July2018

Suits_IITR- Round 1: Preliminary Case

Vadada Kalyan Kumar
Yash Shinde
Erickshaw market is driven by size, cost and technology

Size

Market Competitors
Regulations
Govt
Subsidy

•Land,
Fixed Insurance, Inventory,
Erickshaw in property taxes, salaries
India Cost
Labour costs, Raw
Variable
Materials

Battery

Technology Chassis
Product
Pricing Charging Infrastructure

Deprioritized

2
 Feasibility is Limited by Technical Factors
16.2
Market Feasibility
14.0
12.3
• Market Size[1] 10.6
- CAGR (sales)= 19.3% 8.7
- CAGR (Revenue FPS)= 19.31% 6.7
5.8
4.4 5
3.8
Technical feasibility 3.1
2.4

• Charging Infrastructure 2015 2016 2017 2018E 2019E 2020E

- MoP Guidelines in favour of EV charging stations Sales (lacs units/yr)
- NTPC & Power Grid Corporation potential Revenue AFS (10 billion/yr)
investors[2]
• Location:
- Gujarat, Maharashtra, Andhra Pradesh and West
Bengal[3] Financial feasibility
• Skilled Labor
- competent in EV R&D, repair, powertrain,
assembly & control, required
• SP= ₹2.8 L (Based on Competitive Pricing)[4]
• Technology[3]
• Government Subsidy
- Raw Materials: limited reserves of Li, Al, Mn, Co,
Ni in India - FAME Scheme- (Upto ₹61500/- per Unit)[5]
- Minimal Battery size - GST on Li-ion battery reduced from 28% to
18%[6]
- Compatible Powertrain
E: Estimated Sources:
AFS: After FAME scheme [1] Motilal Oswal Group
MoP: Ministry of Power [2] Economic Times
NTPC: National Thermal Power Corporation [3] The Climate group
SP: Selling Price [4] KPMG
[5] Mahindra & Mahindra Treo
[6] National Automotive Board (Department of Heavy Industries)
[7] Ministry of Finance 3
 Price Parity and Distance Range major drivers of Demand

Price Parity Income (₹-Driver’s)[4] Range[5] Commuter

Preferences
Initial Battery Distance: Prefer e-
Cost[1]: rickshaws due to
ICE: economic and
Drivers of Demand

5 L/day (120 environmental

2-2.5 times ICE 2%
km) reasons [6]
counterparts 7%
11%
Operational Li-ion Battery:
Costs[2]: 2 charges/day
(120 km)
ICE- ₹3/km
80%
Li-Ion-₹0.5/km
Max Speed:
8000 <15000
Maintenance ICE:
15000-30000 >30000
Costs[3]: 80 km/h

Li-Ion=0.01 times ICE Li-ion Battery:

25 km/h

ICE: Internal Combustion Engine Sources:

[1] KPMG
[2] ] Mahindra & Mahindra Treo
[3] Economic Times
[4] National Institute of Urban Affairs
[5] Article: Transport Policy, Researchgate
[6] International Conference on Research in Marketing, Researchgate
4