NATIONAL INSTITUTE OF TECHNOLOGY,

TIRUCHIRAPPALLI
Department of Management Studies
Report Writing Assignment

Submitted By

R Rakesh Kumar

Roll Number

21511037

E-mail

rrk.nitt@gmail.com

Date of Submission

Submitted To

Dr. S. Mekala

30 March 2015

Assistant Professor
Department of Humanities
NIT-Trichy.

Report on the feasibility of introducing

Electric-Fuel Hybrid car in Urban Market

Submitted by
R Rakesh Kumar
R&D-Innovation Manager
Maruti Suzuki India Pvt Ltd.

Submitted to
Kenichi Ayukawa
Chief Executive Officer
Maruti Suzuki India Pvt Ltd

30th March 2015

Copy to : All Department Heads and Board of Directors

Purpose

To demonstrate the economic, technical and social viability of city distribution with electricfuel hybrid vehicles. Also to analyse the environmental benefits and acceptance in urban
markets.
Introduction
Green living and green concepts are the new buzzwords in our age, and use of electric
cars is gaining popularity in the green town. Also the rising concerns for environment and
excessive pollution caused by Internal Combustion Engines have forced humans to look at
Hybrid Cars as an alternative. The most obvious solution, after considering Hydrogen fuel
cell vehicles, is Electric and Hybrid cars. Hybrids use a normal engine coupled with an
electric motor while electric cars have batteries powering them. Hybrids shuffle between the
fuel powered engine and batteries for propulsion. Hybrids cost more as they have two engines
under the bonnet. Hybrid cars suffered in terms of sales as they cost a lot of money. Currently
the market offers you the Toyota Camry Hybrid and Toyota Prius, both of which cost
upwards of Rs 20lakh, but the potential buyer average ranges between Rs. 7-10lakh. This
booming market is the primary focus of this report.
Method adopted for Data Collection
The succeeding of a transition from a conventional gasoline based urban
transportation system towards a sustainable way of transportation, might depend on a quite
number of critical factors. The substitution of conventional vehicles through electric and/or
hybrid vehicles involves not only economical and environmental aspects, but aspects of
social acceptance might be as relevant as i.e. the cost-effectiveness.
In order to determine possible barriers with respect to the valuation of electric and
hybrid vehicles, questionnaires have been developed. The questionnaires are supposed to be
filled in by the critical actors, such as drivers, fleet owners and planners.
The Questionnaires
The questionnaires makes an inventory of expectations and experiences before the
electric or hybrid vehicle is put in use. By means of questionnaire, the following topics are
addressed,
The type of vehicle that is being used by the driver during working hours are asked (fuel
type, opinion).
The objectives of the Hybrid project (familiarity, importance).
Past experiences with hybrid and electric vehicles.
Expectation as well as the importance with respect to the performance of the electric or
hybrid vehicle (i.e. reliability, energy consumption, noise, acceleration, etc.)
General statements with respect to benefits and use of electric and hybrid vehicles. The
respondent is asked to indicate whether or not they agree.
The position at the job of the respondents of the first questionnaire is given. About
50% of the respondents were driver of the vehicle. About 20% of the questionnaires were
filled in by fleet managers, 13% by others and 11% by planners.

Importance and expectations for several issues related to the use of hybrid cars and trucks

Importance

Expectation

Discussions and Findings

In the first questionnaire, some statements are included in order to make an inventory of the
opinion about some general issues related to the prospects of electric and hybrid vehicles.
A. Electric vehicles have no prospect without governmental support.
B. Electric vehicles fit in easily in our organisation.
C. Our cities are very well suited for distribution of goods by means of electric vehicles.
D. Hybrid vehicles certainly have a future in urban purpose.
E. Hybrid vehicles have no prospect without governmental support.
F. Hybrid vehicles fit in easily in our organisation.
G. Our town is very well suited for distribution of goods by means of hybrid vehicles.
H. It is very important that in our cities more clean vehicles are deployed.
I. It is very important that in our cities more silent vehicles are deployed.
J. Even if electric/hybrid transport turns out to be somewhat more expensive than
conventional transport, it should still be preferred to conventional transport.
K. I have high expectations of technological innovation in general.
Future Expected Competitors Strategy
Brand
Mahindra Reva e20
Tata Megapixel
Hyundai i-10
Electtric
Tata indica vista
electric
Nissan Leaf
Toyota
Prius(Luxury)

Type
Electr
ic
Hybri
d
Electr
ic
Electr
ic
Electr
ic
Hybri
d

Seating
4
5

Milage
120 km full
charge

100 kmpl
120 km full
charge
200 km full
charge
150 km full
charge

90kmpl

5
5

Price
5-7 lakh
6-8 lakh
8-10 lakh
8-10 lakh
7-10 lakh
20-25
lakh

Conclusion
Currently, the Hybrid vehicle demand is less due to high sticker price. Early adopters
are willing to pay a higher upfront cost in exchange for a Hybrids environmental and fuel

benefits. Mainstream consumers, on the other hand, put more emphasis on the upfront cost of
a Hybrid car rather than the lifetime cost. The typical consumer discounts the value of future
savings; they prefer a dollar today over three dollars tomorrow (figuratively speaking.)
Along with governments subsidiary on Hybrid cars, will increase demand and make it truly
competitive with gas cars in terms of cost. Hence a New Market.