Mahindra Electric

Mobility Limited: The

Electric Vehicles
Dilemma
Presented by Group 1

 Dharmajeetsinh Jadeja-14
 Hetanshi Lakhtariya-21
 Samidha Rai-38
 Surya Prakash- 44
 Sriram Sundaram-46
 Viren Joshi-51
 Shardul Sharma-55
Case Facts
● The Indian government wanted to shift the country’s transport fleet to shift to 30% by
2030 and t o control pollution , rise of fuel price , high forex and to become self-
dependent .
● The government had launched the National Electric Mobility Mission Plan (NEMMP)
2020 in 2013 to achieve national fuel security by promoting hybrid and Evs in the
country.
● Mahindra Electric Mobility Limited (MEM) was the one automobile firm that was quite
optimistic about Evs endeavor.
● The CEO of MEM Mahesh Babu firm vision was “to become leading brand in providing
customized electric mobility experiences through cutting edge technology”.
● In September 2018 many macro and micro issues were present in the environment
related to EV.
Mahindra Electric Mobility Limited

Company Acquisition of PLANED TO

INVERST 40
1945 started 2010 REC
2017 BILLION
In 1945 Mahindra Mahindra acquired
major stock in Reva In which 8 billion
was started for new model and
Electric Car
Company half billion for
battery
infrastructure

Passenger
New model
2021 2019 vehicles MEM
To introduce four Pilot program with 2018 ACQUIRED LG
new model ola and uber at CHEMICAL
Delhi Nagpur
Hyderabad To develop lithium
batteries
Investing in R&D
 INDIAN AUTOMOBILE INDUSTRY AND ELECTRIC VEHICLES
MASSIVE
High growth rate TECHNOGOCIAL SHIFT
Assuming a growth rate of 8 per As ICEs and EV engines had very
cent in the PV segment every year, different power trains While a
about 71 million new vehicles conventional ICE vehicle had
were expected to be added 3,000 moveable parts, EVs only
between 2018 and 2030. had 30 such parts.

REDUCTION IN
Low speed EV
COST OF BATTERY
Ninety five percent of EVs 73 % drop in cost of
on Indian roads ware low- battery
speed electric scooters

7 % of India GDP HYBRID CARS

The Indian automobile Apart from EVs and ICEs,
industry was worth $93 there was hybrids. Which
billon in 2018 ran on both battery and lCE

EV technology was still in the evolutionary phase

Government initiative
● The Indian government created Energy Efficiency Services Limited (EESL) in 2010
● It was a joint venture of four national public sector undertakings: NTPC Limited, Power Finance
Corporation Limited, Rural Electrification Corporation Limited, and the Power Grid Corporation of
India Limited.
● EESL's objective was to facilitate energy-efficiency projects that would significantly reduce energy
consumption and costs.
● In December 2017, the Ministry of Heavy Industries and Public Enterprise had sanctioned 4.4 billion
to 11 states to procure 390 electric buses, taxis, and automobiles as a project under the FAME
scheme.
● To enhance the infrastructure for EVs in India, in May 2018 the government proposed setting up Ev
charging stations every 3 kilometre (km) in cities with over a million people and every 50 km on
busy national highways.
● As per the proposal, by 2019 the domestic content in EVs would be increased to a minimum of 50
per cent, which subsequently would be increased to 60 per cent in 2020, and to 70 per cent in 2021.
Major competitors
Tata Motors Limited
● TM was a part of the $100-billion
Tata Group founded in1868.
● TM was operating on three different
levels of electrification.
● TM had created an electric-mobility
division to have special focus on
developing cleaner mobility
solutions for the future
● TM had created an electric-mobility
division to have special focus on
developing cleaner mobility solution.
● While TM would offer the EV, Tata
Power Limited would set up
charging stations.
Maruti Suzuki India Limited Hyundai Motor India Limited
• (HMIL) was a wholly owned
(Suzuki)
subsidiary of Korean automobile
● In April 2018, Suzuki was the parent
manufacturer Hyundai Motor
company's most Successful
Company (HMC).
subsidiary in the world, and at 50.10
• India was the third-biggest market
per cent, it had the largest market
for HMC globally and its share in
share among PVs in India. the company's global revenue was
● Suzuki had also partnered with about 15 %.
Japan's largest carmaker • HMC was developing both battery
● Suzuki, along with Denso Corporation EVs and fuel cell vehicles.
and Toshiba Corporation, had pooled • HMIL had market, but a developed
$180 million in 2017 plant in India for hybrid vehicles for the domestic
producing lithium-ion batteries.
● The company was working with
partners as well as focusing on in-
house capabilities to the put
ecosystem in place for EVs.
● Suzuki was likely to have an EV with a
power output of 25 to 35 kW per hour,
suitable for the compact-car segment
priced below 1million.
Indian consumer’s preferences

India was known . From 14 per cent in

as a small-car FY 2009/10, the
market. percentage share of
SUVs in PV sales had
risen to 30 per cent.

HMIL's Kona Electric SUV TM was designing

would be the company's . .
electric versions of its
first EV in India in 2019. off-roaders H5X and 45X.
Mercedes-Benz was MEM was also working
working on the EQ concept on an electric version of
EV range, based on its GLC
Mahindra's popular
mid-size SUVs
KUV100 model
Concerns
● Electric road transportation was yet to establish in India.
● making affordable electric cars was one of the challenges biggest for auto companies, especially
as vehicle batteries were very expensive, and there was no public charging infrastructure.
● Expert opinion was that the ecosystem to manufacture the battery-management systems, power
electronics and lithium ion batteries required for EVs was not yet available in India.
● need for fast chargers parking spots, and swappable batteries required robust solutions and public-
private partnerships.
● Experts felt that the push for EVs was largely coming from the central government, and there had
been limited policy-level support at the state and municipal levels.
● Beside stressing EV usage, in 2016 the Indian government also decided that the country would leap
from BS4 emission standards to BS 6 emission standards for all of its gasoline- and diesel-driven
vehicles by 2020
● There was danger that an EV-based automobile environment in India would make many of the
casting, forging, and machining sectors unviable, risking about 1.5 million jobs in an already job-
stressed Indian market.
SWOT
STRENGHTS
● Availability of funding for, as MEM is part
of 19 b Mahindra group conglomerate.
● Product development and capacity
expansion(8b) into capacity development
● Partnership with Ford motors for global
distribution and development of EV sedan
● Supplier of components(lithium ion
batteries) for EV, thus reducing
dependence on external supplier.
● Partnership with ola , uber to stimulate
sale of EV cars as cab service provider
Weakness
● High manufacturing costs due to high cost
of lithium batteries (70% cost)
● Lack of partner or subsidiary company for
developing infrastructure and setting u
charging station
● Lack of technology for manufacturing
batteries
● Reduction in revenue upto 40% due to
reduction in sale of engines and power
trains.
● Dependence on fossil fuel for electricity
generation – develop or invest in
renewable energy sources
 Opportunities
● Growing demand of electric vehicles in
Indian market
● Government subsidies and
attractive(fiscal & non fiscal) incentives for
manufacturers of EVs
● Rising import bills due to rising fuel prices
● Growing environmental concerns.
Threats
● Shift from BS4 to BS6 will put pressure on
research budget
● Chinese companies dominating Indian
market
● EV technologies still in evolutionary
phase, future uncertainties related to cost
& infrastructure
● Threat from other competitors such as
TM, Hyundai
Recommendations
● MEML should focus and invest more into two and three wheelers EV segment.
● Investment and production should be focused more on compact cars and utility vehicles.
● Continue with investment into research and development in components of EVs.
● Increase partnership with cab service providers such as ola and uber.
● Acquire more subsidiaries especially technology companies.
● Increase global partners such as Ford motors to increase global outreach
● Joint venture with other companies foraying in EV market to increase outreach and gain from
the technological development.
● Investment into hybrid vehicles on a short-term basis.
● Partnership with public enterprises for setting up of charging stations and developing
infrastructure for the same.
Thank you