Market Research - Share, Growth Potential, Target Audience, Competitor Analysis, Product sales etc.

Assignment Taken

Market Analysis of Electric Vehicles

Case Understanding

India with the availability of renewable resources and the man power to utilize them, has a huge potential to grow in the EV market. Moreover in a time where Pollution and Environment degradation is taken as a grave concern, we know that around the world, traditional fuel vehicles are one of the main causes of air pollution. Therefore it forces many governing bodies to impose strict emission regulations on car market manufacturers to curb vehicle emissions. Also in recent years, the demand for PHEV, Fuel Cell Electric Vehicle and BEV is increasing considerably among consumers because these vehicles do not use traditional fuels and also the maintenance cost of EVs is also considerably less, which gives it an advantage over traditional fuel based vehicles. Tapping into this opportunity, we as a team of 8 people from different fields have decided to foray into any "Electrical Vehicles"-related industry since you all agree that "this is the future." Being from Marketing background in my team, from the current BSC, I understood that we need to thoroughly analyse the existing market of EV before entering into it. We are at initial stage as a startup and there are already big players in the sector, we need to know • Who the Key players are in the EV market • Evaluating the product features and pricing strategy • Understanding the consumer perception, needs and demands • Analysing the target segment of customers based on different parameters from their gender type, age, income distribution etc. • What or Who the market drivers, and growth drivers in the sector • The growth rate of EV and increase in the sales • What trends have been followed and which of them proved to be lucrative so that we can incorporate them into our product. • We need to know the market share of existing companies so as to evaluate our potential share or sale. • As startup we need to be sure on the judgement of the future growth prospects and • What our key focus area should be in different stages of business, for which we can analyse the growth of EV market since its inception. • To utilise our resources and make investment in the right areas, we need to plan for the opportunities that we can convert Thus through this market analysis, I aim to understand the ground market reality, statistics, and opportunities we can tap into.

BCS Solution Summary

Market Overview : The Indian Electric Vehicle Market was worth USD 5 billion in 2020, and it is predicted to grow to USD 47 billion by 2026, with a CAGR of more than 44% over the forecast period (2021-2026). The COVID-19 epidemic has had an influence on the Indian electric vehicle market, causing supply chain disruptions and the closure of manufacturing units as a result of ongoing lockdowns and travel restrictions across the country. In India, however, the electric vehicle (EV) sector is still in its infancy. Due to several government programmes and policies, it is predicted to expand at a considerably quicker rate during the forecast period. To lower their carbon footprint, e-commerce companies (such as Amazon) are starting programmes to deploy e-Mobility for last-mile delivery. India is experimenting with e-Mobility for public transportation, and electric intercity buses have been deployed in several major cities. Furthermore, state governments are actively involved in the implementation of legislation that encourage the use of electric vehicles. As an example, • Kerala wants to have one million electric vehicles on the road by 2022 and 6,000 electric buses in service by 2025. • Telangana wants to attain EV sales objectives of 80 percent 2- and 3-wheelers (motorcycles, scooters, auto-rickshaws), 70 percent commercial automobiles (such as Ola and Uber), 40 percent buses, 30 percent private cars, and 15% electrification of all vehicles by 2025. Moreover, following the launch of the FAME India plan, which aims to transition toward e-mobility in the light of expanding international policy commitments and environmental difficulties, the EV market in India has gained substantial traction. Furthermore, India has the world's largest untapped market, particularly for electric two-wheelers. The automatic route market is likely to gain traction throughout the forecast period due to the fact that 100 percent foreign direct investment is permitted in this sector.

Solution

Market Segmentation :

The Indian Electric Vehicle Market is segmented :  

·       By Vehicle Type, the market is segmented into Passenger Cars, Commercial Vehicles, and Two- and Three-wheelers. 

·       By Power Source Type, the market is segmented into Battery Electric Vehicle, Plug-in Electric Vehicle, and Hybrid Electric Vehicle.

·       By vehicle class, it is bifurcated into mid-priced and luxury class.

·       By region, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, UK, Netherlands, Norway and rest of Europe), Asia-Pacific (China, Japan, Singapore, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). 

Registered EV Sales Trend in India

Electric 2-wheelers and passenger-type electric three-wheelers drove EV registrations in August 2021, accounting for 92 percent of overall registrations for the month. Following these groups are cargo-type electric three-wheelers (5%), e-cars (3%), and so on.

Two Wheelers contributed to 51.5% of the total sales of 28906 EV
E2W Passenger contributed to 39.3% followed by E2W Cargo 5.2% and E Car 3.3% 

Major Players :

Established market companies, on the other hand, are developing new models to acquire a competitive advantage over their competitors. As an example,

• Morris Garages Motor India announced the d ZS EV, India's first electric internet SUV, in January 2020. The vehicle has a 340-kilometer range on a single charge.
• The Euro NCAP crash tests gave the ZS EV vehicle a five-star rating.
• Tata Motors unveiled ZIPTRON, an electric vehicle technology that will power all future Tata electric vehicles, in 2019. This technology consists of a highly efficient permanent magnet AC motor, providing excellent performance on demand. It will also offer a dust and waterproof battery system, which meets the IP67 standards.

List of Major Players :

• TATA Motors Limited
• Mahindra & Mahindra Limited
• MG Motor India
• Olectra Greentech Ltd
• JBM Auto Limited
• Bayerische Motoren Werke Aktiengesellschaft
• BYD Company Limited
• Daimler AG
• Energica Motor Company S. p. A
• Ford Motor Company
• General Motors Company
• Nissan Motor Co., Ltd
• Tesla, Inc
• Toyota Motor Corporation
• Volkswagen AG

Technological Advancements :

Automobile manufacturers are concentrating on the development of improved electric vehicle systems with lower specific emissions and lower costs. Companies have also begun creating shrunk engines for use in vehicles, as smaller engines aid in meeting the forthcoming BHARAT STAGE VI emission standards. This is due to the fact that they emit fewer pollutants than heavier and larger engines. These shrunken tiny engines' compactness and cost-effectiveness add yet another dimension to their utility. As a result, the future development of advanced GDI systems gives a variety of prospects for key players.

Key Trends :

With an increasing need to reduce GHG (greenhouse gas) emissions from cars, the government is pushing the usage of electric vehicles in several states, which is driving up demand for electric buses in India. Factors such as increased domestic manufacturing, growing urbanisation, and more environmental awareness are driving the market.

Recent Developments :

·       Tata Motors announced the new Tata Tigor EV in August 2021, expanding its EV lineup.

·       In comparison to the previous model, the new Tigor EV receives a slew of design improvements and Ziptron technology, ensuring improved performance.

·       Olectra Greentech announced in July 2021 that it has won the bid for 100 electric buses with its sibling business Evey Trans Pvt Ltd.

·       Under the Government of India's FAME-II scheme, a consortium comprising both firms has won the bid to deliver 100 electric buses to a State Transport Corporation (STC) in the country on an OPEX basis for 12 years. The 100 electric buses will be used for intercity transportation.

Using various models of Market Analysis I performed the above research.

Before any kind of strategy or tactical plan can be implemented, it is fundamental to conduct a situational analysis. I did PESTEL analysis to identify the macro (external) forces facing the sector. The letters stand for Political, Economic, Social, Technological, Environmental and Legal. Depending on the sector which is EV sector here. I covered the Political and Legal aspect by mentioning the government schemes and policies to drive the growth of EV. I covered the sales, price strategies, recent development and trends to check for the economic and technological feasibility. In the Market overview I talked about how the shift from traditional vehicle is and the availability of resources is promoting the right environment to manufacture EV. To understand the market segmentations and decide for the target market I used the STP (Segmentation Targeting and Positioning) analysis of the market. To understand the shortcomings or the product preference of the consumer, I did perpetual mapping, which gives the idea of consumer perception and also to target new potential customers. I used the Mckinsey Matrix to check at which stage the sector is at by compairing the Industry attractiveness with the business unit strength.

Government Policies :

• The Ministry of Road Transport and Highways released a notification on 2nd August 2021, exempting Battery operated vehicles (BOV) from the payment of fees for the purpose of issue or renewal of registration certificate.
• Odisha approves its EV PolicyOdisha approved Its own EV policy on 28 August 2021, becoming 10th Indian state to do so. With this policy, Odisha government aims an EV penetration of 20% by 2025

• In addition, during the policy term, the state will provide 100% interest-free loans to state government employees for the purchase of electric vehicles, as well as a 5% interest subsidy for e-buses and cargo carriages. The policy plan also mentions supply-side incentives, charging infrastructure incentives, and the construction of an EV battery recycling eco-system

• Niti Aayog launched Its Electric Vehicle Charging Infrastructure Implementation handbook. The document Is aims to guide Implementing authorities and stakeholders on planning, authorization and execution of EV charging Infrastructure

• Government Policies for different vehicle segments-

  Vehicle Segment	% Cost of Subsidy	Max Incentive per Vehicle (INR)
  2 Wheeler	15	5,000
  3 Wheeler	15	10,000
  4 Wheeler	15	50,000
  Electric Buses	10	20 Lakhs
  Goods Carriages	NA	Purchase incentive of INR 30,000 for first 5000 electric good vehicles

Conclusion

Electric vehicles are promising technologies with respect to the reduction of global vehicular emission. Furthermore, due to firms' focus on manufacturing fuel-efficient and low-cost electric vehicles, growth in demand for fuel-efficient vehicles is a key driver of the market in various nations. In addition, various electronic systems, including as self-driving aid, telematics control, and tyre pressure monitoring system, are presently being added to electric vehicles to give increased vigilance and comfort, boosting market growth. However, the market's expansion is stifled by high manufacturing costs and the short lifespan of electronic components. Electric cars are now being employed in all segments of the vehicle market around the world, owing to rising demand for fuel-efficient technology in automobiles and rigorous vehicular pollution laws and regulations established by various transportation authorities. Furthermore, significant manufacturers such as Toyota Motor Corporation, Volkswagen AG, General Motors, Daimler AG, and others provide a variety of lightweight and more fuel-efficient electric vehicles in two-wheelers and passenger automobiles. The expansion of the electric vehicle market is aided by factors such as rising demand for fuel-efficient, high-performance, and low-emission vehicles, as well as strict government emission restrictions and regulations. Furthermore, obstacles like as high production costs, low fuel economy, and serviceability are expected to stymie the electric vehicle market's growth. However, during the projection period, factors such as technical developments and proactive government initiatives would support the growth of the electric vehicle market.

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