Managerial

Economics
Group 6- Electrical Vehicle

Team Members
Nikhil Khurana(20PT0011)
Prasun Kumar(20PT0013)
Piyush Agarwal(20PT0012)
Urvashi Thapa(20PT0024)
 Electrical Vehicle has been one the technology
which has been adopted by the globe similar to
world changing technologies like Mobile phones,
Internet etc.
Electrical Vehicles are widely accepted in
Introduction 2 wheelers
3 wheelers
Metro trains/monorails
Locomotives/railways
4 wheelers (at intermediate stage)
 According to the National Electric Mobility
Mission Plan 2020 report, the Indian automobile

EV Industry market is ruled by two wheelers, which account for

75% of the total number of vehicles sold in the
country.
Growing in The passenger car segment is dominated by the

Double
small car segment and there is an increased
likelihood for numbers to go up significantly by
2030.
Digit in Overall Auto Industry Growing in Double Digit
Marginal Growth in Passenger Vehicles.
India The transportation sector is one of the major
contributors to CO2 emissions. What is next ???
Usage of
vehicles by
common
man
 Demand Analysis

• Demand is projected to be continuously

increasing in nature irrespective of EV category.
• This increase will be supported by following
factors-
o Continuous decrease in price due to technology
Million vehicles

upgradation, economies of scale, more players

leading to more competition.
o Due to continuous increase in price of fuels-
gasoline and diesel thus people will shift to
substitute-EV
o Increasing awareness and concern regarding climate
change and pollution will lead to people opting for
EV

Source: https://www.iea.org/reports/global-ev-outlook-2019
4 wheelers market
Elasticity of Demand
Price Price
Elastic Demand
Elasticity greater than 1
P1
Inelastic Demand
Elasticity less than 1
P2 P1
P2
D

D
Quantity Quantity
Q1Q 2 Q1 Q2
Present Scenario Future Projection
• Cheap IC engine • Cheaper and lighter batteries and electricity
• Lack of charging Infra • Increasing cost of IC engine fuels and low availability
• Limitation in long distance & high speed usage • Technology advancement
Electric Vehicle demand
From a technology perspective, Consumers are likely to be lured in by the falling
costs of EVs.
From a regulatory perspective, paved the way for incentives and subsidies that will
push manufacturers towards EV.
Ecosystem is very much in favour of such a boom.
Implementation of FAME India scheme.
Electric Vehicle market
Oligopoly business
-As entry into the market is difficult
-Few players
-Differentiated product- product specs, design & cost
Very few manufacturers and retailers in 2W and 4W retail.
High demand in 2W and 3W (e-rickshaws) but average demand in 4W.
Thank You !!