargingwithDC outputinthe range of 400-500V or higher.
All standardswill co-existinIndia:CCS-2,CHAdeMOandthe Bharatchargers. Teslacars, according
to recentreports will use CCSstandardwhenlaunchedinIndia.
The status can be summarizedas:
 Two wheelerscome withsmall sizebatterieswhichinmanycasescanbe pulledoutand
takento homes/offices/shopsandchargedfromnormal wall sockets;orcan be connectedto
any PCS.
 Three wheelersare ideal candidatesfor batteryswapping.Inthisscenario,batteriesmaybe
chargedin a large industrial scale facilityandchargedbatteriesare truckedtopointsof 3-
wheelerconcentrationwhere a3-wheelerdrivercanswapthe usedbatterywitha fully
chargedone.Alternatively,technologyproprietorsmayinstall swapstationsata PCS.3-
wheelerscouldalsobe chargedat anyPCS.
 Buseswithbatterysizes>100kWh wouldbe soldwithproprietarychargingstandards
recommendedbythe batterymanufacturer.Thesebatterieswill costseveral millionrupees
and itis notadvisable tocharge from anyPCS.Bus operatorswill install the chargingdevices
supplied(orrecommended) bythe busmanufactureratbusdepotsand busdepotsas
required.

7.  Presentmodelsof electriccarscome with varioussizesof batteries - 11kWh (Mahindrae20)
to 40kWh (NissanLeaf) to>90kWh (TeslaModel S).These EVsrequire DCFCsforfast
charging.The whole issue of inter-operabilityof EVSEfordifferentEV modelsisessentially
limitedtocars.
In Indiasofar onlyMahindra ElectricandTata Motors have launchedelectriccars.The present
batteriesinthese carsare notsuitable forchargingabove 1C rate.The off take of electriccarsmay
be slowas individualbuyersmightwatchthe space andmove withcautionasin othergeographies.
The initial pushforelectriccarsis expectedfromtaxi fleetoperators,Governmentdepartments,
publicsectorundertakingsandlarge corporates.
Couple of Mahindrae2o Pluselectriccarschargingat Mumbai DC fast charger - DC-001
Cost Estimatesfor a Typical PublicCharging Station (PCS):
The Capex and Opex of a PCS comprisingof minimuminfrastructurerequiredasperthe GoI
notification are estimatedbelow:

8. *The cost of swap station is considered to beborneby the swap station technology proprietor.PCS
providesspacefora swap station in return of margin on sale of electricity.
**Land lease rentalis assumed to below as per Delhi EV policy guidelineson providing land atbare
minimumlease rentalsto charging infrastructureproviders.
Revenue Projectionsfroma Typical PublicCharging Station (PCS)
Revenue projectionfromthe PCSbusinessiscalculatedinthe nexttable basedonthe following
assumptions:
1. 20 hours of chargingoperationsfor30 days/month
2. CapacityUtilizationFactor(CUF) of PCS setupconsideredat15% for Year-1, 25% for Year-2,
40% forYear-3, 65% forYear-4 and 85% for Year-5 (optimisticscenario)
3. Electricitytariff tothe DISCOMisconsideredaspassthroughto consumer
4. A marginof Rs 2.5 on electricitytariff isconsideredinScenario-A

9. 5. A marginof Rs 3 in first& secondyear,Rs 2.5 inthird& fourthyearand Rs 2 from fifthyear
on wardsis consideredinScenario-B
6. EVSE ManagementSoftware fee considered@10% of net marginonelectricitytariff
As maybe observedfromTable 1and 2, for an initial investmentof Rs2.95 milliontosetupaPCS,
the netcumulative returnin5 yearsis Rs 1.77 millionunderScenario-AandRs1.53 millionunder
Scenario-B.Inboththe casesthere islittle or no incentive forthirdpartiestosetupandoperate PCS.
Levyingamargin more than3 rupeeswill make the EV tariff atpar withcommercial electricitytariff.
In the presentscenario,PCSbusinessisnotviable forindividuals/entitiestoinvest.
The governmentmayfail toencourage thirdpartiestosetup publicchargingstationstoaccelerate
electricmobilityadoption.However,incase of Delhi,asper Delhi ElectricVehicle Policy,GNCTDwill
provide acapital subsidycoveringcostof chargersand installationexpenses.Consideringthe cost
estimatesinTable-1,if 100%cost of chargersis subsidized,the IRRonsettingupa publiccharging
stationinDelhi makesitan attractive investmentchoice.

10. Table 3 - NPV & IRR of non subsidizedPCSvs 100% charger cost subsidized:
Since businessvolumesinthe initial yearswill be verylow,attractingprivateinvestmentsforPCS
networkcreationcanprove to be a challenge inthe country;unlesscapex costispartlyorfully
subsidized.
Also,itwill be difficulttobuildEV chargingnetworkinIndiaasa standalone business.Innovative
businessmodelstoincentivizethe publiccharginginfrastructure (PCI) providersandgovernmentwill
be required.

11. Financial target, Product Mix & Expansion Plan for Next 5 Years
Hybrid and plug-in electric vehicles can help improve fuel economy, lower fuel costs, and reduce
emissions.
1. Energy Security- EVscommonlyutilizelessfuel thancomparable ordinaryvehicles,sincethey
utilize electric-drive advancesto support vehicle effectiveness through regenerative slowing
down—recovering energy in any case lost during slowing down. They alluded to as battery
electricvehicles,are bothfitforbeingcontrolledexclusivelybypower,whichiscreatedinthe
United States from gaseous petrol,coal, thermal power,wind energy,hydropower,and sun
based energy.
2. Costs - EVs typically achieve better fuel economy and have lower fuel costs than similar
conventionalvehicles.EVscanreduce fuelcostsdramaticallybecauseof the highefficiencyof
electric-drive components. Because PHEVs and EVs rely in whole or part on electric power,
theirfuel economyis measureddifferentlythanthatof conventionalvehicles.Milespergallon
of gasoline equivalent(MPGe) andkilowatt-hours(kWh) per100 milesare common metrics.
Depending on how they are driven, today's light-duty EVs (or PHEVs in electric mode) can
exceed 130 MPGe and can drive 100 miles consuming only 25–40 kWh.
3. Infra Availability - EVs have the benefit of flexible charging. Since the electric grid is in close
proximitytomost locationswhere people park,theycan charge overnightat a residence,as
well as at a multi-unit dwelling, workplace, or public charging station when available. They
also have added flexibility because they can also refuel with gasoline or diesel (or possibly
other fuels in the future) when necessary.
4. Emission – Theyhave significantemissionsbenefitsoverconventional vehicles.EV emissions
benefits vary by vehicle model and type of hybrid power system. EVs produce zero tailpipe
emissions, or produce no tailpipe emissions when in all-electric mode.
5. Batteries - The advanced batteries in plug-inelectric vehicles are designed for extendedlife
but will wear out eventually. Several manufacturers of plug-in vehicles are offering 8-
year/100,000-mile battery warranties.
COVID-19 has presented India with an unprecedented economic, humanitarian, and healthcare
challenge.The lockdownmeasureshavecontainedthe spreadof the Covidyetclaimedatremendous
financial cost, with business analysts currently foreseeing that the nation's GDP will recoil between
1.5 percent and 5 percent during the 2021 monetary year.
On the business side, India’s automotive and mobility sectors are among the hardest hit. Following
the example found in nations where COVID-19 spread prior, lockdown measures and different
limitationshave restrictedtravel and leftnumerousshoppersincapable orreluctantto buy vehicles.
Adding to the pain, the coronavirus took hold just as automotive OEMs and mobility players were
attempting to recover from a precipitous drop in annual sales in 2019.
When lookingbeyondthe immediate challenges,however,the picture isnot as bleak.Overthe long
term, as COVID-19 is controlled and India enters the next normal, we expect that automotive and
mobility players will return to their former strength. Although many challenges lie ahead, the
coronaviruscouldacceleratesomebeneficialtrends.Forinstance,electrificationwillincrease inselect
segments, such as two-wheel (2W) and three-wheel (3W) vehicles,and shared mobility could also
increase becauseof thegrowthofvarioususe cases,suchaslast-mile delivery,ridehailing,andrentals.
As they prepare for the future, a solid understanding of the changed landscape can help OEMs and
other stakeholders update their strategies for the Indian market.

12. Other developments that could help the small format e-mobility market include the following:
 Incentives from India’s central and state governments to encourage EVs: The Faster
Adoption and Manufacturing of Hybrid and EV (FAME) program will provide consumersand
domestic companies with various incentives. For instance, in phase two of FAME, the
government announced an outlay of $1.4 billion through 2022.
 Lower battery pack prices:AccordingtoMcKinsey’sbatterycostmodel,the price of abattery
pack in India could fall to $110 to $120 by 2030, making EVs much more affordable. A
combination of scale, technology, and market maturity will drive this decline.
 Increasedconsumer readiness:Acrossuse cases,more shoppersshouldchoose EVsoverICE
vehicles. As per McKinsey's 2019 Autonomous, Connectivity, Electrification, and Smart
portability (ACES) study, one significant barrier is the apparent securityof EVs. This was the
top worry after TCO and the accessibilityof charging framework. As more EVs hit the road,
and as purchasersbecome more acquaintedwiththem, their solace level might increment.
Open-architecture platforms that are both modular and scalable will allow OEMs to offer
differentiated products at competitive prices for B2B and retail while enabling significant capital-
expenditure synergies. While the platforms’ open architecture will make them suitable for many
differentvehicles,OEMscan still offercustomizedfeaturesforsmall-formatEVsbybuildingin-house
capabilities in various areas, such as battery-management systems and power-train integration
Our 5-year plan will be to:
 Creating disruptive front-end sales channels
 Developing innovative business models
 Reimagining the partnership landscape

13. Charging facilities
In a bid to help ramp up the charging infrastructure in the country and to help ease customers’
range anxiety,we will tryto equipourselveswitha50kW DC fast charger. Our customerswill be
able to avail complementary charging also. An app will also be provided.
Waiting period
Talkingaboutthe waitingperiodforthe cars, Dhillonsaid,“We alreadyhave a certainnumberof
cars brought into the country. So they will be available immediately if a customer wants to buy.
But if somebody wants to configure the cars, it takes about four to six months depending upon
what kind of configuration and some integration because of the semiconductors.”
Source: McKinsey
The vision

14. We’ll aim to attain 50,000 production capacity in the next one year. We’ll also set up experience
centres,partnerwith dealerships,makethe scootersavailableonline(Amazon&Flipkart) withcollege
students and IT sector office goers as its target audience.
Our 2-wheelerwill be followedbythe launchof a low-scale scootermodel fortier2 and 3 citieswith
a lesselaborate listof features.We can alsoexplore the ideaof introducingamid-range electricbike
and plans to indulge in long-range electric car sales eventually.
We’ve a very realistic vision of vehicle electrification and low-cost but low-speed rebadged Chinese
electric scooters, instead of benefitting EV adoption, are in fact harming consumer perspective
towards electric scooters as being low on quality and convenience. We feel simple Energy products
will be a marriage between a good price and features.