This document is an industry project report submitted by Pranav V. Dorle for their Master's degree program. The report examines trends in electric vehicles with respect to cab aggregators and provides a cost-benefit analysis. It includes an introduction to electric vehicles and their history. It also discusses the electric vehicle industry in India and provides an overview of the automobile industry in India. The report was conducted under the guidance of Prof. Sandeep Nemlekar for Chetana's R.K. Institute of Management and Research.

1. Chetana’s R. K. Institute of Management & Research
Bandra (East), Mumbai
Electric Auto-Vehicle Trends With Respect To Cab
Aggregators Along With Cost-Benefit Analysis
(Industry Oriented Dissertation Project)
Submitted in partial fulfillment of the requirements for
Master of Management Studies
(University of Mumbai)
Academic Year: 2016-2017
Submitted By
PRANAV V. DORLE
Roll No. 75
MMS-Batch: 2015-17

2. Declaration
I hereby declare that this project report titled “Automobile Industry Trends With Respect To
Cab Aggregators Along With Cost-Benefit Analysis”, submitted in partial fulfillment of the
requirement of Master of Management Studies to Chetana’s R.K. Institute of Management and
Research, is my original work and not submitted for award of any degree or diploma fellowship
or for similar title or prize. References of work and related sources of information have been duly
acknowledged in the report.
The project has been carried out under the guidance of Prof. Sandeep Nemlekar.
I further declare that I have no objection and grant the rights to Chetana’s R.K. Institute of
Management and Research to publish any chapter/project or use it for future reference if they
deem fit.
Date : 25th
March, 2017
Name : Pranav V. Dorle
Class : MMS Batch 2015-17
Roll No. : MMS B - 75
Signature :

3. ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task would be
incomplete without the mention of the people, who made it possible, whose constant guidance
and encouragement aided me in the completion of my project.
I consider it my privilege to express voice of gratitude and respect to all those who guided me
and inspired me in the completion of this project.
I would like to express my thanks to my Institute mentor Prof. Sandeep Nemlekar for his
precious guidance and effectually care which happens to be the psyche of this thesis report.
I would also like to express my heartfelt gratitude to my Industry mentor Mr. Ashok
Asawale, from Mahindra and Mahindra for his continuous encouragement and valuable
guidance throughout my internship tenure.
I conclude that my association with Mahindra and Mahindra as a winter intern has been
extremely stimulating, beneficial and a truly enriching experience.
Date: 25th
March, 2017
Place: Mumbai PRANAV DORLE

4. TABLE OF CONTENTS
Page No.
EXECUTIVE SUMMARY 1
CHAPTER 1 INTRODUCTION
1.1 Introduction to Electric Vehicles 2
1.2 Introduction to the Automobile Industry 7
1.3 Introduction to Mahindra and Mahindra 12
1.4 Introduction to the Project 17
CHAPTER 2 OBJECTIVES
2.1 Objectives of the Project 19
2.2 Detailed Description of the Task 20
2.3 Related Literature Review 36
CHAPTER 3
METHODOLOGY AND ANALYSIS 42
CHAPTER 4
CONCLUSIONS & RECOMMENDATIONS
4.1 Conclusions 52
4.2 Recommendations 52
ANNEXURES
A-1 Bibliography 53
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5. Executive Summary
Over the past few years, India’s cities have been witnessing an increasing trend in road
traffics. It is mainly because of the increase in motorization on the roads of Indian cities.
This results into the issues like deteriorating the air quality and noise pollution. To get out of
this gridlock there have been calls to promote public transport. It is in this context that
electric vehicles can play a positive role, as there are several benefits associated with the
shift from conventional petrol or diesel vehicles to electric vehicles. In spite of many
positive benefits related to electric vehicle technology, certain challenges are also there like
currently Electric Vehicle is associated with significant capital costs, certain safety
parameters like a concern of a fire hazard. The use of solar energy converted in to electrical
energy can be more environmental friendly. Using solar energy as an electrical energy to
charge the vehicle batteries will reduce the cost on fuel.
With energy conservation and environmental concern, world should look towards the
electric vehicles (EV) and hybrid electric vehicles (HEV) in future. Also several
optimization methodologies have to be followed by several manufacturers designing fuel
efficient environmental friendly vehicles not leaving these reliable internal combustion
engines. As the sales of internal combustion engine vehicles are growing at a higher rate,
“By 2020 annual demand for cars and light trucks will reach 103 million units. Of
these, only 3 million will be either all-electric vehicles or plug-in hybrids. A further 6
million will be hybrid vehicles with an electric drive in addition to their internal-
combustion engine. In other words, a good 100 million new vehicles powered by
internal-combustion engines will be sold in 2020”. But as the natural resources like petrol
and diesel are consumed day by day, by 2020 it will have limited supply worldwide.
Any vehicle with electric propulsion can be branded as electric vehicle. As electric motors
are the major element in providing vehicle propulsion, depending on the energy source
utilized in driving this electric motor, the classification involves, battery operated electric
vehicles (BEV) and fuel cell operated electric vehicles (FLEV).
The report includes the information on the solar energy which can be used as an electrical
energy to charge the batteries of electric vehicles.
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6. Chapter 1
Introduction
1.1 Electric Vehicles
In every home there are lots of electric powered tools, some are used inside and other
outside. We can toast our bread, dry our hair, vacuum clean and so on. But there is one thing
that is not powered with electricity. We start the day of using this product, the workday ends
often by using it, we use it after work and some people use it in work, on weekends and so
on. This product can be a symbol of personality, a symbol of power status, a sign of success
or sign of taste. I think it is now obvious that I am talking about the car. Why is the typical
home car not powered with electricity?
In this project my main focus is going to be the electric car, how the technology has evolved
and what the prospects are. In my opinion, this technique can and should be used more. I
think it is time to consider it necessary to produce varied types of electric cars. The reason is
simple, we need to find substitute for oil and gasoline powered cars and we need to lower
the pollution from vehicles. I think the best solution is electric and I am positive that is a big
part of our future.
Between 1832 and 1839, Robert Anderson of Scotland invented the first crude electric
carriage. A small-scale electric car was designed by Professor Stratingh of Groningen,
Holland, and built by his assistant Christopher Becker in 1835. Practical and more
successful electric road vehicles were invented by both American Thomas Davenport and
Scotsmen Robert Davidson around 1842. Both inventors were the first to use non-
rechargeable electric cells. Frenchmen Gaston Plante invented a better storage battery in
1865 and his fellow countrymen Camille Faure improved the storage battery in 1881. This
improved-capacity storage battery paved the way for electric vehicles to flourish.
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7. By the turn of the century, America had good supply of cars, they were now available in
steam, electric, or gasoline versions. Electric vehicles had many advantages over their
competitors in the early 1900s. They did not have the vibration, smell, and noise associated
with gasoline cars. Electric vehicles did not require gear changes but changing gears on
gasoline cars was the most difficult part of driving. Steam powered cars also had no gear
shifting but they suffered from long start-up times on cold mornings. The steam cars also
had less range before needing water than an electric's range on a single charge.
Despite all these benefits the electric vehicles had, it somehow disappeared by 1935. The
years following until the 1960s were dead years for electric vehicle development and for
using as personal transportation. The 1960s and 1970s saw a need for alternative fueled
vehicles to reduce the problems of exhaust emissions from internal combustion engines and
to reduce the dependency on imported foreign crude oil. Many attempts to produce practical
electric vehicles occurred during the years from 1960 to the present.
In the years 1973 to 1983 two companies were leaders in electric car production, Sebring
Vanguard and Elcar Corporation. During 1998 were available Toyota RAV4 sport utility,
the Honda EV Plus sedan, and the Chrysler EPIC minivan. These three vehicles were all
equipped with advanced nickel metal hydride battery packs.
Now in 2017 there are growing signs that the electric car, once on the road to extinction,
may jolt back to life. Several small, independent automakers are juicing up electric cars as
an environmental statement amid renewed concern about global warming and dependence
on imported oil.
It states that the first electric car came on the street during the years 1832-1839. The cars
were sought working well for the consumer’s requirements in those days and every car sold
out. Therefore, might think that this development would continue and would be advanced in
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8. 200 years. But on the other hand the development and production of these cars stopped and
petrol
cars became the only produced cars and electric cars were no longer gettable. What was the
reason behind this decision and who took it. Who benefitted from this action, the oil
barons ?
The movie "Who Killed the Electric Car?" is a documentary film that came out 2006. It is
about the creation, limited commercialization and subsequent destruction of the battery
electric vehicle. The film explores the roles of automobile manufactures, the oil industry, the
US government, batteries, and consumers in limiting the development and adoption of this
technology. In my opinion it is obvious that someone wanted to get rid of the electric cars
and profited from this action. The only supply of cars use oil and the oil barons get all of the
profit. Last 100 years the world's habitant lived with the illusion that the electric technology
was not sufficiently advanced to work well enough to drive cars. The statement has been
disproved with cars that able to perform very similar to the petrol car and some even better.
An electric car is an alternative-design automobile that uses an electric motor to power the
car, with the electricity being provided by a battery. While a conventional car does have a
lead-acid battery as part of its standard equipment, this battery is for operating the starter
and not powering the vehicle.
Technology
Electric cars have a motor just like conventional, internal combustion engine cars. The
difference is that the power supply is derived from battery-stored electricity rather than the
mechanical power derived from burning gasoline. The batteries used in electric cars vary in
design, and include the lead-acid type familiar to all conventional car owners, lithium ion,
similar to those used in laptops and mobile phones, but once again much larger, molten salt,
zinc-air, and various nickel-based designs.
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9. In an electric vehicle the traditional gasoline or diesel engine and fuel tank is replaced with
an electric motor, a battery pack and controllers. The vehicle also has a controller that
powers the electric motor that uses rechargeable batteries as its energy source. The motor
itself can be either AC or DC. The main advantage to electric vehicles is that the motor and
battery configuration allows the vehicle to run more fuel-efficiently.
DC motor installations tend to be easier and less expensive to build. DC motors also have an
overdrive feature which means that for a short period of time the motor will accept more
energy and deliver more horsepower as a result. This feature is useful in a vehicle because it
can help during acceleration. The motor, however, cannot be run in overdrive too often
because the motor will overheat and could malfunction. AC motor installations are more
expensive than DC installations. They usually use a three phase AC motor that allows
regenerative braking. This means that during braking the motor acts in reverse as a generator
and delivers power back to the batteries. 15% of the energy used for acceleration can be
recovered using regenerative braking. This amount is not enough to fully recharge the
battery pack, but it will extend the range of the vehicle.
Electric Vehicle Trend in India
The Electric Vehicle industry in India is far behind, with less than 1per cent of the total
vehicle sales. Currently, Indian roads are dominated by conventional vehicles (ICE) and
have approximately 0.4 million electric two wheelers and a few thousand electric cars only.
The Indian EV industry has been on the back seat due to various challenges that are similar
to the global EV industry. High cost of batteries and cars has been a major obstacle to the
widespread consumer adoption of EVs in India. Lack of Inexpensive and robust charging
infrastructure is another parameter which has hindered its growth.
A typical electric car in India costs around INR0.5 to 0.6 million which is approximately 2.5
times higher than an entry level fuel efficient conventional car. Also the battery life of the
EV is approximately four to five years and the replacement cost is around INR0.2 to 0.3
9

10. million, which further adds to the cost of ownership. Besides price, another barrier that has
prevented the widespread adoption of EVs is range anxiety.
We believe that more than 100 years after the invention of the internal combustion engine,
incumbent automobile manufacturers are at a crossroads and face significant industry-wide
challenges. The reliance on the gasoline-powered internal combustion engine as the
principal automobile power train technology has raised environmental concerns, created
dependence among industrialized and developing nations on oil largely imported from
foreign nations and exposed consumers to volatile fuel prices. In addition, we believe the
legacy investments made by incumbent automobile manufacturers in manufacturing and
technology related to the internal combustion engine have to date inhibited rapid innovation
in alternative fuel power train technologies. We believe these challenges offer an historic
opportunity for companies with
innovative electric power train technologies and that are unencumbered with legacy
investments in the internal combustion engine to lead the next technological era of the
automotive industry.
and international vehicle manufacturers are expected to launch more than 25 EV models by
2021.
This new move by the Government can be described as the biggest push to encourage sales
of electric and hybrid vehicles in India. Under a unique and innovative scheme named as
FAME, Government will provide incentives up to Rs 1.38 Lakh for every electric car sold.
Union Minister of Heavy Industries and Public Enterprises, Anant Geete, launched Faster
Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) aiming at
promoting and encouraging sale of electric and hybrid vehicles.
The launch program of this scheme was organized by The Department of Heavy Industry
(DHI) under the Government of India, along with the Society of Indian Automobile
Manufacturers (SIAM). It was announced that the Government aims to bring 6-7 million
10

11. (60-70 lakh) electric and hybrid vehicles on road by 2020. For the next 5 years, the ministry
has estimated that Rs 14,000 crore would be required to successfully implement the scheme.
1.2 Introduction to the Automobile Industry
The automotive Industry in India is now working in terms of the dynamics of an open
market. Many joint ventures have been set up in India with foreign collaboration. India
ranks just behind China with the world’s second largest population at over 1 billion people.
Less than 1 percent of the population currently owns automobiles, which is a much smaller
proportion than the rest of the Southeast Asia region. India also has one of the fastest
growing economies, and many U.S. companies view India as a potentially lucrative market.
It is expected that the automotive industry will play an important role in helping the
economy to continue this growth. This section gives an overview of Indian Automobile
Industry.
Introduction
Indian Automotive Industry growth decades started in the 1970s. Between 1970 and 1984
cars were considered a luxury product; manufacturing was licensed, expansion was
restricted; there were Quantitative Restriction (QR) on imports and tariff structure designed
to restrict the market but starting in 2000, several landmark policy changes like QR and
100% FDI through automotive route were introduced. In 2003, Core group on Automotive
R&D (C.A.R) was set up to identify priority areas for automotive R&D in India. Indian
Auto Industry is 2nd in Two Wheelers, 3rd in Small Cars and 5th in Commercial Vehicles
among the top 10 in World.
India is a global hub of automobile industry having:-
• 15 Manufacturers of passenger cars and multi-utility vehicles
• 9 Manufacturers of commercial vehicles
• 16 Manufacturers of 2/3 wheelers
• 14 Manufacturers tractors
11

12. • 5 Manufacturers of engines
The evolution of the automotive component industry predictably followed the evolution of
the auto industry itself. With the startup of local production of cars, trucks, and two-
wheelers in the
1950s, many of the associated component manufacturers (mainly from Europe) started
operations in India. Over a period of time, many of the major manufacturers had established
plants for manufacture or assembly of parts. These included companies like Bosch (fuel
injection systems and spark plugs) and Mahle (pistons) from Germany; Lucas (auto
electricals), Girling (brakes), and Lockheed (clutches) from the United Kingdom; and
Champion (spark plugs), Armstrong (shock absorbers), and Union Carbide-Exide (batteries)
from the United States. From the Indian perspective, these units were primarily intended to
aid import substitution. In theprocess, there was gradual transfer of technology from the
parent company. The domestic two-wheeler industry has grown steadily at a CAGR of 8.5
per cent from 4.2 million in 2001 to 7.43 million in 2009. The motorcycle segment
continues to dominate the market. Entry-level bikes (engine power below 125cc and price in
the range of US$ 850–1,000) account for around 80 per cent of sales. The cost of ownership
and economics of operations are key purchase criteria. The premium-bike segment (engine
power above 150cc and price in the range of US$ 1,200–2,000) is growing at a faster pace
than entry-level vehicles; this is an indication of the increasing affluence of customers.
Recent trends indicate that 100cc bikes are being preferred over 125cc bikes by the market.
The following figure shows the Segment Wise Market Share.
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13. 72%
21%
3% 2% 1% 1%
0%
Market Share (2020)
Two and three wheelers Passenger Vehicle SCV's
Tractors LCV's M & HCV
Const. Equip.
Various types of vehicles are available like Cars, Jeeps, Buses, Trucks, LCVs, Tractors and 2-Wheelers
which are produced by India. The following table shows the Vehicle Production by Type in India.
Year Car & Jeep
Buses, Trucks
& LCV’s
Tractors 2-wheelers
1971 49.3 % 41.9 % 17.1 % 121.1 %
1975 31.3 % 42.9 % 32.4 % 207.7 %
1979 41.5 % 59.7 % 60.2 % 306.9 %
1983 66.8 % 87.3 % 71.5 % 759.2 %
Rising GDP per capita (US$) is shown below
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14. Automobile Companies in India
Hero Honda: Largest two-wheeler manufacturer in the world.
Bajaj Auto: Second-largest two-wheeler manufacturer and largest three-wheeler manufacturer
in India.
TVS Motor: Third-largest two-wheeler manufacturer in India; has established a manufacturing
facility in Indonesia.
Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSIL):
Has recently entered the Indian market through its own subsidiary (in addition to its joint
venture Hero Honda). Suzuki Motorcycle India Pvt. Ltd. The Company started its India
operations in February 2006 through this fully-owned subsidiary.
Following are the Top Automobile Companies in India:-
14

15. • Audi
• Bajaj Auto
• BMW
• Chevrolet
• Daimler Chrysler (Mercedes)
• Fiat
• Ford
• General Motors
• Hindustan Motors
• Hero Honda Motors
• Hyundai Motors
• Mahindra & Mahindra
• Maruti Udyog
• Skoda
• Tata Motors
Forecasts for Indian Auto Industry
1. Passenger vehicle market of India will even cross Japan by selling about 5 million
vehicles by 2017-18
2. India’s passenger vehicle production projections:
a. In 2010 : 2.6 Million Vehicles
b. By 2015 : 5.1 Million Vehicles
c. By 2020 : 9.7 Million Vehicles
Various Challenges
15

16. In Indian Automotive Market, there are some challenges by virtue of which automobile
industry faces lot of problems. These challenges should be overcome and the challenges are
listed below:
• Growth in input costs
• Fuel price volatility
• Slowdown in demand
• Slowdown in USA
• Production cuts
• Growing competition
• Changing consumer preferences
• Chinese competition
• Environmental issues
• Low R&D orientation
• Infrastructure constraints
1.3 Introduction to the Company: Mahindra & Mahindra
Sectors in which the organization operates
Mahindra’s story was cast and hewn in India’s steel industry in 1945, and today, we’re a US
$17.8 billion global federation of companies. Famous for our rugged and reliable
automobiles, some also know us for our innovative IT solutions, and others for our
commitment to rural prosperity. Befitting our size, we operate in 20 key industries,
providing insightful and ingenious solutions that are global in their ramifications. Our
companies act as a federation, with an optimum balance of entrepreneurial independence
and synergy. From Mobility to Rural Prosperity and IT, from Financial Services to Clean
16

17. Energy and Business Productivity, we’re empowering enterprise everywhere. Headquartered
in Mumbai, India, we have an operational presence in over 100 countries and employ more
than 200,000 people. And though we operate across vast geographies, our governing spirit
of "Rise" binds us as one Mahindra, dictating that we empower people everywhere to not
only chart new frontiers, but to conquer them too.
We are the world’s largest tractor brand by volume, India’s largest utility vehicle
manufacturer, and several of our businesses enjoy leadership positions in the industries in
which they operate. We remain committed to investing in technology, growing our global
presence and maintaining our leadership position. We are into Auto , Farm , Financial
services , Hospitality , IT Services and pre-owned cars.
Purpose of the Organization
We’ve made humanity’s innate desire to Rise our driving purpose. We will challenge
conventional thinking and innovatively use all our resources to drive positive change in the
lives of our stakeholders and communities across the world, to enable them to Rise. Our
purpose is why we exist and why we come to work every day, infusing our lives with
meaning, and galvanizing us to deliver our promise.
1. Challenge Conventional thinking
In thought and deeds we ask for no limits and we accept none. Where people see
problems, we see opportunities .Breakthroughs, not barriers is what we want. We dare to
not only do, but dare to disturb the universe itself.
17

18. 2. Innovative use of our resources
Our first instinct is not to find the right answer , but to question the question itself. As
we relentlessly seek to break fresh ground and solve problems, alternative thinking and
the ingenious use of resources drive us forward.
3. We enable our stakeholders to rise
We work for the greater good, advancing humankind, connecting the world and reducing
its distances. Inhabiting our customers’ world indicates co-creating lasting, positive
change in their lives.
"Rise" is a call to action. To challenge the status quo. To think alternatively. To always drive
positive change. It's also Mahindra’s purpose.
Presence of Mahindra and Mahindra
Asia Pacific
With our roots firmly planted in India, we began reaching out to the farthest corners of the
Asian continent early with our automotive and farm equipment products. Today, we finance
rural prosperity; build sustainable cities; defend land, water and air; help families get
together on memorable vacations; and drive prosperity through strategic partnerships with
leading Asian and Australian companies.
Europe
18

19. Our diverse businesses are playing a key role in supporting Europe's vibrant economy. We
have recently deployed our fleet of electric cars in the region and our subsidiaries,
SsangYong Motors and Peugeot Motor Cycles, have been a part of Europe's automotive
industries for several decades. Mahindra Racing competes with Europe's best in the Moto3
and Formula E racing arenas and our IT business is at the forefront of the digital revolution.
From manufacturing a wide range of high quality parts for European companies including
Volvo, Land Rover, Daimlerand Renault, to transforming lives and landscapes in Serbia,
Turkey and Macedonia, we are helping write the next chapters in Europe’s comeback story.
Middle East & Africa
Potential - Perhaps no word can capture the essence of this region better and we are
committed to helping these markets realize their capabilities. Our Powerol diesel generator
sets are delivering reliable power supply to businesses and homes, raising economic vitality
and living standards. Mahindra tractors have replaced camels and horses in Nigeria, Mali,
Chad, Gambia, Angola, Ghana, and Morocco, helping raise agricultural efficiency and
productivity. Our vehicles and airplanes are bringing affordable mobility to people and our
operations provide employment to thousands. As the region develops, we will be there as
responsible partners, employers, and providers of essential products and services,
empowering people to Rise.
The Americas
Our association with North America dates back to 1945 when we took the iconic Willy's
jeep to India. Several decades later, Mahindra USA opened its doors in Houston, Texas,
selling tough tractors to hobby farmers. We have come a long way since then and today, our
presence spans several industries including information technology and mobility. Genze, our
electric two wheeler, is revolutionizing urban mobility in the United States of America and
our IT business is
19

20. a key service provider to many companies including Exxon Mobil, Shell, Motorola, Nike,
LSI Logic and Bell Operating Co. We also supply components to and consult with
prominent American companies including Caterpillar, John Deere, General Electric and
General Motors.
Our products are driving positive change in the lives of consumers across the South
America. Take a stroll through the roads of Central and South America and you might just
witness a Mahindra Reva Electric car buzzing past you on its way to a sustainable future.
Visit a dignitary in Guyana and you might notice our Rakshak armoured vehicles standing
guard. In Chile and Brazil, our tractors tackle the tricky local topography to deliver a whole
host of farming functions and solutions and our Powerol diesel generators ensure
uninterrupted power supply in areas with unreliable electric grids. We also sell a whole
range of diesel vehicles across the continent and provide IT solutions to South America’s
rapidly globalizing economy.
Technology Driven Information
We believe Innovation will be one of the main drivers of our efforts at emerging among the
Top 50 Most Admired brands in the world by 2021. Innovation is deeply embedded in our
DNA and is fueled by growing investments in technology, encouraging a culture of
empowerment for employees to think differently and develop innovative new ideas,
products and solutions for our customers.
Core Values
Professionalism
We have always sought the best people for the job and given them the freedom and the
opportunity to grow. We will continue to do so. We will support innovation and well
reasoned risk taking, but will demand performance.
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21. Good Corporate Citizenship
As in the past, we will continue to seek long-term success, which is in alignment with the
needs of the countries we serve. We will do this without compromising on our ethical
business standards.
Customer First
We exist and prosper only because of the customer. We will respond to the changing needs
and expectations of our customers speedily, courteously, and effectively.
Quality Focus
Quality is the key to delivering value for money to our customers. We will make quality a
driving force in our work, in our products, and in our interactions with others. We will do it
‘First Time Right.’
Dignity of the Individual
We will value individual dignity, uphold the right to express disagreement, and respect the
time and effort of others. Through our actions, we will nurture fairness, trust, and
transparency.
Vision and Mission of M&M
Vision To create a fully collaborative environment in which suppliers can deliver exactly
what the company needs, when it needs it and at a competitive cost.
Mission To create India’s largest automobile and automobile-related products distribution
network by providing dealers and customers with the largest choice of unique world-class
products and services.
21

22. 1.4 Introduction to the Project
Since the project is based on electric cars, we know that solar energy plays an important role
in it. We can use solar energy to convert into electrical energy for electric cars. So I am
asked to study all the possibilities in detail step by step so that I understand what all
challenges are required in its making and how long and successful it will be in a country like
India to get it executed.
This project is mainly designed to build solar and electrical powered car. The greater
community on alternative energy and its applications, as well as to build a practical solar and
electrical powered car that could have real world applications upon further technological
advances. This project has a strong desire to innovate and use local technology and
resources. When sunlight falls on the solar panel then solar energy gets converted into
electrical energy and stored in the battery, Dynamos are employed that will convert
mechanical energy into electrical energy, regenerated energy from a dynamos stored in a
supplement batteries and controller supplies required power to the motor .Since petrol and
diesel is not required it uses solar energy which is abundant in nature. Sunlight is now-a-
days considered to be a source of energy which is implemented in various day to day
applications. Solar energy is being used to produce electricity through sunlight. With the
help of this technology we aim to make solar and electrical energy (using dynamo) powered
car. Preliminarily our objective would be to implement our idea on a remote control toy car
and afterwards with help of this prototype we can extend our future work on building an
actual car powered by the solar and electrical energy which is both cost effective and of
course environment friendly.
Now-a-days, dealers of natural resources like fuel, coal etc. are facing a hard time to keep
pace with the increasing demand. At one hand, there are more cars or motor vehicles are
dominating the transport medium, on the other hand these cars are being dominated by the
fuel. As a result, the limited resources are being quashed by the producers and dealers to
22

23. satisfy this need which is leading us to an uncertain future with having the scarcity of fuel
and minerals .This project is
mainly designed to build solar and electrical powered car that is completely eco-friendly as
it does not emit any harmful gases. The greater community is on alternative energy and its
applications, as well as to build a practical solar and electrical powered car using a dynamo
to regenerate the power that could have real world application upon further technological
advances.
This project has a strong desire to innovate and use local technology and resources. Since
petrol and diesel is not required, it uses solar energy which is abundant in nature and
similarly it regenerates the energy through dynamo and its energy efficient.
23

24. Chapter 2
Task Details
2.1 Objectives of the Project
• To understand the aggregator based model working in India
• To understand the scope of available solar energy and its estimated use for
manufacture of electric cars
• To understand the automobile trends from private vehicles to public vehicles
• To perform a cost benefit analysis for the organization to implement aggregator
model in future
• To derive at suitable conclusions and come up with valuable recommendations for
the organization
The objectives mentioned above are in alignment with the entire project. This report
focuses on performing a cost benefit analysis for the organization to implement aggregator
model in future.
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25. 2.2 Detailed Description of the task
Solar Energy to Electricity Mass Production
Solar power is attractive because it is abundant and offers a solution to fossil fuel emissions
and global climate change. Earth receives solar energy at the rate of approximately 1,73,000
TW. This enormously exceeds both the current annual global energy consumption rate of
about 15 TW, and any conceivable requirement in the future. India is both densely populated
and has high solar insulation, providing an ideal combination for solar power in India. India
is already a leader in wind power generation.
Solar power now covers more than 1% of global electricity demand. In three countries in
Europe, Italy, Germany and Greece, solar PV supplies more than 7% of electricity demand.
This is reported by Solar Power Europe (previously EPIA – European Photovoltaic Industry
Association). China is the fastest growing market. Research Company Global Data has
adjusted projected new capacity in China for 2015 upwards.
Last year 40 GW of new solar capacity was installed worldwide, compared to 38.4 GW in
2013, notes Solar Power Europe (SPE) in its Global Market Outlook 2015-2019.
Cumulative capacity is now 178 GW. In terms of generation, this is equivalent to 33 coal-
fired power stations of 1 GW, notes SPE. In Europe last year 7 GW was installed, which
was less than in 2013. The UK was the fastest growing market, contributing 2.4 GW. Europe
now installs less solar power capacity than China or Japan individually, but still more than
the US. However, Europe is still the world’s largest player with more than 88 GW installed
at the end of 2014. China is currently the fastest growing market, installing 10.6 GW in
2014, followed by Japan
25

26. with 9.7 GW and the US with just over 6.5 GW. SPE says capacity could reach 540 GW in
five years’ time in a high-growth scenario and would reach 396 GW in a “low-support” case.
How solar energy is converted into electricity?
Solar Cell - A solar cell is a semiconductor device that transforms sunlight into electricity.
Semiconductor material is placed between two electrodes. When sunshine reaches the cell,
free negatively charged electrons are discharged from the material, enabling conversion to
electricity. This is the so-called photovoltaic effect. In theory, a solar cell made from one
semiconductor material only can convert about 30 percent of the solar radiation energy it is
exposed to into electricity. Commercial cells today, depending on technology, typically have
an efficiency of 5 -12 percent for thin films and 13 – 21 percent for crystalline silicon based
cells. Efficiencies up to 25 percent have been reached by the use of laboratory processes. By
using multiple solar cells, efficiencies above 35 percent have been achieved.
Status of Solar Energy in India
India is ranked 11th
in solar power generation in the world as on Jan. 2013. Government
funded solar energy in India only accounted for about 6.4MW/yr of power as of 2005. In
2010 capacity of 25.1MW was added and 468.3MW in 2011. In 2012 the capacity increase
more than two times and become 1205 MW. During 2013 capacity added by 1114MW and
during 2014 capacity added by 313MW. In August 2015, the installed grid connected solar
power capacity is 4.22 GW. The price of solar energy has come down from Rs. 17.90 per
unit in 2010 to about Rs. 7 per unit in 2015. It is expected that with technology improvement
and market competition solar power will reach grid parity by 2017-18.
Current solar PV energy scenario in India
26

27. The Indian government is reported to have finalized the draft for the National Solar Mission,
outlining ambitious long-term plans to attain an installed solar power generation capacity of
20,000MW by the year 2020, which would be increased to 100,000MW by the year 2030
and further to 200,000MW by the year 2050. To unfold in three phases, it aims to achieve
parity with coal-based thermal power generation by 2030. In the first phase of
implementation (2009–2012), a sum of Rs. 10,130 crore would be required. The monetary
requirement would be Rs. 22,515 crore and Rs. 11,921 crore in the second (2012–2017) and
third (2017–2020) phases of implementation, respectively.
The Mission envisages an investment of Rs. 91,684 crore over the next 30 years. This will
include an interest subsidy to the tune of Rs. 7300 crore. The plan also aims to reduce the
cost of solar power generation by 2017–2020 in order to make solar power competitive with
power generated from fossil fuels. Solar PV has one of the highest capital costs of all
renewable energy sources, but it has the lowest operational cost, owing to the very low
maintenance and repair needs. For solar energy to become a widely used renewable source
of energy, it is imperative that the capital costs are reduced significantly for Solar PV.
12.28MW solar PV power generation capacity with grid connected has been installed since
30th June, 2010 plant, the approximate capital cost per MW is Rs. 17 crores. This includes
the cost of panels, the balance of systems, and the cost of Solar PV is fast changing industry,
given the pace of technological and policy changes. In India, where most regions enjoy
nearly 300 sunny days a year, is an ideal market for solar power companies. However, the
high cost of light-to-electricity conversion at Rs. 12 to Rs. 20 per kWh has acted as a
deterrent so far.
Currently, India has around 60 companies assembling and supplying solar photovoltaic
systems, nine companies manufacturing solar cells and 19 companies manufacturing
photovoltaic modules or panels, according to an Indian Semiconductor Association study.
Challenges and Constraints
27

28. 1) Land scarcity
Per capita land availability is a scarce resource in India. Dedication of land area for
exclusive installation of solar cells might have to compete with other necessities that require
land. The amount of land required for utility-scale solar power plants — currently
approximately 1 km² for every 20–60 megawatts (MW) generated could pose a strain on
India’s available land resource.
To achieve a capacity of 60 GW for utility scale projects by 2022, there would be a
requirement of about $40 billion. The government currently expects a big share of this to
come from international sources. But an international fund for solar projects in India is very
less.
The architecture more suitable for most of India would be a highly distributed, individual
rooftop power generation systems, all connected via a local grid. However, erecting such an
infrastructure which doesn’t enjoy the economies of scale possible in mass utility-scale solar
panel deployment — needs the market price of solar technology deployment to substantially
decline so that it attracts the individual and average family size household consumer.
Storage problem is also very serious. Suppose if the demand of power is not so high then the
electricity produced by the solar plant will have to be stored somewhere to supply when
demanded. This increases the cost of the project.
2) Slow progress
While the world has progressed substantially in production of basic silicon mono-crystalline
photovoltaic cells, India has fallen short to achieve the worldwide momentum. India is now
in 7th place worldwide in Solar Photovoltaic (PV) Cell production and 9th place in Solar
Thermal Systems with nations like Japan, China, and the US currently ranked far ahead.
Globally, solar is the fastest growing source of energy (though from a very small base) with
an annual average growth of 35%, as seen during the past few years.
28

29. Electrical Vehicle and Future Factory
The global economic recession in the late 2000s led to increased calls for automakers to
abandon fuel-inefficient SUVs, which were seen as a symbol of the excess that caused the
recession, in favor of small cars, hybrid cars, and electric cars.
Tesla Roadster recharging from a conventional outlet.
California electric car maker Tesla Motors began development in 2004 on the Tesla
Roadster, which was first delivered to customers in 2008. The Roadster was the first
highway legal serial production all-electric car to use lithium-ion battery cells, and the first
production all-electric car to travel more than 200 miles (320 km) per charge. Since 2008,
Tesla sold approximately 2,450 Roadsters in over 30 countries through December
2012. Tesla sold the Roadster until early 2012, when its supply of Lotus Elise gliders run
out, as its contract with Lotus Cars for 2,500 gliders expired at the end of 2011. Tesla
stopped taking orders for the Roadster in the U.S. market in August 2011, and the 2012
Tesla Roadster was sold in limited numbers only in Europe, Asia and Australia. The Tesla
vehicle, the Model S was released in the U.S. on 22 June 2012 and the first delivery of a
Model S to a retail customer in Europe took place on 7 August 2013. Deliveries in China
began on 22 April 2014. The next model was the Tesla Model X. In November 2014 Tesla
29

30. delayed one more time the start of deliveries to retail customers, and announced the
company expects Model X deliveries to begin in the third quarter of 2015.
The Mitsubishi i-MiEV was launched in Japan in 2009.
The Mitsubishi i-MiEV was launched in Japan for fleet customers in July 2009, and for
individual customers in April 2010, followed by sales to the public in Hong Kong in May
2010, and Australia in July 2010 via leasing. The i-MiEV was launched in Europe in
December 2010, including a rebadged version sold in Europe as Peugeot iOn and Citroën C-
Zero. The market launch in the Americas began in Costa Rica in February 2011, followed
by Chile in May 2011. Fleet and retail customer deliveries in the U.S. and Canada began in
December 2011. Accounting for all vehicles of the iMiEV brand, Mitsubishi reports around
27,200 units sold or exported since 2009 through December 2012, including the minicab
MiEVs sold in Japan, and the units rebadged and sold as Peugeot iOn and Citroën C-Zero in
the European market.
Senior leaders at several large automakers, including Nissan and General Motors, have
stated that the Roadster was a catalyst which demonstrated that there is pent-up consumer
demand for more efficient vehicles. GM vice-chairman Bob Lutz said in 2007 that the Tesla
Roadster inspired him to push GM to develop the Chevrolet Volt, a plug-in hybrid sedan
prototype that aims to reverse years of dwindling market share and massive financial losses
for America's largest automaker. In an August 2009 edition of The New Yorker, Lutz was
30

31. quoted as saying, "All the geniuses here at General Motors kept saying lithium-ion
technology is 10 years away, and Toyota agreed with us – and boom, along comes Tesla. So
I said, 'How come some tiny little California startup, run by guys who know nothing about
the car business, can do this, and we can't?' That was the crowbar that helped break up the
log jam."
GM defined the Chevrolet Volt as an extended range electric vehicle.
The most immediate result of this was the announcement of the 2010 release of
the Chevrolet Volt, a plug-in hybrid car that represents the evolution of technologies
pioneered by the GM EV1 of the 1990s. The Volt can travel for up to 40 miles (64 km) on
battery power alone before activating its gasoline-powered engine to run a generator which
re-charges its batteries. Deliveries of the Volt began in the United States in December 2010,
and by late 2011 was released in Canada and Europe. Deliveries of its sibling, the Opel
Ampera, began in Europe February 2012.
The first Nissan Leaf delivered in the U.S. went to a customer in the San Francisco Bay Area.
The Nissan Leaf, introduced in Japan and the United States in December 2010, became the
first modern all-electric, zero tailpipe emission five door family hatchback to be produced
31

32. for the mass market from a major manufacturer. As of January 2013, the Leaf is also
available in Australia, Canada and 17 European countries.
The Better Place network was the first modern commercial deployment of the battery
swapping model. The Renault Fluence Z.E. was the first mass production electric car enable
with switchable battery technology and sold for the Better Place network in Israel and
Denmark. Better Place launched its first battery-swapping station in Israel, in KiryatEkron,
near Rehovot in March 2011. The battery exchange process took five minutes. As of
December 2012, there were
Battery placement
In contrast to most other battery electric vehicles including the Roadster, the battery pack of
the Model S forms the floor of the vehicle between the axles, providing the vehicle with
several advantages. Most notably, since the battery pack is the single heaviest component of
the vehicle, the Model S has a center of gravity height of only 18 inches (46 cm) (about the
same as a Lotus Elise), helping it to achieve a lateral acceleration of 0.9g and good
protection against rollover. Secondly, the absence of a heavy engine between the front or
rear axle allows the bulk of the mass to be centralized between the axles, lowering rotational
inertia allowing it to turn more quickly for its weight. Thirdly, the placement of the battery
pack increases the rigidity of the passenger compartment, improving the passive safety of
the vehicle. Fourth, placing the
battery pack under the vehicle makes it possible to remove or replace the entire unit in 90
seconds, either for maintenance or for Tesla's Battery Swap service.
Charger
The Model S charge port is located in front of the left taillight
32

33. Model S charging connectors at the Tesla store in Austin, Texas
In all markets the charge port is located behind a door in the left taillight. During charging,
the charge port pulses green. The frequency at which the charge port's light pulses slows
down as the charge level approaches full. When charging is complete, the light stops pulsing
and is solid green.
The Model S comes equipped with a different charger and connector in North American
versus other markets, derived from differences in the local electric grid systems.
E2O
Still too expensive (especially outside Delhi) for what is a small hatchback
• Strictly a 4-seater car. Same price competitors can accommodate 5
• Top speed of merely 85 km/h. Not a car for the open road
• Bumpy ride quality (rear seat) & mediocre dynamics. Suspension needs better tuning
• Range restriction means you really can't take it out on the highway
• Fit & finish in some areas leave a lot to be desired
• you will need a charging point in your parking spot
The claimed range of this car has been extended to 140km (from 110km) to dispel range
anxiety. This, however, comes at a cost – the battery now takes a long nine hours to charge
as opposed to the five hours for the two-door. A fast charger that can charge 90 percent of
the battery in 90 minutes has been made available, but it costs somewhere in the range of Rs
6 lakh, which isn't cheap. In any case, the 140km range is under test conditions, which are
33

34. unlikely to be replicated in everyday driving: we drained 40 percent of the battery with
30km of (admittedly hard) driving, which translates to a range of 75 km.
Basics of Electromobility
The electric vehicle drive system includes:-
• High-voltage battery with control unit for battery regulation and charger
• Electric motor/generator with electronic control (power electronics) and cooling system
• Transmission including the differential
• Brake system
• High-voltage air conditioning for vehicle interior climate control
34

35. 1. Electric motor/generator
2. Transmission with differential
3. Power electronics
4. High-voltage lines
5. High-voltage battery
6. Electronics box with control unit for battery regulation
7. Cooling system
8. Brake system
9. High-voltage air conditioner compressor
10. High-voltage heating
35

36. 11. Battery charger
12. Charging contact for external charging
13. External charging source
Production Process of Mahindra Reva’s Car
The Mahindra group invested around 100 crore and built a factory in 2012, with the aim of
manufacturing 30,000 electric cars every year. This environmentally friendly plant scored 82
points in the review conducted by Indian Green Building Council and thus the 'platinum'
rating. So In this plant solar energy is being used which is important for the future, As non
-renewable source of energy are going depleted in very short span of time. So there is a need
for alternative source of energy and answer for this question is Solar energy.
Here are some cool energy saving features used at the plant
• Solar energy caters to 35% of energy consumption
• Solar powered charging stations
• Drip irrigation system for the gardens
• 100% treatment and reuse of gray waste and onsite rain harvesting
• Improved fresh air and ventilation systems
• Skylights that reduce electricity consumption
• LED lighting all over the factory
Manufacturing electric cars
36

37. The only car manufactured in this plant is the Mahindra e2o. The first thing that gets noticed
after entering the plant is the organization of factory space. The floor space was divided into
multiple sections, with each stage progressively completing a part of the manufacturing
process.
The manufacturing process is as follows:-
• In the first stage of manufacturing the e2o, the power-train, motor and suspension are
fitted in the chassis.
• In the next stage, the steering racks and break systems of the vehicle are fitted
• In the next stage, a unique number is provided for the vehicle. After this the AC
is fitted in the system. Next the control boards are fit in. This contains the energy
management system and other systems which are pre-assembled.
• Next, the roof gets bonded to the vehicle
• The battery pack is then fitted into the car. The battery pack is sub assembled from
another section known as the battery testing area. The battery pack is then covered using
a battery box. The inlet and outlet air cooled system is then fitted on the battery. The
pack is designed to use the cabin air and cool itself. If the AC is on, it uses cool air from
the compressor to cool itself.
37

38. The roof gets bonded to the vehicle
The second line
38

39. • In the next stage they bond the vehicle with pre-colored panels. They use an adhesive to
hold the vehicle and the panel.
• Next the rear bumper, roof liner, seat belts are fitted in.
• The glass is then bonded in the front and rear.
• Miscellaneous items like front, rear speakers, seats, doors are fit in. Other parts like the
fender, brake oil filling, charging sockets, wiper systems and steering system are too
fitted at this stage.
• After this process there is a final quality check. The wheels are assembled, the vehicle is
ready to roll out for the first time, for real testing.
• At the end of the line, there are lots of tests performed. These include wheel alignment,
shower testing and road tests.
• The vehicles in the solar park are then delivered to customers
Layout for Solar-Electric Car Manufacturing Factory:-
39

40. The procedure for estimating suitability of an area for construction of a Solar-electric car
Factory and they are:-
1. Analysis of activity (orientation of occurrences, their scope and possible environmental
impacts).
2. Preparation of a database containing space data presented in form of thematic maps
3. Preparation of attractiveness model (using elimination and comparison criteria).
4. Preparation of vulnerability model.
5. Preparation of convenience model (by combining attractiveness and vulnerability
maps),
6. Definition of a narrow and broad selection of location.
7. Inspection of the location and field data gathering.
8. Evaluation and rating of results.
Key Features of Future Factory are:-
40

41. 1. Virtual world
Factories are increasingly being networked intelligently. But it is not just the digital
world that is making its way into the smart factory. Whole plant buildings and
equipment are increasingly moving into the virtual world and in the year 2020 ,whole
factory will be connected to the internet.
2. IT security
As the whole factory will be connected through internet in the future, So then Security
will be the key. As Industry holds out the promise of smarter manufacturing, but with
increased connectivity between plants and machinery, the risk of cyber attacks rises.
That’s a major problem for companies trying to transform their manufacturing
operations to take advantage of the new technologies. Germany’s Deutsche Telekom
polled IT and business decision makers about Industry and found that almost 90 percent
of them see IT security as the biggest hurdle in achieving full implementation of the new
processes. Moreover, 84 percent believe that connecting people, machines and
production facilities will open new doors to attackers
3. Free the robots:- Man and machine cooperate more closely
In this concept the human being and the machine have to put carefully around one
another, keeping their distance. The robots as a rule are confined to cages, sometimes
even hidden behind a laser curtain. If a person opens the door to the box or steps into the
light barrier, warning horns blare and the robot landscape freezes in place in an instant.
Work comes to a stop and has to be laboriously ramped up again. Safety now takes
priority. As long as people and robots perform their tasks separately, divided by safety
arrangements under DIN and ISO, manufacturing experts and process designers cannot
fully exploit the machines’ potential.
2.3 Related Literature Review
41

42. Worldwide as well as in India, taxi services market is variedly unorganized. However, in the
recent past, companies started capitalizing this market and in no time several large as well as
small radio taxi operators expanded rapidly in the Indian radio taxi market. Since, 2009 the
market has witnessed the compounded annual growth rate (CAGR) of 41.90% in terms of
market revenues. Increasing consumer disposable income along with poor public transport
system in the country has give rise to a new market of radio taxi services. According to
“India Radio Taxi Services Market Forecast & Opportunities, 2017” the radio taxi services
market in India has huge untapped opportunities. There are very few players in the
organized radio taxi services market who have failed to address the market demand due to
unavailability of required number of cabs. The national capital region Delhi-NCR has
highest potential where almost 30% calls are dropped by the companies due to unavailability
cabs/taxis. It is estimated that India radio taxi services market will reach 30,000 taxis by
2017. The company's such as Meru Cabs has resulted in 120% increase in Net (loss) profit
after tax for their equity shareholder which shows the kind of return on investments this
newly created market segment is witnessing. The article is retrieved from the “India Radio
Taxi Services Market Forecast & Opportunities, 2017” report
Indian Taxi market is a booming sector in the transport industry of India. It is evident that
out of every five cars on Indian roads, two are taxis. Taxis have always had a special,
nostalgic presence in every Indian’s psyche. The journey of taxi cabs in India began
somewhere in 1910as a replacement of horse wagons. The first taxis were the traditional
Ambassador and Premier Padmini painted black and yellow to serve the Indians for daily
commuting. These were metered taxis that gradually had spread over to various cities
including Mumbai, Delhi, Bangalore and other major cities of the country. Today, the cab
industry has grown from the traditional black and yellow metered taxis paving way to hi-end
technology driven machines. Taxis being an integral part of the Indian automotive market in
metros like Delhi, Mumbai, Banglore, Chennai, the total number of fleet taxis has , touched
the 5,000-mark (Sen 2013). Mumbai which represents the commercial capital of India has
taxis running under the Mumbai Taxi Union (MTU) banner, plus a few thousand more on
the Mumbai-Pune, Mumbai-Nashik and other
42

43. regional sectors, one can imagine the importance of it. This is in addition to several thousand
private taxis. The black and yellow taxis in Mumbai are integral part of the city's heritage.
These metered taxis ply throughout Mumbai and have monopoly from Bandra to Churchgate
on the Western line and Sion to Chatrapati Shivaji Terminus on the Central line. A
mechanical meter decides the fare and is proportional to the distance travelled. The article is
retrieved from Pooja Singh and Rekha Singhal, Journal of Case Research, vol 5, issue 02,
“Priyadarshni Taxi Service: Steering the Wheel”.
This paper contributes to the growing literature on peer-to-peer (P2P) applications through
an ethnographic study of auto-rickshaw drivers in Bengaluru, India. We describe how the
adoption of a P2P application, Ola, which connects passengers to rickshaws, changes drivers
work practices. Ola is part of the ‘peer services’ phenomenon which enable new types of ad-
hoc trade in labour, skills and goods. Auto-rickshaw drivers present an interesting case
because prior to Ola few had used Smartphones or the Internet. Furthermore, as financially
vulnerable workers in the informal sector, concerns about driver welfare become prominent.
Whilst technologies may promise to improve livelihoods, they do not necessarily deliver.
We describe how Ola does little to change the uncertainty which characterizes an auto
drivers’ day. This leads us to consider how a more equitable and inclusive system might be
designed. This article is retrieved from Ahmed, Bodwell, Zade, Muralidhar, Dhareshwar,
Karachiwala, Cedrick and Neil, ACM, “Peer-to-peer in the workplace: A view from the
road”.
City transportation is an increasing problem. Public transportation is cost effective, but do
not provide door-to-door transportation. This makes the far more expensive cabs attractive
and scarce. This paper proposes a location-based Cab-Sharing Service (CSS), which reduces
cab fare costs and effectively utilizes available cabs. The CSS accepts cab requests from
mobile devices in the form of origin-destination pairs. Then it automatically groups close by
requests to minimize the cost, utilize cab space, and service cab requests in a timely manner.
Simulation based experiments show that the CSS can group cab requests in a way that
effectively utilizes resources and achieves significant savings, making cab-sharing a new,
promising mode of transportation. This article is retrieved from Gyozo Gidofalvi and
43

44. Torben Bach Pederson, “Cab Sharing: an effective, door–to–door, on–demand transportation
service” paper.
One of the best examples that can be quoted for disruptive innovation, that the industry
witnessed very recently is Cab Aggregation using Mobile Application, which is a result of
technological progress making the transportation, especially within the city limits affordable
and trouble-free for all categories of people. These are also usually referred to as Taxi
Aggregators, Cab Aggregators or Car Aggregators and in management research terminology
they are cited as Ride-sourcing / Ride-hailing companies. With the arrival of the Uber and
Ola these services became very popular in all the major cities. This disruption in one way
provided a solution to the so called Taxi transportation industry, which till then was much
unorganized and not so affordable. With their ground-breaking business models Uber and
Ola primarily concentrated on matching the demand and supply, thus creating a win-win
situation for the drivers, customers and aggregators themselves. Initially when these
companies started, their primary business model followed was to connect the drivers and
customers, gaining some commission out of the transaction. Then the major challenge that
these two companies realized is that many drivers signed up themselves for both Uber and
Ola to get the rides. To avoid this trend both Uber and Ola is now trying to shift its business
model to partly inventory, where it will own some of the cabs lending them to its drivers
who work exclusively for them. With this the paper aims to present the overview of the Car
Aggregation industry in India, current scenario, issues and finally looks at the possibilities of
consolidation referring the recent developments happening in the industry. Also the paper
finally provides the recommendations that can be implemented to improve services which
will benefit ride-hailing companies like Uber and Ola as well as the customers utilizing the
services and the drivers. This paper, having covered the topic extensively even with the
recent developments in the industry can help the future researches as a ready reference.
RIDE Model, R- Research, I- Innovate, D- Deploy, E-Execute has been designed and
proposed for the benefit of future researches and interested researchers in this area are
encouraged to use this model further as reference for their empirical study. This article is
retrieved from Mr. Sai Kumar Kalyan Sarvpelli and Dr. N. R. Mohan Prakash, IJSDR, April
44

45. 2016, Volume 1, Issue 4, “Cab aggregation industry in india – an overview, current scenario,
issues and possibilities for consolidation” paper.
The taxi aggregator services (also called as ride sourcing services) have become popular in
the last few years in India. The companies managing these services call themselves as
technology companies. This excludes them from the purview of transport regulations that a
typical transport operator has to adhere to. One of the major reasons for the success of Ola
and Uber, the two ride sourcing services in India, is their ability to digitally match supply
and demand by successful deployment of technology. Technology has enabled the right
information to be available to the right persons at the right time. The business model of taxi
aggregators has intelligently woven solutions to address the gaps in the present call taxi
system – namely driver behavior, lack of focus on performance, uncertainty of demand,
difficulty in matching capacity with demand, increase in prices etc. With technology
comprising of software algorithms enabling accurate matching of demand and supply, the
wait time is reduced for the customer and for the drivers, the idle time is reduced. The other
benefit for the consumer is that travel using ride sourcing services is at an affordable cost
due to the volume of the operations. This has created a win-win-win situation for all – the
taxi aggregator gets his commission, the driver gets assurance of demand and the consumer
has to wait less and pay reasonable charges for availing the taxi services. The pricing
structure is also very dynamic. This paper attempts to study the technique by which
performance of these aggregator services can be measured. The article is retrieved from G.
Venkatesh and George Easaw, SAMVAD: SIBM Pune Research Journal, Vol X, 26-36,
December 2015, “Measuring the Performance of Taxi Aggregator Service Supply Chain”.
The rapid growth of on-demand ride services, or ride sourcing, has prompted debate among
policy makers and stakeholders. At present, ride sourcing’s usage and impacts are not well
understood. Key questions include: how ride sourcing and taxis compare with respect to trip
types, customers, and locations served; whether ride sourcing complements or competes
with public transit; and potential impacts on vehicle miles traveled. We address these
questions using an intercept survey. In spring 2014, 380 complete surveys were collected
45

46. from three ride sourcing “hot spots” in San Francisco. Survey results are compared with
matched-pair taxi trip
data and results of a previous taxi user survey. The findings indicate ride sourcing serves a
previously unmet demand for convenient, point-to-point urban travel. Although taxis and
ride sourcing share similarities, the findings show differences in users and the user
experience. Ride sourcing wait times are markedly shorter and more consistent than those of
taxis, while ride sourcing users tend to be younger, own fewer vehicles and more frequently
travel with companions. Ride sourcing appears to substitute for longer public transit trips but
otherwise complements transit. Impacts on overall vehicle travel are ambiguous. Future
research should build on this exploratory study to further understand impacts of ride
sourcing on labor, social equity, the environment, and public policy. The article is retrieved
from Lisa Rayle, Susan Shaheen, Nelson Chan, Danielle Dai, and Robert Cervero “App-
Based, On-Demand Ride Services: Comparing Taxi and Ride sourcing Trips and User
Characteristics in San Francisco”
To replace taxi services in Mumbai is difficult as we are all dependent on it. We use them to
get around town comfortably and conveniently. Taxis made an appearance on Mumbai’s
roads when the population was on the rise and there was a demand for a comfortable mode
of travel. The yellow and black colors are synonymous with the Mumbai taxi. Even if your
taxis may not be up to safety standards, people in the city have a strong emotional connect
with them. Taxi drivers have over the years provided excellent service, with their honesty
and politeness, which can’t be seen in any other part of the country. New taxis are replacing
the old, as people seek improvements where safety and comfort are concerned. But taxis are
an indispensable part of the public transport system. The article is retrieved from Dr. Kanjer
Hanif and Mr. Nagda Sagar, Reflections Journal of Management (RJOM) Volume 5,
January 2016, “An Empirical Research on the Penetration Levels for a Call-a-Cab Service in
Mumbai”.
Taxis play an important role as a transportation alternative in many cities. In developed
countries, taxis tend to be used as a substitute for private vehicles by passengers who use the
service for convenience reasons or because they do not want to own a car. In developing
46

47. countries, taxis are often used to supplement inadequate public transport systems based on
buses or trains. But the role played by taxis can be as diverse as one can think. This study
intends to provide a comprehensive and systematic analytical overview of exis ting global
taxi schemes and
their respective policies and regulations. A review of the literature regarding energy and
sustainability issues is also presented. The importance of taxi operations in delivering good
services in developing country cities is focused in the final part of the study. The current
conditions found in the city of Rio de Janeiro, Brazil, were discussed due to projects under
way to improve public transport services. These projects are under development in order to
respond to a specific demand during the 2014 FIFA World Cup and the 2016 Olympic
Games. The difficulty of developing strategic planning policies together with the complexity
and specificity of designing an adequate regulation scheme is further developed. This article
is retrieved from Antonio Nelson Rodrigues Da Silva and Ronaldo Balassiano, BNDES, Rio
De Janeiro, 18-19 may 2011, “Global taxi schemes and their integration in sustainable urban
transport systems”.
47

48. Chapter 3
Methodology and Analysis
Methodology
For this project we have used a descriptive research methodology. Descriptive research
consists of surveys and fact-finding enquiries of different types. The main objective of
descriptive research is describing the state of affairs as it prevails at the time of study. The
term ‘ex post facto research’ is quite often used for descriptive research studies in social
sciences and business research. The most distinguishing feature of this method is that the
researcher has no control over the variables here. He/she has to only report what is
happening or what has happened. Majority of the ex post facto research projects are used for
descriptive studies in which the researcher attempts to examine phenomena, such as the
consumers’ preferences, frequency of purchases, shopping, etc. Despite the inability of the
researchers to control the variables, ex post facto studies may also comprise attempts by
them to discover the causes of the selected problem. The methods of research adopted in
conducting descriptive research are survey methods of all kinds, including correlational and
comparative methods.
For this project all the data collected is a secondary data collected from the different sources
available. Secondary data are the data collected by a party not related to the research study
but collected these data for some other purpose and at different time in the past. If the
researcher uses these data then these become secondary data for the current users. These
may be available in written, typed or in electronic forms. A variety of secondary information
sources is available to the researcher gathering data on an industry, potential product
applications and the market place. Secondary data is also used to gain initial insight into the
research problem. Secondary data is classified in terms of its source – either internal or
external. Internal, or in-house data, is secondary information acquired within the
organization where research is being carried out. External secondary data is obtained from
outside sources.
48

49. Private vehicle to public vehicle change in thinking
Analysis
There was a time in India, not too long ago, when travelling by a car meant one of two
things - you were either in a private car or in a taxi. Now, app-based car services for instant
hire have become extremely popular amongst certain sections in India's metro cities.
Companies like Uber and Ola have been doing extremely good business in India, seeing a
rapid spike in their name recognition. The business has been so good that Uber claims
Kolkata is its fastest growing market after the US and has better growth than London. After
Kolkata, Mumbai is its second fastest growing market and other Indian cities aren’t far
behind.
If we rewind time by five years, no one in India would know about Ola because it didn’t
exist. But now, the app is being used to complete over 7,50,000 rides every day with more
than 2,50,000 cars on the road.
Private Vehicle OR Aggregator Service?
Taxi aggregators such as Ola, Uber, Taxi For Sure, Meru, etc. have changed the
transportation system totally. The cabs are available for use at minimal cost. One can book
the cab online via their mobile application easily. The cab arrives at doorstep within 5
minutes.
49

50. For representation purpose, aggregator Ola’s costing model for Mumbai city is shown here.
Sedan
Petrol Diesel CNG
Vehical Cost 8,35,000.00₹ 9,87,000.00₹ 9,05,000.00₹
Fuel Cost/Ltr (or kg) 77.46₹ 64.87₹ 43.45₹
Km/Ltr(or Kg) 12 18 18
Annual Maintanance 12,000.00₹ 18,000.00₹ 18,000.00₹
Monthly Parking Cost 2,000.00₹ 2,000.00₹ 2,000.00₹
Annual Parking Cost 24,000.00₹ 24,000.00₹ 24,000.00₹
Monthly Travel (Kms) 1800 1800 1800
Annual Travel 21600 21600 21600
Annual Fuel Cost 1,39,428.00₹ 77,844.00₹ 52,140.00₹
Annual Intrest on Vehical cost 1,00,200.00₹ 1,18,440.00₹ 1,08,600.00₹
Monthly Salary to Driver 15,000.00₹ 15,000.00₹ 15,000.00₹
Annual spending on salary 1,80,000.00₹ 1,80,000.00₹ 1,80,000.00₹
Total Annual Spending 4,55,628.00₹ 4,18,284.00₹ 3,82,740.00₹
Hatchback
Petrol Diesel CNG
Vehical Cost 6,91,000.00₹ 8,69,000.00₹ 7,61,000.00₹
Fuel Cost/Ltr (or kg) 77.46₹ 64.87₹ 43.45₹
Km/Ltr(or Kg) 15 20 17
Annual Maintanance 12,000.00₹ 18,000.00₹ 18,000.00₹
Monthly Parking Cost 2,000.00₹ 2,000.00₹ 2,000.00₹
Annual Parking Cost 24,000.00₹ 24,000.00₹ 24,000.00₹
Monthly Travel (Kms) 1800 1800 1800
Annual Travel 21600 21600 21600
Annual Fuel Cost 1,11,542.40₹ 70,059.60₹ 55,207.06₹
Annual Intrest on Vehical cost 82,920.00₹ 1,04,280.00₹ 91,320.00₹
Monthly Salary to Driver 15,000.00₹ 15,000.00₹ 15,000.00₹
Annual spending on salary 1,80,000.00₹ 1,80,000.00₹ 1,80,000.00₹
Total Annual Spending 4,10,462.40₹ 3,96,339.60₹ 3,68,527.06₹
50

51. SUV
Diesel
Vehical Cost 15,11,000.00₹
Fuel Cost/Ltr (or kg) 64.87₹
Km/Ltr(or Kg) 12
Annual Maintanance 18,000.00₹
Monthly Parking Cost 2,000.00₹
Annual Parking Cost 24,000.00₹
Monthly Travel (Kms) 1800
Annual Travel 21600
Annual Fuel Cost 1,16,766.00₹
Annual Intrest on Vehical cost 1,81,320.00₹
Monthly Salary to Driver 20,000.00₹
Annual spending on salary 2,40,000.00₹
Total Annual Spending 5,80,086.00₹
51

52. Micro Mini PrimeSedan PrimePlay PrimeExec PrimeSUV LUX
BaseFare 55.00₹ 70.00₹ 70.00₹ 70.00₹ 125.00₹ 150.00₹ 300.00₹
DiatanceFare
PerKm 17.00₹ 17.00₹ 20.00₹
Till20Km 6.00₹ 8.00₹ 11.00₹ 11.00₹
After20Km 12.00₹ 16.00₹ 16.00₹ 16.00₹
RideTimeFare 1.00₹ 1.00₹ 1.00₹ 1.00₹ 2.00₹ 2.00₹ 3.00₹
TaxRate 5.8% 5.8% 5.8% 5.8% 5.8% 5.8% 5.8%
WeekdaysOfficeTravel
OneWayTrip(km) 30 30 30 30 30 30 30
EstimatedonewayRideTime
(inMin)
65 65 65 65 65 65 65
TotalDailyTravel(Kms) 60 60 60 60 60 60 60
SurgePrice## 1 1 1 1 1 1 1
OnewayTripCost 360.00₹ 455.00₹ 515.00₹ 515.00₹ 765.00₹ 790.00₹ 1,095.00₹
OneWayTripCost(inclusiveof
Tax) 380.88₹ 481.39₹ 544.87₹ 544.87₹ 809.37₹ 835.82₹ 1,158.51₹
DailyTravelCost 761.76₹ 962.78₹ 1,089.74₹ 1,089.74₹ 1,618.74₹ 1,671.64₹ 2,317.02₹
DailyTravelCostperweek 3,808.80₹ 4,813.90₹ 5,448.70₹ 5,448.70₹ 8,093.70₹ 8,358.20₹ 11,585.10₹
MonthyWeekdayTravel 15,235.20₹ 19,255.60₹ 21,794.80₹ 21,794.80₹ 32,374.80₹ 33,432.80₹ 46,340.40₹
WeekendTravel
OneWayTrip(km) 18.75 18.75 18.75 18.75 18.75 18.75 18.75
EstimatedonewayRideTime
(inMin) 35 35 35 35 35 35 35
TotalWeekendTravel(Kms) 37.5 37.5 37.5 37.5 37.5 37.5 37.5
SurgePrice## 1.6 1.6 1.6 1.6 1.6 1.6 1.6
OnewayTripCost 324.00₹ 408.00₹ 498.00₹ 498.00₹ 822.00₹ 862.00₹ 1,248.00₹
OneWayTripCost(inclusiveof
Tax) 342.79₹ 431.66₹ 526.88₹ 526.88₹ 869.68₹ 912.00₹ 1,320.38₹
TravelCostforoneday 685.58₹ 863.33₹ 1,053.77₹ 1,053.77₹ 1,739.35₹ 1,823.99₹ 2,640.77₹
WeekendTravelperWeek 1,371.17₹ 1,726.66₹ 2,107.54₹ 2,107.54₹ 3,478.70₹ 3,647.98₹ 5,281.54₹
MonthyWeekendTravel 5,484.67₹ 6,906.62₹ 8,430.14₹ 8,430.14₹ 13,914.82₹ 14,591.94₹ 21,126.14₹
AnnualTravel 2,48,638.46₹ 3,13,946.69₹ 3,62,699.33₹ 3,62,699.33₹ 5,55,475.39₹ 5,76,296.83₹ 8,09,598.53₹
Spending on Aggregators
52

53. Assumptions
1. Oil Change frequency for petrol car every 10,000 km, Diesel Car every 5,000 Km & for CNG
same as Desiel.
2. Frequency of regular Service Maintance for all (petrol, desiel & CNG) is done after every 2
Months.
3. Parking Cost is cosidered on monthly average basis.
4. All Vehicals are used for a term of 5 years.
5. Travel per month is considered for 25 Days as office commuting (1500kms ie. 60kms in a
day). Rest 300kms is considered as road trips & other recreational travel done in the month.
Case of Solar Powered vehicles
Mahindra e2o is categorized under Ola Micro category as per company norms. Hence following
calculations are made using Ola Micro’s costing:-
53

54. Assumptions
1. Requires 18 units of electricity for full charge.
2. Cost of electricity is Rs. 5/unit
3. Tax rate is considered as 6% for 1st
year and 4% for second and 3rd
year.
4. The vehicle considered is e2o P2.
If the expenses for fuel are compared with Diesel, petrol and CNG, solar energy costs lesser.
Hence per km charge can be revised on lower side. It will further reduce the total annual
spending on commute.
For the aggregators, the USPs are:-
1. Economic factor/s
2. Social factor/s
3. Environmental factor/s
Economic Factor/s
Owning and driving a car is a cost to individual. The cars purchased are mostly used for family
use, or to go to office with comfort & luxurious ambience of car. All these come at a cost.
Let’s take an example.
If a person from a metro city (Mumbai) purchases a car on loan at an interest rate of 11% to
reach his office with peaceful mind. The distance between his home and office is 15 kms. It
takes around 20 minutes to reach from home to office.
Cost of a car:- Rs. 500000/-
Interest paid on capital:- Rs. 55000/-
Total payback from buyer to Bank:- Rs. 555000/-
54

55. EMI (3 yrs):- Rs. 15416.66/- (Rs.555000/36). The figure can be rounded to Rs. 15500/-.
Petrol price:- Rs. 77.5/litre.
Mileage of vehicle:- 15kms/ltr. In city, because of traffic conditions the mileage reduces. Hence
to driver from home to office and back to home (round trip), the vehicle will consume minimum
2 litres of petrol.
Total fuel cost:- Rs. 155/- per day. It can be rounded off to Rs. 150/- for ease of calculations.
Let’s assume that he goes to the office 26 days in a month with one day weekoff.
Parking charges vary from location to location.
Driver salary is around Rs. 15000/- for a month service with one weekoff. If car is self driven,
the cost need not to be included.
Let’s say maintenance cost would be around Rs. 2000/- per month.
Total Expense for a month (With Driver) = Rs. 15500+Rs. 3900+Rs. 15000+Rs. 2000= Rs.
36400/- which excludes parking charges and other charges.
Total Expense for a month (Without Driver) = Rs. 15500+Rs. 3900+Rs. 2000= Rs. 21400/-
which excludes parking charges and other charges.
Hence one can understand that it costs around Rs. 21400/- without driver and Rs. 36400/- with
driver to own a vehicle in a city link Mumbai and use it daily for travelling purpose.
Now let’s take same example and understand how much it will cost by using aggregators’
service. For representation purpose, we have referred cab rates of cab aggregator company Ola
Cabs. As we had considered a small car with cost of 5 lakhs in earlier example, we will consider
that the person uses Ola Mini for his travelling needs.
Ola fare calculation:-
Base Fare:- Rs. 70/-
55

56. Fare for 15 kms:- Rs. 8*15= Rs. 120/-
Ride time fare:- Rs. 20 for 20 minutes.
Tax @ 5%:- 5% of total ride fare
Total ride fare:- Rs. 210/- excluding tax.
Ride fare including tax = Rs. 210 + Rs. 10 = Rs. 220/-
As the service will be used twice a day, total payment for day would be Rs. 220*2 = Rs. 440/-.
As the service will be used 26 times in a month, the total cost would be:- Rs. 440*26 = Rs.
11440/-.
Hence the total expenses for a month will fall from Rs.21400-Rs. 36400/- to Rs. 11400/- for
a month. The cost saving would be more than 50% (approx.). From economic point of view, it’s
better to choose for aggregator service over personal vehicles.
Social factor/s
1. Parking problems
In cities such as Mumbai, where there are high numbers of vehicles running on roads
throughout day and night, it is difficult to find place for parking. The parking charges are
also very high. If an aggregator service is used, parking won’t be an issue to a rider or an
end user.
2. Traffic problems
As there are enormous numbers of vehicles running onto roads, traffic problem is the
biggest issue in all the cities. In case of aggregators, the number of vehicles will reduce
tremendously as shared car will be used by multiple people multiple times in a day.
56

57. 3. Separation in space and time
During late night hours, the public transport is very thin. People can’t fashion their
lifestyle as they want. Uber or Ola caters perfectly to this particular psychosocial ‘need’
for separations in space and time.
Environmental factor/s
1. Fuel consumption
Because of traffic issues, the fuel consumption is very large in cities. Also for private
transportation, the public vehicles are largely preferred over public transport because of
rush. The non-renewable sources are getting exhausted as the use is continuous and not
decreasing. Aggregators will help to reduce the use of non-renewable resources.
2. Pollution
The pollution created because of vehicles is also huge as numbers of vehicles are
increasing day by day in search of luxury and comfort. If aggregator service is used,
number of vehicles will get reduced tremendously. It will automatically reduce the fuel
consumption and pollution.
57

58. The economic factors, social factors and environmental factors together have made people to
switch from private vehicle to public vehicle and pay as per the use with same comfort and
luxury while travelling.
Chapter 4
Conclusions & Recommendations
4.1 Conclusions derived
Costing
From the above project we know that these days it seems unaffordable to use private
vehicles. The use of aggregator based model is on the move these days. As we see from the
above calculations and explanations that the costing of ride sharing / private vehicles
reduces to a greater extent when used on solar energy.
Fuel
58

59. We hardly require any fuel for these types of solar powered vehicles. And we see that when
fuel is absent, the price related to the fuel also vanishes and we can have that much savings
for our organization.
4.2 Recommendations given
• Charging points should be increased
• More marketing is necessary for creating the awareness
• Ride charges should support the use of solar power
BIBILIOGRAPHY
• http://www.thehindubusinessline.com/portfolio/traffic-move-people-not-
cars/article2907527.ece
• http://www.dnaindia.com/analysis/standpoint-what-does-the-rise-of-uber-mean-for-
public-transport-in-indian-cities-2112827
• https://yourstory.com/2015/10/survey-ola-uber-impact/
• https://www.olacabs.com/fares/mumbai
• http://www.researchandmarkets.com/reports/2168584/india_radio_taxi_services_marke
t_forecast_and.pdf
• www.indianheadresort.com
59

60. • www.plugindia.com
• http://www.livemint.com/Industry/lGM9f97bTxoboIZebYtq9N/10-technologies-shaping-
the-future-of-solar-power.html
• http://energy.mit.edu/publication/future-solar-energy/
• http://indianpowersector.com/home/renewable-energy/solar_new/solar-power
• http://www.perovskite-info.com/perovskite-solar
• https://m.phys.org/news/2016-08-technique-perovskite-solar-cells.html
• http://tejas.iimb.ac.in/articles/75.php
• http://www.nrel.gov/international/raindia.html
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