2W EV case study

1. A RAMKUMAR – 2001002
ANOOP KUMAR DIXIT – 2004005
AR Consultants
DI Case Avenger Event

2. 2
Copyright © 2021 Deloitte Development LLC. All rights reserved. The Case Avenger Event
EV-2W market is expected to grow 60x in next 10 years & demand drivers will be crucial to become market leader
Indian Electric Two-Wheeler(EV-2W) industry outlook & demand drivers
Market of EV-2W in India
• EV market in India is blooming
• EVs will disrupt ICE market
• Key market players – EV-2W
 Okinawa (36%)
 Hero Electric (27%)
 Ather (10%)
 Ampere (9%)
 Revolt (4%)
• Emerging new player – DEF Inc.
 >1lakh EV-2W pre-booked
• ABC Inc. EV-2W business
 Market Share – 3%
 No. of dealers – 5
 No. of models - 2
• Sales projection of EV-2W
• Key market players
0.15 million EVs
(2020)
3 million EVs
(2026)
9 million EVs
(2030)
Expected CAGR of
EV-2W is 80%
(2016 -26)
 Rise of EVs has started & will be
growing exponentially
Demand Drivers
• India – World’s largest 2W market
• Consumer driven
 Battery life
 Charging availability
 Safety & Performance
 Price sensitive market
 Test-drives
 Information of charging points
• Market Driven
 Government policies & subsidies
 Growing environmental concern
 Lower Total Cost of Ownership(TCO)
• Government initiative
 FAME-II - Govt. flagship policy
 GST reduced to 5% for EVs
 Tax exemptions & interest free loans
• Mobility in India
Half of the population in India uses non-motorized
mode of transport (Walking & Cycle)
50%
21%
5%
20%
4%
Non-motorised
transport
2W
4W
Public transport
Taxi services
 India being World’s largest 2W market provides huge opportunity for EV automakers to
take benefit by leveraging demand drivers
 Half of the population in India is using non-motorised mode of transport, who can be
lured into EV segment by strategic marketing

3. 3
Copyright © 2021 Deloitte Development LLC. All rights reserved. The Case Avenger Event
To grow from market share in EV-2W from 3% to 36% ABC Inc. must do market penetration & market development
Strategy for ABC Inc. to become market leader by 2026 in EV-2W leveraging existing capabilities
• Market Development
 Existing Product – EV-2W
 New Market – B2B – Market Development
 Government directive - more than 40% of
fleet in Ola, Uber & other shared mobility
providers to be electrified
 Key segments to look for:
 Self-drive 2W rental – e.g.Vogo
 Bike taxi – e.g. Rapido
 These two segments will face shortage of 2Ws
 Firms under these can be new B2B customers
• Capabilities of ABC to be leveraged
 Existing large customer base
 Pan India dealer network(4000+) – DEF Inc.
here as a start-up can’t compete ABC Inc. to
reach customers & provide after sales services
 Well established brand name
 Diversified business portfolio
 Automobile components
 Tire
Both these directly relate to EV production line,
since majority of the difference is in engine
Market Penetration
 In scope
Product Development
 Out of scope
Diversification
 Out of scope
Market Development
 In scope
PRODUCT
MARKET
Existing New
Existing
New
Scope of growth
 Existing Product – EV-2W
 Existing Market – B2C – Market Penetration
 New Market – B2B – Market Development
No. of EV-2W sold
in lakhs
0.045 0.43 0.97 2.18 4.91 11.07
Year 2021 2022 2023 2024 2025 2026
0.045 0.43 0.97
2.18
4.91
11.07
0
5
10
15
2020 2022 2024 2026
NO.
OF
EV-2W
SOLD
YEAR
2021 2026
•Market Share – 3%
•Volume sold – 4,500
•Target share >36%
•Target volume– 11 Lakh
Demand
•Convert existing ICE users to EVs by exchange offer (ABCs old ICE 2Ws (2015-
19) = 14 million – huge scope for conversion)
•Demo test drives
•EV-ICE hybrid model
•Referral schemes
•Differentiation:
 Battery life and charging availability
 Information on charging point location
 Enhanced Safety, performance & reliability
 Accessible service centers
Growth strategy for ABC Inc
• Target – ABC EV-2W segment
• Growth to be attained by:
 Market Penetration
 Market Development
• Market Penetration
 Main goal – To increase revenue
 For revenue increase, either price or volume sold to be increased
 Price increase is not feasible in price sensitive & competitive market
 For volume increase, demand & supply to be exponentially raised
(see graph)
Exponential rise of EV-2W sales by matching demand-supply
ABC Inc. can become the market leader of EV-2W by 2026 following market penetration & development & leveraging its current capabilities
Supply
•Cannibalization of ICE production lines to EV
•Outsourcing for components not feasible to produce in-house

4. 4
Copyright © 2021 Deloitte Development LLC. All rights reserved. The Case Avenger Event
EV will abrupt ICE market & establish its own ecosystem opening a wide array of market opportunities
Understanding the EV ecosystem & exploring new business opportunities in it
EV disruption will bring upon the following
major areas as part of new ecosystem:
 Renewable power sources
 Smart grid
 Commercial charging station
 Home charging stations
 Financing solutions
 Better batteries
 Lightweight materials
 Battery management & analytics
 Mobility services
ABC Inc. can enter any one or more of these
new markets & shine. The approach is two-fold:
1. Select the market to enter by industry
attractiveness vs ABCs business strength
2. Select geographies/region in India to enter
where EV ecosystem has bloomed well
ABC Inc must act as fast mover in the newly created EV ecosystem entering into lightweight material, financing & battery segments leveraging their expertise & existing capabilities
EV Ecosystem
Renewable power
sources
Smart grid
Commercial charging
station
Home charging stations
Financing solutions
Better batteries
Lightweight materials
Battery management &
analytics
Mobility services
• Suggest ABC Inc. to enter:
 Lightweight materials market
EVs demand lightweight material for body construction
ABCs expertise in production processes & good R&D team
Financing solutions
More people from BPL will be attracted towards EV requiring
financial support
ABC can follow similar business models like Bajaj Finserve
Better batteries
Since battery will be the new oil, entering this market with
investment on new technology & its production will be
promising
• Suggest ABC Inc. to enter well established EV ecosystem states
of Uttar Pradesh, Tamilnadu, Kerala & Uttarakhand
Su
Smart grid
Better batteries Lightweight
materials
Home charging
stations
Battery
management &
analytics
Financing
solutions
Renewable
Power Sources
Commercial
charging stations
Mobility Services
INDUSTRY
ATTRACTIVENESS
ABCs BUSINESS STRENGTH
Policy
focus AP BH DL KA KL MH UK UP TN TG
Demand
Supply
R&D
Charging
ecosystem
Technology
EV ecosystem penetration in India

5. 5
Copyright © 2021 Deloitte Development LLC. All rights reserved. The Case Avenger Event
Adopting Integrated Business Services (IBS) for support functions & cost improvement measures through digital approaches
Enhancing efficiency of operation enabling functions and operations cost improvement measures
Core functions, operations enabling functions & Manufacturing cost break up of Automobile company
• Global integrated business framework
Geographical
scope
Local/siloed Global
Functional scope One function Multi function
Sourcing
In-house and
outsourcing not
aligned
Managed services
blending captive &
outsourcing solution
People
development
Specific to centre
and/ or function
IBS competency
model & training
curriculum
Location
Separate function
centres
Co-location into
multi-functional
centres
Procurement In function Global procurement
with utilizing
economies of scale
Marketing Local marketing Uniform brand
names; standardized
advertising messages;
coordinated product
launches; and
harmonious sales
campaigns
Manufacturing cost breakup of
Automobile company
Adoption of RPA to reduce operating cost and increase efficiency
Five approaches and capabilities to reduce the operating cost
Cost improvement measures

6. Thank You

7. 7
Copyright © 2021 Deloitte Development LLC. All rights reserved. The Case Avenger Event
• CPC India report “The India Electric Vehicle Opportunity: Market Entry Toolkit” March 2021
• https://www.ibef.org/industry/automobiles-presentation
• Ola Mobility Institute. 2018. https://olawebcdn.com/ola-institute/ease-of-moving.pdf
• McKinsey on Digital Services Introducing the next-generation operating model Jan 2017
• International journal of research culture society on Analysis and business strategy for Electric vehicles (EV)
• https://www.kearney.in/article/?/a/electric-mobility-2-0-tracking-the-next-wave-in-india
• ABC Inc. will invest mostly in Electric Vehicle 2 Wheeler segment
• ABC Inc. will become market leader by acquiring more than 36% market share in Electric Vehicle 2 Wheeler segment
• ICE users will return their 2W and acquire Electric Vehicle at the standard rate.
• Product development and diversification is not considered in our project scope.
• ABC Inc. will capture EV 2W market exponentially.
Assumptions
Appendix