Electric Two Wheeler & Its

Manufacturing

Automotive | Jun, 2021

Introduction: The electric two-wheeler set-up appears a lot more promising, in the form
of research, financial acquisitions & investments, that makes the electric vehicle segment
thrilling. Well, there is also the forward push by the government and the references of its
think-tank, NITI Aayog.
Why EV’s? The innovation of internal combustion engine is one of the best creations of
humankind. The traditional vehicles with ICE provide a good performance but are the
major cause for poor efficiency and environment pollution across the country.
Decreasing fuel consumption and carbon emissions are the most important goal among the
present-day plan of government across the globe. Thinking about the future of a country,
an efficient and eco-friendly electric two-wheeler must be designed and manufactured.
Impact of COVID-19 on Electric Two-wheeler market: Since the onset of pandemic,
leading authorities-imposed lockdown restrictions and released a set of precautionary
guidelines. Manufacturing units were temporarily shut down and disruption in supply
chain was observed. Workers moved down to their native area which created shortage of
workforce. The automotive industry including electric two wheeler market faced a setback
and post COVID-19, electric two wheeler market is expected to pick up the pace
eventually.

What is the need of Electric and Hybrid Two Wheelers?

All existing two wheelers that are in the market cause pollution and their fuel cost is also
increasing day by day. To compensate the changing fuel cost and curb down the high
pollution levels, a good remedy is needed.
Zero tailpipe emission technologies have long been held up as the last solution to
transportation-related pollution problems. Electric two wheelers have been offered for
several decades. Electric two wheelers, with their zero tailpipe emissions, can significantly
improve urban air quality.
Working Principle
The working starts with a battery connection. The battery consists of two terminals one is
positive and another one is the negative terminal. The positive terminal is linked to the
stator body of the motor on the other hand, the negative terminal is linked to the edge of
the vehicle.

The battery and the motor are connected into series. The wire connections were made for
the flow of electrons starting with one section then onto the next part. At the point when
the engine empowers through the current, the stator field coil gets magnetized and induces
the rotor shaft to rotate in the counter clockwise direction. Towards the finish of the engine
shaft significant conditions were made for the seating of clutch assembly. Clutch is a
power transmission gadget, which offers drive to the back wheel. The Clutch get together
is placed with the rotor shaft through needle orientation. On the other end of the rotor shaft
an alternator is settled for the reviving framework, as it is an electrical gadget which
changes over the rotational power into the electromotive power. This alternator is
connected to revive the battery while the vehicle is in movement. This course of action is
done through V-belt pulley.
The current flows from the battery with a guide of control framework to the stator body.
This current makes the field coil temporarily magnetized with the goal that the rotor shaft
tends to pivot in its virtual speed. As there is a V-belt drive between the pedal shaft and
the grasp gathering, the movement of the vehicle is sufficiently attained.
The speed in the pedal shaft is constantly lessened with the utilization of sprockets. Here
the speed decrease is in the proportion of 1:4. This game plan lessens the speed of the
engine repeatedly. To the correct side of the vehicle there lies a chain drive for the pedal
shaft. A free wheel is mounted on the back wheel to limit the turn of the pedal under
running condition.

What are the principal parts of electric two wheelers framework?

Basically, a two-wheeler gets its electricity from two sources – a battery and an
alternator. The function of the battery is to store charge, it maintains a stated voltage
level and keeps the electrical system working when the engine is switched off.
On the other hand, the alternator, produces electricity when the engine is switched on. It
provides electricity power supply to numerous electrical devices and charges the battery
on the go. Let’s go in little detail of the two:

BATTERY
A 12-volt two wheeler battery is a six-cell unit and is made of a plastic having a set of positive and
negative plates occupied in an electrolyte. When fully charged each cell has a voltage of around
2.1 volts, which leads to a combined voltage of around 12.6 volts. The main function of the
battery is to deliver Direct Current to the vehicles electronics when the engine is turned off.
Moreover, the battery also provides the current to crank up the engine.

Obviously, lithium ion batteries of some kind would be the great enabler. Lithium is a now
entering the market, they are still very costly and something of a question mark. Traditional
lithium cells, as utilized in PCs, have a warm runaway potential - meaning they tend to burst into
flames, now and again like a Roman light. New materials and sciences considering lithium are
endeavouring to address the wellbeing issue. Moreover, the prices of the lithium ion batteries
have come down and the battery manufacturers are claiming no fire problems.
 Battery Upgradation

ALTERNATOR
The function of the alternator is to generate electricity when the
engine gets started. The alternator uses the engine’s crankshaft to
turn the magnets and produce electricity. It produces alternating
current (AC) which needs to be converted to direct current which
is attained over a regulator which not only converts AC to DC but
also regulates the amount of current that is sent to all the
electronics present.

WIRING HARNESS
The current produced on a two wheeler is channelized through a wiring harness. It plays an
essential role in connecting various electrical and electronic components on a two-wheeler.
The wiring harness is a set of wires, terminals and connectors, designed for a two wheeler
model to supply electric power.

CONTROLLERS
There are mainly two types of controllers, one is brushed, and another is brushless.
According to the motor in use the function of the controller also varies. Because of high
efficiency, less cost and durability, the brushless motors are popular nowadays, whereas
brushed motors because of less complex controller mechanism, is still in use fairly.

Let’s have a look that how these two wheelers are produced/manufactured?
Manufacturing Unit Size: The size of the unit totally depends upon the volume of
business we need to do, the quantum of assets we have available to us, and the turnover
target we intend to accomplish.
For an instance:

Hero Electric is considering over setting up multiple assembly plants to meet its target of
increasing sales by ten times over the next five years, including exports. The company currently
has a production capacity of 75,000 units per annum at its Ludhiana plant.

Production Line:

In the manufacturing unit parts like Handle bar, Frame, Fork, Swing arm, Carriers, Centre
and side stands are being manufactured.
The parts after manufacturing are pre-treated in the plant to increase their life. At the
stages the product inspection is done. The manufacturing plant should have an in-house
paint shop facility to paint plastic parts. The electric two wheeler assembly should be made
up with modern manufacturing concepts backed by stringent quality system.
 In the manufacturing unit, the vehicles pass through several tests like:

Reliability Test: The electric two wheelers parts/components are

being tested in the Lab for reliability test. The manufacturing plant
should have reliability testing facilities like life test for all
electrical components, endurance test for tyre, fatigue test for
handlebar, water dip test for motors, salt spray testing for steel
parts, brake wire testing, battery testing, UV/weather test for
plastic painted parts and brake shoe performance testing.
Product Testing: On a dynamometer testing machine, the two
wheeler electric vehicles are tested in-house on the parameters of
electrical performance. In addition, 100% Electric two wheelers
are tested on a specially developed E-BIKE TEST TRACK,
constructed for uneven bumps, rain showers, bad road conditions,
water logging on roads and steep gradients on flyovers.
A world class manufacturing base with a focused quality in wording of scale, quality, cost
and technology for electric two wheeler and their basic segments will be an absolute
necessity to accomplish the stated goal of hundred percent electric regime. The electric
two wheeler industry in India i.e. the automobile and automobile component
manufacturers will have the capability and the commitment to achieve this.

As per TechSci Research, “Indonesia Electric Two Wheeler Market, By Vehicle Type
(Electric Motorcycle and Electric Scooters/Mopeds), By Battery Capacity (<25 Ah
and >25 Ah), By Battery Type (Lead Acid and Li-ion), Competition, Forecast &
Opportunities, 2025”, Indonesia electric two wheeler market is expected to grow around
20.96% until 2025 owing to rise in domestic manufacturing of electric scooters and
increasing awareness about the harmful effects of greenhouse gases. Based on vehicle
type, market can be divided into electric motorcycle and electric scooters/mopeds. The
electric scooters/mopeds segment is anticipated to account for major market share due to
ease and convenience of using scooters along with rise in number of female drivers.

What all you require in the setting up your electric two wheelers manufacturing unit?
Before setting a manufacturing plant, an OEM (Original Equipment Manufacturer) may be
defined as Proprietor, Private/ Public Company or Partnership Firm who are
manufacturing electric two wheelers shall have following:

 Trade License
 GST registration
 PAN Card
 TIN No.
 Company Registration Certificate
 Testing Centre Certification in satisfaction of VPQC and FAME-India Guidelines for each
model of vehicles separately.
 Each OEM can begin offer of electric two wheelers after enlistment with National
Automotive Board which, states that specific vehicle is qualified for get advantage under
the demand incentive under FAME India Scheme. It is to be noted that, only those electric
two wheelers, which are manufactured in India, will be permitted for the demand incentive
scheme.
Total Expenditure: The automotive industry functions in a very competitive market
which requires monitoring product costs, refining the product quality and shortening the
development time. The cost of labour is one of main elements in effective auto making.
But the role of labour cost in the overall picture is often given far greater attention than
warranted. Growing technological advancements, new production methods and
productivity gains, automakers now use just 29 hours of direct production labour to build
the average vehicle.
Looking at the average price of electric two wheeler we see that:

 Raw materials and purchased auto parts account for around 57% of the price
 Engineering, research & development and Overheads account for around 16%
 Advertising costs average INR 8000 for each vehicle sold
 Dealership mark-ups average INR 10,000 per vehicle

Let’s discuss about the business model canvas for Electric Two Wheelers:

Key Activities
For any vehicle manufacturing company, the first stage is designing, manufacturing and
delivering a product to the customers. These includes research and development,
production, inventory, marketing, sales and customer support services.
Key partnerships
To guarantee reliable supplies of components it is important to maintain a healthy buyer-
supplier relationship. To benefit from economy of scale most activities are planned to be
outsourced. At first stage, everything that is not related to product development and
marketing, e.g. web-development, law and accountant services is planned to be
outsourced.
Key Resources
To develop and produce the electric two wheeler the manufacturing company requires both
physical and human resources.
For R&D, tests, manufacturing, final assemblies and inventory the company requires a
workshop with enough equipment. Marketing, support & sales services require an office
space. Experts in electrical and hardware web-developers, engineering, designers,
customer support, lawyers and accountants comprise a company’s team. The key rational
property is a brand, though company plans to patent its core business ideas.
Value proposition
Electric two wheelers are high-tech solution for short-distance travels. The main product
idea is to add stress-free riding experience without sacrificing on design, ease of use and
price. Hence value proposition is great design and fair price.
Cost Structure
Marketing and product development are key company’s activities, hence generate most of
business costs. Fixed costs include salaries, rents, patents and manufacturing facilities
whereas the variable costs very proportionally to the number of items produced.
Customer Relationship
There should be proper website or a platform support for the customer those may have a
product related questions so that they can receive a personal assistance via the company’s
web services.

Breakeven Analysis for the First Year:

Breakeven Analysis will tell how much the manufacturing company need to sell in a
year just to cover all the costs.

Let’s take an example to understand the basis of achieving the breakeven point. Suppose the
annual fixed cost to deliver a two wheeler is INR 998000 and the average margin per vehicle is
INR 96,880. With a simple calculation, after selling 10.3 vehicles the company can achieve its
breakeven point. But for the first year, the start up cost will also include, so after adding that cost
also, lets assume that the start up cost is around INR 3,89,200 therefore, with 14.3 vehicles the
company can achieve its first year breakup.

Some of the Cell Design, Development & Manufacturing Companies are:

AESC-
Contact Details: 5927 Balfour Court,
Suite 213
Carlsbad, CA 92008
Main: 760.931.2641
mkruse@aesc-inc.com
 BYD-
Contact Details: No.3009, BYD Road, Pingshan,
Shenzhen, 518118, P.R.China
Tel: +86-755-89888888
Fax: +86-755-84202222
Http://www.byd.com.cn

LG Chem-
Contact Details: LG Twin Towers 20,
Yeouido-dong
Yeongdeungpo-gu
Seoul, 150-721, KOREA

Panasonic-
Contact Details: 1006, Oaza Kadoma
Kadoma-shi, Osaka 571-8501, Japan
Tel. +81-6-6908-1121

Samsung-
Contact Details: Samsung GEC
26, Sangil-ro 6-gil
Gangdong-gu
Seoul, Korea
Top Players in Electric Two Wheelers in Indian Market:

Advantages of Electric Two Wheelers:

 No pollution & No fuel residue

 Electric vehicles are very cheap. So common people can afford to purchase it.
 Easy starting
 No driving license required for two wheelers like mopeds
 No registration with RTO required for moped type electric vehicles
 Less wear & tear because no reciprocating parts
 Lubrication is not necessary

Limitations of Electric Two Wheelers

 It should be charged periodically
 Not fit for long travel
 Not applicable for heavy loads until suitable power supply & driving unit

TechSci Research’s India Electric Two Wheeler Market Analysis:

As per TechSci Research, “India Electric Two-Wheeler Market By Vehicle Type (Electric Scooter
and Electric Motorcycle), By Voltage Capacity (48-59V, 60-72V, 73-96V & Above 96V), By
Battery Type, By Motor Placement, Competition, Forecast and Opportunities, FY 2026F”, India
electric two wheeler market is projected to grow at CAGR of over 25% until FY2026 on account of
increasing concerns related to vehicular emission and launch of schemes such as FAME, among
others. Based on battery type, Lead Acid battery has been dominating the market and the
segment will continue to dominate the market during the forecast period as well. However, the
share of Li-ion battery is expected to rise at a swift pace owing to their high energy density, lower
power loss and government launch of FAME II policy, which supports the use of Lithium-Ion
battery in electric two-wheeler.