Electric Vehicle Startup Financial Solutions

Assignment Taken

Proposal for Fund Raising. Provide a detailed overview of the Financial target, Product Mix & Expansion Plan for Next 5 Year. Prepare an annual operating plan for Financial year 2021-22.

Case Understanding

Case Understanding: The case study is all about scope of renewable energy in India. India’s total market share in vehicles is near about 230 million. Automobile sector is moving towards renewable source of energy that’s why they moved towards electric vehicle rather than petrol or diesel vehicles. India’s market of electric vehicles is still in infant stage and has very good growth opportunities. Government of India is also planning to cover total market of electric vehicle near about 30% by the end of 2030. This target is achieved by launching of electric two wheelers, three wheelers or commercial vehicles. According to the above case, giants players like Tesla, Tata, Toyota and many more took several steps in this direction and they are in growth stage. But Indian market is still in infant stage and it still has many more things to be achieved. Peoples of India are still in dilemma that whether we should adopt the electric vehicles or not because of several reasons which may be: • More habitual of petrol/ diesel vehicles • More innovation are still required in electric vehicles segments • Not having resources like charging station, poor body of vehicle and many more As mentioned above that there is still very high growth potential in Indian market for electric vehicle, so we as an Indian electric vehicle producer have a growth opportunities and we have to develop a business related to electric vehicle because this is the future. Also in the case it is mentioned that we are a team of 8 budding entrepreneurs and we have 40 lakhs of corpus fund and we can raise 60 lakh loans from the bank if needed at the rate of 16% p.a. If our partners wants to work with us at work from office se we have to pay 3000/ workstation and average financial expense for our staff members can be maximum 50000 which is all up to us like we want to pay now or later. One of our team members is also having experience in making electric vehicle prototype as a college project so we have to prepare our plan and will have to choose a perfect business in electric vehicle because electric vehicle is future.

BCS Solution Summary

Our Company has focused on Electric Vehicle Business of Three wheelers as there is very less competitors and huge growth opportunities and have enclosed all the information regarding the financials of the company that how company will grow and expand in certain years.

Solution

Proposal for Fund Raising

 

Our Project

 

According to the case study which is based on the renewable energy and electric vehicles. Our Team Arsenal has decides to focus our business on the three wheeler Electric Vehicles as there are very less competitors and huge growth opportunity due to the huge population and increasing GDP and the Per Capita Income of the individuals. Which will directly lead to increase in the purchasing power of the all individuals. So there are huge opportunities regarding the same. As this will lead to requirement of huge investment for the same purpose.

Through growing and developing of the Indian Economy our Startup will lead to huge achievement.

 

Importance

 

This will be an alternative to the renewable energy as it is a scarce resources.

Focusing on the future Perspective of India there are huge growth opportunity in the same.

As in the data Electric Vehicle Market have grown up to 4times within few years.

This will also reduce the transportation cost.

Electric Vehicles will be 100 percent Eco-friendly as they run on power engines.

Electric Vehicles are safest vehicles to ride.

It also Reduces Noise pollution in the environment.

 

FUND REQUIRED

 

We need a total of approximately fund of INR 1, 10, 00,000 Or USD 11 Million for basic requirement for setting up and running the business. Which will include the followings:-

 

• Initial Investment
• Marketing Expense
• Production Expense
• Human Resource Expense
• Financial Expense
• Charging Station Expenses
• Research and Development Expense
• Patents and Copyrights
• Legal Expenses

 

We also will be required amount for various different types of expenses incurred on day to day and maintenance expenses.

 

OUTCOME

 

We can use your Fund for direct and positive impact on developing and providing best quality and services, to become the market leader in the three wheeler Electric vehicle market.

 

 

 

 

Overview of the Financial target, Product Mix & Expansion Plan for Next 5 Year

 

Financial Targets

 

Increasing the sales volume 10% every year for few initial years.

Reducing the expenses by minimum 1%.

Optimizing the Product and Service Pricings compared to its competitors.

Improves Profit Margins through Customer Satisfaction.

Reduction of cost of capital.

Expansion of the business on the same lines

Increase in the charging station availability.

Managing the Debt Services.

Generating Cash Flow for the business.

 

 

Product Mix

 

Our company will be focusing on basically two products at initial stages and later on will diversify based upon the growth of the company.

 

• Base Product of three wheeler
• Premium Product of three wheeler.

 

Expansion Plan

 

Our company will not focus on Expansion for first two year as company will be focused on providing best services and product to acquire a good market share in the industry and against its competitors.

 

After 2 years company will focus on its Expansion of business as follows:-

 

• Expanding the Product Mix
• Expanding the Market Size.
• Entering to new market.
• Developing new routes and plans for reduction of cost.
• Generating wealth for the stakeholders.
• From Concepts to Execution.
• Paying off debts.
• Offering Technology and Models exchange

 

 

 

 

 

Conclusion

After reading the above case study and reading the solutions from all the departments we all are lend up with a solution that is our primary or first motive is to get stable in the market in the next 2-3 years after that we will be focusing on expansion plan, it can be introduction of new product or entry into new market that is launching our own electric charging station for public. To get stable in to market all our departments will be focusing on giving best services to customers in least cost Firstly we are focusing on 3 wheelers that are E-Autos because currently there is no such producer is available into market for autos. Only producer of E-rickshaws were available that’s why we choose E- autos, so for 1 year our proposal for fund raising is: 1.1 cr which will be divided into: • Initial Investment • Marketing Expense • Production Expense • Human Resource Expense • Financial Expense • Charging Station Expenses • Research and Development Expense • Patents and Copyrights • Legal Expenses Our primary target customer is rickshaw tempos, and pickup drivers and we will promote our products by: 1. WORD OF MOUTH 2. BEST SERVICES BEFORE SALES AND AFTER SALES 3. CUSTOMER CARE 4. INTEGRATED DIGITAL MARKETING 5. ENVIRONMENT FRIENDLY We also made several research in the market like which product is launched so we made several analysis on current situation and also projected demand for electric vehicles particularly in 3 wheelers and by this we all are lend with the final conclusion that demand for three wheelers will definitely goes up in the future and it is great opportunities for us to start our venture. For this our hiring plan is ready and we focused on following things: • Determining the budget for payroll • Identify the man audit resource • Create Job description • Sourcing of a candidate • Screening Process • Interviewing the candidate • References • Offer letter for selection of candidate • Onboarding For training we are focus on: On the Job Training and will focused on Internships, monitoring and team training and for retention we are focusing on lowering hiring cost and will gave non-monetary benefits to our staff members like stake in company and make them a part of decision making and in many more things. By this we will get stable in market and start our venture.

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