This deck was first presented on 05/01/2017 at the Tepper School of Business's - Carnegie Mellon University's Tech Strategy Class. Credits: Jason Xing, Jianfeng Lu, Jensen Loke, Erica Yao, Tewang Chen (Henry) and Andy Yu.
3. Lit Motors
Mission
• Making the innovative vehicles which have the efficiency of a bicycle and motorcycle but
all the amenities of a car.
Major Products
• Kubo(on hold): A cargo scooter design dubbed the “pick-up truck of the developing world”
• C-1(pre-orders are full): An enclosed two-wheeled vehicle self-balanced by two single-
gimbal control moment gyroscopes, to be powered by lithium iron phosphate batteries
Story
2013 2014 2015 2016
Announced
Prototype
Ready to production and
accepted pre-order
Focused on safety
design
Refined the design
and updated features
4. Problems That Lit Motors Targets
Air Pollution
Nearly one half of all
Americans—an estimated 150
million—live in areas that don’t
meet federal air quality
standards.
City Congestion
By 2030, there’s going to be 41
megacities, the majority in the
developing world.
Safety
In 2015, the motor vehicle deaths
in U.S. is 35,092;
Comparing with 2014, the
number of fatalities increased
10.5%.
Source:
https://en.wikipedia.org/wiki/List_of_motor_vehicle_deaths_in_U.S._by_year
http://www.businessinsider.com/most-congested-cities-tomtom-traffic-index-2017-2?r=UK&IR=T
http://www.ucsusa.org/clean-vehicles/vehicles-air-pollution-and-human-health#.WQX_ydLytPY
5. C-1: The Future of Transportation
Target
Customers
C-1
Techie, early adopter with
high disposable income
Supreme performance,
sleek outlook, and
electricity-driven
Competitive-based
pricing, high-end
Online direct-sell model
Perform
ance
Price
Promotion
Low Price High Price
High
Quality
Low
Quality
10. C-1 is the future of transportation
C-1
Navigate Through Traffic
Easy to Park
One fourth of the size of a regular car
High Performance
100+ MPH top speed
0-60 MPH in 6 seconds
Environmental Friendly
Safety
Car Experience
11. The Market Size For C-1 Is Huge
Total motorcycle units sold in 2018555,129
366,546
36,655
Motorcycle sold units within 20k-
29k price range
By capturing 10% of the market, C-1
could have 36,655 units sales
Revenue= 36655* $2,4000=$880 M
https://www.statista.com/statistics/183635/number-of-households-in-the-us/
https://www.statista.com/statistics/203183/percentage-distribution-of-household-income-in-the-us/
https://www.statista.com/statistics/252261/us-motorcycle-salesin-units/
Source:
12. Lit Motors - Vision for the Future
Lit Motors to become the de-facto standard of personal mobility transport
in the next 5-10 years.
13. Strategic Roadmap - How we get there
2017
2018
2020
2019
2021
• Focus on Design phases for scalable design and production optimization
• Increase pace of hiring to approximate 100 people
Automotive / production designers and engineers
Sales and product / customer support teams
• launch the model C-1 at 1,100 units slated to bring in 25M worth of revenues
• Reinvest 25M into production of the C-2
• Expand hiring to other geographical markets
• To commence with site development at new production facilities
• Form strategic partnerships and reinvest in supporting infra for EVs in supported cities
• Release the C-2 with better range, and target production >20,000 units at a lower price
point for mass affordability and integration
Jianfeng
John Webster is a software engineer in a tech startup located in downtown San Francisco. He lives in Milpitas and commutes to the city for work mostly by public transportation. It usually takes him 90 to 120 minutes from home to office, depends on how early he leaves home. He likes driving which gives him more flexibility but doesn’t do it for work because He doesn’t want to drive through the traffic jam on the highway and spend endless time looking for parking spot near office.
Jianfeng
Jianfeng
Jianfeng
Jianfeng
JensenTotal motorcycle units sold in 2015 in US: 500,695
200,000+ income households in US(in 2016): 125.82M* 6.1%=7.675M
100,000~200,000 income households in US (in 2016): 125.82M*20.3%=25.54M
Affluence households to buy motorcycle price range from 20k to 29k
6.675M*1.3% + 25.54M*1%=342,175
Assume Lit motor can get 10% market share from this product segment, total annual revenue we expect to gain from the first model is 342,175*10%*$2,4000=$821,220,000
Assume Lit motor ship the first model in 2018, annual growth of motorcycle market in US from 2016 to 2018 is 3.5%, the revenue in the first year : $821,220*(1+3.5%)^2=$879,711,394
Jensen
We ask ourselves, how we imagine the future of transportation and how lit motors will be a part in it.
The 10 year vision of the company is to create large scale and efficient personal mobility vehicles and we are rightfully ambitious.
In the left most corner, is the C-1, our primary launch vehicle. We put our CEO’s picture next up, and it is only because we also realize that a large part of our market exists not just in the US, but stretches far beyond to asia and bustling cities alike. Highly integrated EVs can completely integrate with solar infrastructure and serve as a key mobility device even in rural regions. Being under-developed, they have a lower resistance to innovation with a rapid pace of adoption and would be potential market if we can bring low-cost, effective and safe personal evs to these markets.
The images on the right looks straight out of robocop, but are concept arts that even the team feels like it’s a future not too far away. Autonomous vehicles are about to alter the landscape of the automobile industry with its pulse right from CMU’s campus. Having police scooters and small transport vehicles to perform autonomous delivery shouldn’t be that far fetched.
The last picture on the right is purely to show you how competitors like the BMW motard NEXT 100, the bmw vision is very close to ours. The only difference now is that you can invest in us and not them.
So how will we enact this vision?
We have a short term plan that encapsulates the essence of our vision.
(elaborate from slide)
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