Slide 15 To 20 - Fleet Owner Profiling

Industry Assessment & Roadmap Outline
for ZE-MHDTs in India

D2b | Fleet Landscape & Application Analysis
Enabling Smart & Clean Tech Markets

Research Consulting Program Data
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Abbreviations
CO2 Carbon-di-oxide
CRISIL Credit Rating Information Services of India Limited

CV Commercial Vehicle
EV Electric Vehicle
GHG Green House Gas
GoI Government of India
GVW Gross vehicle weight
HDT Heavy Duty Truck
IDT Intermediate Duty Truck
LDT Light Duty Truck
LFOs Large fleet operators
LPG Liquefied petroleum gas

MAVs Multi Axle Vehicle
MDT Medium Duty Truck
MFOs Medium fleet operators

MHDT Medium & Heavy Duty Truck
NBFC Non- Banking Financing Company
21 March 2022 Industry Assessment & Roadmap for Zero-Emission Medium and Heavy-Duty Trucks in India 2
MHDT in India: Stats
Key Complexities of Existing Truck Operations
Identified Application
Surveyed Stakeholder Profile
Analysis of Identified Application
Prioritized segments for Electrification
Level-1 Beachhead model

MHDT in India: Stats
Higher than global
AA
Loading average
75% are sensitivity2
Small Fleet Lower than global
0.25 kmpl AA
average
Operator1 per 5 ton
Average km Higher Fuel
Average
per day consumption
Truck Age 8-
200-300 2.5-5
10-15 Years4 One-way km Average km/litre 25-30%
load & Speed
return trucks
25-40 overload
empty: Trucks
Average kmph3 50-70%
20%-30% involved in Operating
Pricing
12.3% of margins
3.2
road 10%-15%
INR/ton/km
accidents
1 Small fleet operators (SFOs): owns less than 6 trucks
2 Loading sensitivity: Sensitivity of fuel consumption to payload carried. 5 Ton increase in payload results to 0.25 km/l decrease
in fuel efficiency
3 With Expressways, average speed could be 30-60 kmph.
4 Average age of first life of truck is 8-10 years. After which it is re-sold and maximum life can go upto 15 years before getting Source: Primary Stakeholder consultation carried by pManifold’21
scrapped. GoI is working on limiting age of trucks to maximum 15 years mainly to control pollution and to reduce road accidents Note: Refer Annexure for detailed calculations
COMPLEXITIES
Overloading Entry Restrictions Driver Shortage Driver Stoppage

25-30% MHDT has 50 to Timing restriction 25% of vehicle stands Every 50-70 km driver
70% overloading. inside city for MAVs still due to driver stop to cool down
This leads to Example of Mumbai City: shortage vehicle, check wear and
• Higher emission • 6am to 12pm – closed
• 12pm to 4pm – open tear etc
• Road deterioration • 4pm to 9pm – closed
• 9pm to 6am – open
Possibly less Emission aspect of Ease of driving & less Frequent stoppage may
overloading propensity entry restrictions maintenance reduce as engine
addressed overheating no longer
an issue
POTENTIAL BENEFITS OF ELECTRIFICATION

Source: Primary Stakeholder consultation carried by pManifold’21
COMPLEXITIES
Rising Fuel Prices Diesel Theft (Diesel Chori) Unorganised Market Red-tapism
In last one year, diesel On an average, 10% of Unorganised cabin & Digitisation of
prices has gone up by diesel is stolen per trip load body-building, registration, passing
50% which are mostly cash and permit process can
transactions be part of e-truck policy
Most states provides Fuel theft is not e-trucks may be sold Digitisation of
subsidised electricity applicable. completely built for registration, passing
tariff for EV charging1 Batteries expected to optimum battery and permit process can
have high security. integration be part of e-truck policy
1 Many
POTENTIAL BENEFITS OF ELECTRIFICATION
companies are willing to invest in Renewable Energy Projects esp. solar & wind mills with support from Government Source: Primary Stakeholder consultation carried by pManifold’21
Identified Applications
Parcel/Market Load Perishable Goods Tankers Bulk Goods Others
Intra-city Retail (Short-haul)* Intra-city Retail (Short-haul)
Market Load
Parcel Load
Inter-city Wholesale (Medium-haul)*

Inter-city Wholesale (Medium-haul)
• Carry regular shape of goods packages • Carry irregular shape of goods packages
• High volume & low weight • Mix density payload
• Less overloading propensity • Moderate overloading propensity
*Short Haul: < 150 km Medium haul: 150 – 400 km Long Haul: > 400 km
Intra-city Retail (Short haul)

Vegetables & Fruits
Fish
Inter-city Wholesale (Medium haul)
• Deteriorate over a short time • Decay if not kept insulated or frozen

• Mix Payload • Mix Payload
• Less overloading propensity • Less overloading propensity
• Perishable & fragile • Perishable & fragile
21 March 2022 Industry Assessment & Roadmap for Zero-Emission Medium and Heavy-Duty Trucks in India
Edible Oil
Water
Petrol
Milk
• Design specifically to transport petroleum
• Permanently mounted tank for transporting • Mobile bulk container used to transport
products in bulk
water wholesale
• Highly regulated, dangerous and hence no
• More overloading propensity • Highly regulated and hence no overloading
overloading. Always one way empty trips
Distribution from Bottling plant
LPG Cylinders
LPG Bulker
Steel
Use point Distribution

Finished Product
Cement Bulker
Cement Bags
• Generally does medium to long haul trips. • It transport goods from factory outlet to • It transport goods from distributor to end-
• Carry Steel rolls, plates, sections & finished distributor (Medium & long haul trips) user. (Short & Medium haul trips)
products (Less volume, more weight) • NO Overloading • Carry cement bags & LPG cylinders
• More overloading propensity • Carry bulk goods • More overloading propensity
Intra-city Distribution
Coal & Mineral

Tippers
Inter-city Wholesale & Garbage
• Construction material/waste handling • Only used between mineral/quarry to bulk transportation centres
• Generally short haul trips • Short haul trips
• Low propensity of overloading • Low propensity of overloading
Drayage Application in India
JNPT Port
Stockyard
• All Major Ports are connected with

railway to transport Cargos from
ports
• Other cargos which are not
transported by rail are transported
by second-use of existing trucks
Railway line
Chennai
Port Trust
Cochin
Harbour
Terminus
Contribution of tractor-trailers (mostly second use) at ports is negligible as an application.

Surveyed Stakeholder Profile
Primary Application Secondary Application Surveyed Stakeholder
Parcel Load M Govindaswamy, Madurai Radha Transports, Madurai, Fleet Strength: 52 ICVs
Parcel/Freight
Market Load Rajesh Khandelwar, Owner of 15 trucks and operating more than 80 trucks
Ram Mohan : Vegetable Wholesaler owns 12 trucks &
Vegetables & Fruits
Perishable Goods S Vinoth Kumar: ICV Owner-driver, Koyambedu, Chennai
Fish Muthu Krishnan, Area Sales Manager – South, Ashok Leyland, Chennai
Petroleum Products
Water
Tankers Rajesh S, Vice President – Product Management, Ashok Leyland (Retired)
Edible Oil
Milk
Steel
Metals - Finished Products
Cement Bags Mohammad Shameer, Regional Sales Manager – South, Tata Motors, Bangalore
Bulk Goods
Cement Bulker
LPG Bulkers Muthu Krishnan, Area Sales Manager – South, Ashok Leyland, Chennai
Coal & Minerals (off-site)
Others Rajesh S, Vice President – Product Management, Ashok Leyland (Retired)
On-road Tippers
➢ Surveyed 2 Fleet operators, 1 Fleet owner, 3 Regional Sales Manager and 1 Market expert who has 30+ years of Truck marketing
and product management experience
➢ Operating in India
➢ Small to Large fleet operator
➢ At least 1 fleet owner from Primary application has been covered during consultation
Survey Theme – Fleet Owner
Fleet
characteristics
Major
themes of
Procurement Operational
process discussion characteristics
with fleet
owner
Financing
characteristics
Fleet and Ownership Profiling
MHDT Fleet Sizes
As per CRISIL data source, As per primary interaction with fleet owner,
Fleet operators Definitions Fleet operators Definitions

Small fleet operators (SFOs) Less than 6 trucks Driver-cum-owner 1 trucks
Medium fleet operators (MFOs) 6-20 trucks Individual owner 1-9 trucks
Large fleet operators (LFOs) >20 trucks Fleet Owner ≥10 trucks
• Small Fleet owner 10-20 trucks
• Large Fleet owner ≥20 trucks
Source: Road turns rough for small fleet operators, CRISIL, Nov 2018 Source: Primary Stakeholder consultation carried by pManifold’21
• Henceforth, this classification is used in our study
Fleet Owner’s Profiling
Buyers Type Fleet Sizes
➢ Although 70% of the buyers own
7%
Individual SFO (< 6 trucks) less than equal to 6 trucks, they
15% make up 27 % of the on-road fleet.
23% MFO (6-20 trucks)
Group Buyers (Fleet
55% Aggregators) ➢ On the similar line, 23% of buyer
30% LFO (>20 trucks)
Companies
who own 6-20 trucks makes up 38%
70%
of on-road fleet.
➢ Nearly 75% on road trucks in India
are in their first use, which is
Truck Use Contract Type typically 8-12 years
➢ The second use is usually an
Fixed Contract
addition of 5 years and is restricted
25% 10% (with shippers) to few specific applications. e.g. In-
First User 30% Port container movement, Raw
Transport service
provider material transport from quarry to
Pre-owned road hub, etc
75% 60% Captive Use
Fleet Owner’s Profiling
Financing Model Contract Design
3% 2% 100% 5%
5% 10%
15% 15% 80%
60% 60%
65% 100% 100% 100%
15% 95%
40%
20%
80% 30%
0%
Parcel/ Perishable Tankers Bulk Goods Others
per ton per kms / Per KL per km
Own Funds Finance with - NBFC Freight Goods
per ton / Per KL load basis (Fixed Route) per ton per kms / Per KL per km
Finance with - State/Private Banks Finance with - Others Per km basis (Fixed Load) per ton / Per KL load basis (Fixed Route)
Per km basis (Fixed Load)
Fixed Contract Basis
Fixed Contract Basis
➢ 80% of the truck owners are ➢ 65% of trucks are charged on the ➢ Parcel/Freight & Bulk goods are
financed by NBFC basis of ton per kilo-meters charged on per ton per kms basis
On-Road Fleet share of Applications
100% 95% 98% 100%
93%
90%
88%
90% 85%
82%
79%
80% 76%
73%
70%
70% 65%
60%
60%
50% 45%
40%
30.0%
30%
20% 15.0% 15.0%
10% 5.0% 5.0%

3.0% 3.0% 3.0% 3.0% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
0%
Market Parcel Load Vegetables Coal & Metals - Fish Petroleum Water Edible Oil Milk LPG Bulkers LPG Cement Cement On-road Steel
Load & Fruits Minerals Finished Products Cylinders Bulker Bags Tippers
(off-site) Products
➢ Segments identified based on electrification favourable attributes 1) trip distance 2) distance per day 3) overloading propensity
➢ Identified segment make up ~81% of fleet share of applications
Source: pManifold Analysis (Primary research Industry expert)
Share of Truck Segments by Applications
100%
Steel
90% On-road Tippers
Cement Bags
80%
Cement Bulker
70% LPG Cylinders
On-Road Fleet Share [%]
LPG Bulkers
60%
50% Coal & Minerals (off-site)
Milk
40%
Edible Oil
30% Water
Petroleum Products
20%
Fish
10% Vegetables & Fruits
Market Load
0%
Parcel Load
LDT 1|13.5< IDT|7.5 < GVW MDT 1| 12 < MDT 2| 19 < MDT 2| 19 < HDT 1| 28.5 < HDT 1| 31 < HDT 2| >40T HDT 2| >40T
GVW ≤ 7.5 T ≤ 12 T |Rigid GVW ≤ 19 T GVW ≤ 28.5 T GVW ≤ 31 T| GVW ≤ 40 T| GTW ≤ 40 T| GVW| Rigid GTW| Tractor -
|Rigid |Rigid |Rigid Tractor - Trailer Rigid Tractor - Trailer Trailer
Source: pManifold Analysis (Primary research Industry expert).
➢ 25% LDTs & 60% IDTs are mostly used for short distance and/or intra-city applications (LPG Cylinders, Parcel Load , Perishables, etc)
➢ 15% MDTs & 10% HDTs are also used for short distance applications (coal & mineral handling, construction material, etc)
➢ 22% MDTs & 5% HDTs are used in long distance applications with regulated loading (petroleum, milk & oil tankers, parcels, etc)
Overloading
Unorganized/ Unorganized & unregulated Unorganized sector Semi-organized
Highly regulated and/or very
unregulated sector with mix density with mix density sector with low
low-density payload
sector payload payload density payload
70%
60%
50%
40%
30%
20%
10%
0%
-10%
➢ As application sector become more organized and regulated, overloading propensity seems to decrease
➢ Overloading also seems to increase with density of payload, as owner seek to maximize load-body (volume) utilization
Vehicle Utilization (ton-km/day)
1,829 3,896 7,304 10,574 9,651 10,160 10,474
Parcel Load
13,306 14,256
Market Load
1,966 3,229 3,808 6,933 8,246 8,845 9,477 11,451 Vegetables & Fruits
5,774 8,108 8,687 9,411 Fish
1,360 3,608 4,646 10,443 Petroleum Products
2,415 5,591 5,014 6,678 7,566 7,898 Water
2,957 3,835 3,605 6,555 9,726 10,737 11,004 11,560 Edible Oil
3,809 5,094 11,290 9,354 11,362 9,763 Milk
3,623 5,880 11,760 Coal & Minerals (off-site)
3,881 4,200 8,400 Metals - Finished Products
3,567 4,534 7,683 13,171 LPG Bulkers
3,353 4,309 5,443 12,096 9,072 LPG Cylinders
2,255 4,955 Cement Bulker
2,497 5,003 3,806 5,481 Cement Bags
2,599 3,058 4,657 5,606 8,026 12,039 14,742 On-road Tippers
1,331 2,121 4,053 5,100 6,570 13,721 Steel
LDT 1|3.5< IDT|7.5 < MDT 1|12 < MDT 2|18.5< HDT 1|25 HDT 1| 31 < HDT 2|>40 T HDT 2|>40 T
MDT 2|18.5
GVW ≤ 7.5 T GVW ≤ 12 GVW ≤ 18.5 GVW≤ 31 < GVW ≤ GTW ≤ 40 T| GVW|Rigid GVW|Tractor
< GVW ≤ 25
|Rigid T|Rigid T|Rigid T|TT 40 T|Rigid Tractor - Trailer - Trailer
T|Rigid
Estimated CO2 Share of On-Road Fleet
Refer annexure slide for detailed methodology

➢ Directed Weighted Vehicle Utilization on road fleet share Source: pManifold Analysis (Primary research Industry expert)
Potential Segments for Electrification Prioritization
➢ Identified segments for electrification has potential to save up to 45% of CO2 Source: pManifold Analysis (Primary research Industry expert)
Level-1 Beachhead Model
Wave 1 Wave 2 Wave 3 Wave 4 Wave 5
Oil (Petroleum) Tankers – Rigid

ZE-MDT Water tanker Rigid ZE-MDT
Parcel load Rigid ZE-IDT & Parcel load Rigid ZE-MHDT 1
MDT 1
E- 3 wheelers
LPG Tankers – Rigid ZE_MDT Steel Rigid ZE-HDT 1

LPG Cylinders– Rigid ZE-IDT Coal & Mineral Rigid ZE-MHDT
E-Bus Intra
City MCV
Garbage – Rigid ZE-MDT 1 Milk Tankers – Rigid ZE-MDT Market load Rigid ZE-MDT Finished Products Rigid ZE-HDT
2021 2022 2024 2026 2028 2030

Refer annexure slide for details
ANNEXURE
Overall Statistics
Freight Pricing (Rs per ton per km)

Rate
Wheels GVW Payload Fuel Efficiency (km/litre) Rate (Rs/Ton) Distance travelled/trip
(Rs/Ton/km)
6-W 16T 9 T to 12 T 830 Rs/Ton 150 5.5
10-W 25T 19 T 3.5 to 4 750 Rs/Ton 200 3.8
12-W 35 T 25 T 3.25 to 3.5 750 Rs/Ton 250 3.0
14-W 38 T 30 T 3 to 3.25 750 Rs/Ton 500 3.0
16-W 41T 30 T to 35 T 2.5 1700-1800 Rs/Ton 900 1.9
18-W 55T 40 T 2.25 to 2.5 1700-1800 Rs/Ton 900 1.9
Average Distance per Day
600
Parcel Load + LDT 1|3.5< GVW ≤ 7.5 T |Rigid
Market Load IDT|7.5 < GVW ≤ 12 T|Rigid

500
Vegetables & Fruits MDT 1|12 < GVW ≤ 18.5 T|Rigid
Fish MDT 2|18.5 < GVW ≤ 25 T|Rigid

Average distance per day (km/day)
400 Petroleum Products

MDT 2|18.5 < GVW ≤ 31T|Tractor -
Water Trailer
Edible Oil
HDT 1|25 < GVW ≤ 40 T|Rigid
300
Milk
HDT 1|31 < GVW ≤ 40 T|Tractor -
Coal & Minerals (off-site) Trailer
200 Metals - Finished Products

HDT 2|>40 T GVW|Rigid
LPG Bulkers
LPG Cylinders HDT 2|>40 T GVW|Tractor - Trailer

100
Cement Bulker
Cement Bags
0 Tippers
0 100 200 300 400 500 600 700
Average distance per trip (km/trip) Steel
➢ Average distance per day can vary from 100-400
Methodology for CO2 Emissions Calculations
GHG Calculation for identified
MHDT Application & segment
Formulation of objective Literature Review
Identify approach for GHG Calculation

Secondary Data Primary Data
Fuel consumption standards for heavy- Data collection Stakeholder Consultation from Identified
duty Vehicles in India (Source: ICCT) Applications
1. Fuel consumption (l/100km) 1. On-Road Fleet share of Applications
2. CO2 per litre of Diesel consumption Data Analysis 2. Share of Truck Segments by Applications
3. Distance/trip - One way
4. No. of trips/ day
1. Distance/trip - One way (kms/trip) 5. Avg. Distance / day
Annual vehicle 2. No. of trips/ day 6. Average Speed
Annual CO2 per Utilisation (km/veh/yr) 3. Avg. Distance / day (kms/day) 7. Max GVW
truck - application 4. Vehicle Utilisation (%) 8. Payload Capacity
9. Actual Payload
& segment Fuel consumption 1. Loading Condition
(l/100km) 2. Average Speed (kmpl)
On-Road Fleet share of

Weighted Annual Applications
CO2 - application &
segment Share of Truck Segments
by Applications
Feasible for Electrification
Application Share CO2 Emission

1. Market Load
1. LDT
2. Vegetables & Fruits
2. MDT 1 & 2
3. Parcel Load
3. IDT
4. Coal & Mining (off-site)
123
Not Prone to
Overloading
1. Parcel
2. Petroleum
3. LPG Bulkers
4. Edible Oils
5. Milk
6. LPG Cylinders
http://www.pmanifold.com
Rahul Bagdia Vikrant Vaidya
Managing Director Partner and Lead EV Systems Engineering
+91 95610 94490 +91 99002 43650

rahul.bagdia@pManifold.com vikrant.vaidya@pManifold.com
Ankit Agrawal Sayali Agade Rameshwar Metage

Principal Consultant Engagement Manager Senior Analyst - E-Mobility
+91 84128 98198 +91 8208046650

+91 98811 35712 sayali.agade@pManifold.com rameshwar.metage@pmanifold.com
ankit.agrawal@pManifold.com

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Industry Assessment & Roadmap Outline

for ZE-MHDTs in India

Enabling Smart & Clean Tech Markets

pManifold Copyright 2021© | www.pManifold.com

CRISIL Credit Rating Information Services of India Limited

LFOs Large fleet operators

LPG Liquefied petroleum gas

MFOs Medium fleet operators

Key Complexities of Existing Truck Operations

Surveyed Stakeholder Profile

Analysis of Identified Application

Prioritized segments for Electrification

Level-1 Beachhead model

Overloading Entry Restrictions Driver Shortage Driver Stoppage

POTENTIAL BENEFITS OF ELECTRIFICATION

Intra-city Retail (Short-haul)* Intra-city Retail (Short-haul)

Inter-city Wholesale (Medium-haul)*

Intra-city Retail (Short haul)

• Deteriorate over a short time • Decay if not kept insulated or frozen

Distribution from Bottling plant

Use point Distribution

Coal & Mineral

Inter-city Wholesale & Garbage

• All Major Ports are connected with

Contribution of tractor-trailers (mostly second use) at ports is negligible as an application.

Fleet operators Definitions Fleet operators Definitions

• Henceforth, this classification is used in our study

15% 15% 80%

20% 15.0% 15.0%

10% 5.0% 5.0%

Refer annexure slide for detailed methodology

Oil (Petroleum) Tankers – Rigid

LPG Tankers – Rigid ZE_MDT Steel Rigid ZE-HDT 1

2021 2022 2024 2026 2028 2030

Freight Pricing (Rs per ton per km)

Market Load IDT|7.5 < GVW ≤ 12 T|Rigid

Fish MDT 2|18.5 < GVW ≤ 25 T|Rigid

400 Petroleum Products

200 Metals - Finished Products

LPG Cylinders HDT 2|>40 T GVW|Tractor - Trailer

➢ Average distance per day can vary from 100-400

Identify approach for GHG Calculation

On-Road Fleet share of

Application Share CO2 Emission

+91 95610 94490 +91 99002 43650

Ankit Agrawal Sayali Agade Rameshwar Metage

+91 84128 98198 +91 8208046650

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