Electric Vehicle Market Outlook Report 2020 - Sample

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Contents Scope Of The Report

Executive Summary

Introduction

Indian Automobile Sector: An Overview

The Electric Vehicle Market In India The Market Size Commercial Vs Personal Types Of Electric Vehicles In India

Electric Vehicles: How Is India Buying?

Global Comparisons

The Underlying Problems

Policy Measures and Recommendations

Case Studies Hybrid Vehicle Vs Electric Vehicle Are Electric Vehicles Taking Over The Traditional Automobile Sector?

Target Customers Future Trends In The Electric Vehicle Market The Electric Vehicle Startups Landscape Startup Overview Investment Statistics

Methodology

Categorical Split Electric Vehicle Startups Active Investors

EV In India: The Consumer Side Of The Story

Factors Driving Electric Vehicle Market

Glossary

Bibliography

SCOPE OF THE

Report

The global automotive industry is at the cusp of a paradigm shift from internal combustion engine vehicles to zero-emission vehicles. This is primarily due to the stringent regulatory interventions by governments in response to increasing greenhouse gas emissions and depleting air quality worldwide. India, too, is actively exploring cost-effective and viable solutions to address poor air quality in several of its cities. India, which meets more than 80% of its oil demand through imports is also focussing on reducing its excessive dependence on oil imports. The country has set a goal of a significant shift to an all-electric public fleet by 2030, necessitating attention and action by players across sectors including automobiles, power and utilities, and oil and gas.

Given the scale of the Indian automotive market, any significant proportion of vehicle electrification is likely to present a multi-billion dollar opportunity, one that market players across sectors will find difficult to ignore as they risk losing out to competitors.

The report aims to cover: Electric vehicle market size: Now and future Market opportunities being created to cater to the Indian electric vehicle market Impact on climate due to electrification of automobiles in India Funding scenario in Indian electric vehicle market Top electric vehicle startups in India How investors perceive the Indian electric vehicle market Top investors betting on Indian electric vehicle startups Central and state government policies Electric vehicle adoption: What India can learn from the US and China

Electric Vehicle Market Outlook Report, 2020

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70%

4th

India is the 4th largest auto market

6.96%

Electric vehicles are projected to have market shares of 70% and 20% in the commercial vehicle and two-wheeler segments, respectively by 2030

$20 Bn Share of EV in commercial electric vehicles by 2030

CAGR of Indian automobile production between FY13 to FY19

167

30%

Active investors in electric vehicles startup ecosystem of India

Penetration of EVs in automobiles sales, target of Indian government by 2030

28 Mn

$601Mn Funding secured by Indian electric vehicle startups across 77 funding deals between 2014 and 2019

Indian electric vehicle market is expected to touch 28 Mn units by 2030

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Electric Vehicle Market Outlook Report, 2020

37%

By making passenger mobility shared, electric and connected, India can bring down its demand for transportation energy by 64% and reduce related carbon emissions by 37% till 2030

0.5%

Currently, India holds a share of less than 0.5% in the global electric vehicle market; China holds a leading position with a 33% share

350

India has around 350 public electric vehicle chargers and 57,000 petrol pumps as of 2019 (China had more than 200,000 charging points by 2016)

100 TWh If 80% of Indian population adopts electric vehicles, the total power demand could touch 100 TWh or about 5% of the country’s total electricity by 2030

INTRODUCTION To The Report

Electric vehicles (EVs) have witnessed an unprecedented

The two wheelers segment dominates the market in

global interest, emerging as one of the most promising

terms of volume owing to growing middle class and young

alternative power train technologies with zero tailpipe

population. Moreover, the growing interest of two-wheeler

emissions and long-term economic viability.

manufacturers in the rural markets further boosted the sector.

India, too, is actively considering electric vehicles to reduce its excessive dependence on oil imports and curb pollution

India is also a prominent auto exporter and has strong

levels. In addition, the country is also looking at electric

export growth expectations in the near future. Automobile

vehicles as a stepping stone in designing an intelligent

exports grew 14.5% during FY19 and are expected to

transport infrastructure. Startups and corporations alike

clock a CAGR of 3.05% between 2016 and 2026. Also,

have started making pilots with Ola Electric, a manufacturer

several initiatives taken by Government of India and major

of electric vehicles and batteries, emerging as a unicorn in

automobile players are expected to make the country a

2019.

leader in the two-wheeler and four-wheeler segments globally by 2020.

Though still in nascent stages in India, electrification of mobility is one of the largest segments within the automobile industry globally. India’s auto industry became the fourth largest in the world with sales increasing 9.5% to 4.02 Mn units in 2017 (excluding two wheelers) and emerged as the seventh largest manufacturer of commercial vehicles the next year.

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Indian Automobile Sector: An Overview

From the first car plied on Indian roads in 1897 to Jamshedji Tata becoming first Indian to own a car in 1901, Indian automobile sector, today, has grown to become the largest automotive market in the world. It was in 1942, that Hindustan Motors manufactured first automobile in India.

However, the Indian automobile sector formally came into being in 1952 when the government appointed its first tariff commission in a bid to indigenise the industry. In the same year, India was introduced to passenger cars thanks to manufacturers such as Hindustan Motors, Premier Automobiles and Standard Motors.

India was an importer of automobiles

1930 1940

Tremendous trade restrictions could not boost the automobile unit

The Indian automobile industry started its own manufacturing unit

1950-60 The market was largely dominated by 1960-80

Hindustan Motors, with Ambassador model

Maruti came into the competition and swept the market

1983 The Government of India started

1984-92

promoting the automobile industry, Delhi Auto Expo was established

The year of Liberalization and opening up of the FDI

1992 1996

Almost all major car companies expanded their presence in India by

The major of Maruti Suzuki swept the market with 60% market share

2000

establishing manufacturing units India emerged as the 4th largest

2009

exporter of passenger cars after Japan, South Korea and Thailand

India become the 6th largest car manufacturer in the world.

Today, India is Asia’s 2nd largest

2011

two-wheeler manufacturer

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Government Policies To Boost EV Charging Infrastructure

2017 In 2017, transport minister Nitin Gadkari had made a statement showing intent for India to move to 100% electric cars by 2030. In 2018, the government diluted its plans for electric passenger cars from 100% to 30%

2018

FEBRUARY

APRIL

Ministry of Power said that both Japanese and European standards for electric vehicle charging infrastructure will be adopted in India

FEBRUARY

JANUARY

Electric Vehicle Market Outlook Report, 2020

2019

10

The second phase of the FAME scheme gets delayed by six months. The delay is due to the lack of consensus among stakeholders within the government on the allocation of funds

DECEMBER

Central government increased the outlay for the first phase of Faster Adoption & Manufacturing of Hybrid and Electric vehicles (FAME) scheme to $126.74 Mn (INR 895 Cr)

The Goods and Services Tax (GST) council lowers rate on EVs from 12% to 5% and on electric chargers from 18% to 5%

MARCH

Individuals will be allowed to set up public EV charging stations without applying for licences

NOVEMBER

JULY

Phase I of the FAME scheme is extended for six months until September 30, 2017, with a slight modification

NOVEMBER

Ministry of Power directed that no separate licence will be needed for setting up EV charging stations

Ministry of Housing and Urban Affairs directed that residential and commercial buildings are to allot about 20% of the parking space for EV charging infrastructure

JULY

The Union Cabinet clears the FAME II scheme for promoting electric vehicles

AUGUST The government softens its stance on the timeframe for the transition to EVs. Under the revised plan, highly-polluted urban cities are to be targeted first

The Electric Vehicle Market In India

The Electric Vehicle Startup Landscape

$601 Mn+

Raised in 77 funding deals

Hero MotoCorp and TVS Motor Company

$2 Mn 167

Top investors in EV startups

Median funding amount in 2019 for EV startups

Active investors betting on Indian EV startups

OLA Electric

India’s top funded EV startup

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EV In India: The Consumer Side

Factors Driving India’s Electric Vehicle Market

Climate Change

Pakistan

India

Bay of Bengal Arabian Sea

Absolute maximum temperature (oF) 40

50

60

70

80

90

100

110

120

Of all the most polluting nations – US, China, Russia, Japan and the EU block – only India’s carbon emissions are rising: it rose almost 5% in 2016. No one questions India’s right to develop, or the fact that its current emissions per person are tiny.

But when building the new India for its 1.3 Bn people, whether it relies on coal and oil or clean, green energy will be a major factor in whether global warming can be tamed.

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Electric Vehicles: How Is India Buying?

While the government is pushing the rapid adoption of electric vehicles and incentivising industries through its policies and subsidies, the sales are still sluggish compared to other markets in the world. This is because of a gap in how consumers perceive electric vehicles compared to their conventional counterparts.

Major factors behind slow penetration of electric vehicles: A high price, which is around 2-2.5 times more than a comparable conventional vehicle Range per charge To offer a higher range, a higher battery capacity is needed in the vehicle which leads to an increase in the vehicle’s price and increases the price gap

On the other hand, lack of awareness on the advantages of electric vehicles is a deterrent.

Electric vehicles offer a significant advantage on operating cost (running cost plus maintenance cost) which could be as low as one-fourth of that of a conventional vehicle.

In comparison to personal vehicles, commercial vehicles such as taxis, buses and three-wheelers run 4-5 times longer distances every day. Therefore, for such high-mileage vehicles, savings on operating cost will pay back the initial high purchase price much faster compared to low mileage vehicles.

ICE Vs EV Vehicle

ICE Vehicle

Range

~300 miles per refuel (~480 km)

5 minutes Time

Electric Vehicle

~100 miles per Charge (~160 km)

35-40 minutes (Fast) 8 hours (Slow)

Source: SIAM

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Global Comparisons

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The Underlying Problems

Policy Measures And Recommendations

Indian States With An EV Policy Along with the central government, many state governments have also started developing policies on electric vehicles and charging infrastructure. These states are looking to take advantage of the opportunities presented by the upcoming transition to electric vehicles. Ten states have already declared electric vehicle policies.

Indian States Which Have Declared An EV Policy 12 out of the total 37 states and UTs have declared an EV policy

Punjab Uttarakhand

Delhi

Uttar Pradesh Bihar

Madhya Pradesh

Maharashtra

Telangana

Karnataka

Andhra Pradesh

Tamil Nadu Kerala

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Case Studies

Future Trends In The Electric Vehicle Market

Methodology This report presents the study of datasets related to electric vehicles companies (which means any entity which specialises in production or distribution of electric vehicles along with entities which act as an enabler to the ecosystem), the datasets are collected from both primary and secondary sources. The market size is calculated using the total addressable market (TAM) theory based on the number of electric vehicles estimated by Niti Aayog.

The investment activity recorded in the report for the year 2019 is dated from 1st January to 26th December. The default base year for calculating growth rate (CAGR%) is 2015, unless mentioned otherwise. The segregation of funding stages in this report is done on the following basis— seed stage (before pre series A), bridge (transition funding rounds like Pre series A,B C), Growth Stage (Series A and B) and Late Stage (Series C and beyond).

The median is calculated using quartile two of the data set. The future trends to look out for in 2019 is based on the problems these technologies are capable of solving in context of the electric vehicle adoption in the country. We arrived at this list by considering the social and economic problems these technologies will be able to solve better than their contemporaries. The top sectors and startup hubs are based on the number of deal counts poured in the respective sector/hub between 2014 to 2019.

Our definition of tier 1 cities include— Delhi NCR, Bengaluru, Mumbai, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad.

Whereas the “top three startup hubs” in the report is referred to Bengaluru, Delhi NCR and Mumbai, derived from their dominance in overall startup investment activity since 2014.

The customer side analysis in the report is done by our external data partner, Cooltrack using the public discussion data related to relevant topics on social media and public forums.

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Electric Vehicle Market Outlook Report, 2020

Glossary PFCE Private Final Consumption Expenditure

EV Companies

Seed Stage

Any entity which specialises in production or distribution of electric vehicles along with entities which act as an enabler to the ecosystem

Upto seed funding round

Delhi NCR

Any transitional funding rounds

Delhi and its adjoining areas like Noida, Gurugram, Faridabad, etc

Growth Stage

Unicorn A unicorn is a startup valued at over $1 Bn

Soonicorns

Bridge Stage

Series A and B funding rounds

Late Stage Series C and beyond funding rounds

Startups that have a high chance of joining the unicorn club

VC

Average Ticket Size

Venture Capital

Funding amount/disclosed number of deals

YoY Year-on-Year

TAM Total Addressable Market

CO2 Carbon dioxide

2W Two wheeler

4W Four wheeler

EV Electric vehicle

kW Kilowatt

$XXK XX Thousand USD

$XX Mn XX Million USD

$XX Bn XX Billion USD

FAME Faster Adoption and Manufacturing of Electric Vehicles

NEMMP National Electric Mobility Mission Plan

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Electric Vehicle Market Outlook Report, 2020

https://cleantechnica.com/2019/07/28/lithium-ion-battery-manufacturing-heating-up-in-india/ https://www.carbonbrief.org/the-carbon-brief-profile-india https://www.theguardian.com/environment/2017/nov/06/how-indias-battle-with-climate-change-could-determine-all-ofour-fates https://www.theclimategroup.org/news/clean-makeover-india-s-transportation-systems-reasons-optimism https://www.ey.com/Publication/vwLUAssets/ey-electrifying-india-building-blocks-for-a-sustainable-ev-ecosystem/%24File/ ey-electrifying-india-building-blocks-for-a-sustainable-ev-ecosystem.pdf https://qz.com/india/1703720/how-to-take-india-towards-an-electric-vehicles-future/ https://thenextweb.com/in/2019/06/07/indias-wants-to-make-40-cabs-electric-by-2026-to-meet-climate-change-goals/ https://tradingeconomics.com/india/imports https://ourworldindata.org/fossil-fuels https://www.iisd.org/sites/default/files/publications/india-energy-transition-subsidies-petrol-diesel-electric-vehicles.pdf https://www.carbonbrief.org/analysis-indias-co2-emissions-growth-poised-to-slow-sharply-in-2019 https://www.thehindubusinessline.com/specials/india-file/interactive-india-vs-china-the-ev-dashboard/article28760479.ece# https://www.bloomberg.com/opinion/articles/2019-09-20/electric-vehicle-market-so-far-belongs-to-china https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/expanding-electric-vehicle-adoption-despiteearly-growing-pains https://www.transportpolicy.net/wp-content/uploads/2019/11/Bihar_Draft_EV_Policy.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Andhra_Pradesh_EV_Policy_20180608.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Karnataka_EV_Policy_20170925.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Maharashtra_EV_Policy_20180214.pdf https://www.transportpolicy.net/wp-content/uploads/2019/11/Madhya_Pradesh_Draft_EV_Policy_20190830.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Delhi_Draft_EV_Policy_20181127.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Tamil_Nadu_EV_Policy_2019.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Telangana_EV_Policy_20170927.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Uttar_Pradesh_Draft_EV_Policy_2018.pdf https://www.ey.com/Publication/vwLUAssets/ey-electrifying-india-building-blocks-for-a-sustainable-ev-ecosystem/%24File/ ey-electrifying-india-building-blocks-for-a-sustainable-ev-ecosystem.pdf https://www.transportpolicy.net/wp-content/uploads/2019/10/Uttarakhand_EV_Policy_20181008.pdf http://www.siam.in/uploads/filemanager/114SIAMWhitePaperonElectricVehicles.pdf https://www.smartcitiesindia.com/SCI-2019-Presenatations/knowledge-paper/Trends-in-Indian-Mobility_MnM.pdf https://qz.com/india/1603051/ola-says-electric-vehicles-need-a-whole-new-indian-power-sector/ https://www.damerowford.com/difference-between-hybrid-and-electric-cars.html https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/what-a-teardown-of-the-latest-electricvehicles-reveals-about-the-future-of-mass-market-evs https://webstore.iea.org/download/direct/2807?filename=global_ev_outlook_2019.pdf https://beeindia.gov.in/sites/default/files/press_releases/2019%20-%20EY%20to%20BEE%20-%20Technical%20study%20 on%20EVs%20%26%20Charging%20Infrastructure.pdf

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EDITED & COMPILED BY Ankan Das Sandeep Singh Soumen Mandal Naga Jayadeep Akula

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Disclaimer The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the information presented in this report is accurate and free from any discrepancies. Ideope Media Pvt Ltd, the parent company of Inc42 Media and Inc42 DataLabs, is not responsible for any inaccuracy in the information presented or for any damages caused by the use of information provided in this report. In case of any discrepancy or errors in the data, you can contact us at editor@inc42.com and we will try our best to update the information in the digital version of the report. We are constantly updating our database of startups. Due to new startups from various domains being updated, previously reported deals and amounts might vary.

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