Shreyansh Dangayach - NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 02 Submission Of TEAM SKRIBBLERS.

1. Proposal for fund raising
The Indianautomotive industryisthe fifthlargestinthe worldandisslatedtobe the thirdlargestby
2030. Cateringtoa vastdomesticmarket,reliance onthe conventionalmodesof fuel intensive
mobilitywill notbe sustainable.Inanefforttoaddressthis,federal policymakersare developinga
mobilityoptionthatis“Shared,Connected,andElectric”andhave projectedan ambitioustargetof
achieving100 percentelectrificationby2030.
By makingthe shifttowardselectricvehicles(EVs),Indiastandstobenefitonmanyfronts:ithas a
relative abundance of renewable energyresourcesandavailabilityof skilledmanpowerinthe
technologyandmanufacturingsectors.
Regardlessof the country’sambitioustargets,India’sEV space isat a nascentstage.However,
lookingatit differently –Indiaoffersthe world’slargestuntappedmarket,especiallyinthe two-
wheelersegment.100 percentforeigndirectinvestmentisallowedinthissectorunderthe
automaticroute.
The federal governmentis alsoprioritizingthe shifttowardscleanmobility,andrecentmovesto
amendthe FasterAdoptionandManufacturingof Hybridand ElectricVehiclesinIndia(FAME) II
scheme tomake electrictwo-wheelersmore affordable,isacase in point.
In addition,multiple production-linkedincentive schemesintendtocreate alocal manufacturing
ecosystemtosupportgoalsaroundgreateradoptionof electricmobilitytransport.Thisissoughtto
be achievedbyincentivizingfreshinvestmentsintodevelopingindigenoussupplychainsforkey
technologies,products,andautocomponents.
E-2W industryinIndiacan be broadlysegmentintothree categories –Low Speed(withtopspeedup
to 25 Km/hr),MediumSpeed(~40Km/hr) and HighSpeed(60+ Km/hr).Most of the marketis today
concentratedinthe lowandmediumspeedcategoriesbecause theyfitwithinthe mass-marketprice
pointsandcompare favourablyonTCO as comparedto the high-speedsegment.
TCO for EVsfor low/mediumspeedscootersis25-40% lowervis-à-visthe entryrange ICE2Ws fora
retail use case (20 Km/day).Onthe otherhand,highspeede-scootersande-motorcycleshave a15-
20% higherTCOas comparedto mid-range (125 CC) ICE 2Ws, ex subsidybenefit.The TCObreakeven
isachievedfora high-speede-2Watabout 40 Km/dayusage.
The commercial use case of e-2Wsmakesbettereconomicsense.Ane-2Woffers10-40% lowerTCO
at 60 Km/dayusage (dependinguponspeedspecs).Today,commercial customersbuymostlypre-
ownedvehicles.A mediumspeede-2Wstill offers a15% lowerTCOthan a pre-ownedICE2W on
account of verylowfuel andmaintenance cost.
In April 2019, Niti Aayog,the federal thinktank,publishedareporttitled“India’sElectricMobility
Transformation”,whichpegsEV salespenetrationinIndiaat 70 percentforcommercial cars,30
percentforprivate cars, 40 percentforbuses,and80 percentfortwo- and three- wheelersby2030.
These targets,if achieved,couldleadtoanetreductionof 14 exajoulesof energyand846 million
tonsof CO2 emissionsoverthe deployedvehicles’lifetime.Electricvehiclessolduntil 2030 can
cumulativelysave 474 milliontonsof oil equivalentovertheirlifetime,worthUS$207.33 billion.
Thiswill helpIndiafulfil itsglobalcommitmentstolowercarbonemissionsandincrease use of
cleanersourcesof energyandtransportationasrequiredbythe NationallyDetermined

2. Contributions(NDCs) underthe UnitedNationsFrameworkConventiononClimate Change (UNFCCC)
and EV30@30.
Policymeasures
Federal policy
Several fiscal andnon-fiscal measureshave beenputinplace tofacilitate the adoptionof electric
mobility.Theyare asfollows:
 National ElectricMobilityMissionPlan 2020 (NEMMP): Itwas launchedin2013 by the
Departmentof HeavyIndustry(DHI) asa roadmapfor the fastermanufacture andadoption
of EVsinIndia.
o FAME Phase I: Aspart of the NEMMP 2020, the FasterAdoptionandManufacturing
of HybridandElectricVehiclesinIndia(FAMEIndia) SchemewasnotifiedinApril
2015, to promote the manufacture of electricandhybridvehicle technology.Ithas
mainlyfocusedonfouraspects – demandcreation,technologyplatform, pilot
projects,andcharginginfrastructure.Fordemandcreation,incentiveshave mainly
beendisbursedinthe formof reducedpurchase prices.
o FAME Phase II: Launchedin2019 for a periodof three years,thisscheme hasan
outlayof US$1.36 billiontobe usedforupfrontincentivesonthe purchase of EVsas
well assupportingthe developmentof charginginfrastructure.FICCIhasasked
for continuationof FAMEII till 2025, alongwithshort-termboosterincentivesto
enhance demand.
o AmendmentstoFAMEPhase II:On June 11, 2021, the Ministryof Heavy
Industry announced furtheramendmentstothe FAME II scheme togive a boostto
EV demandamongconsumers.Underthe revisedpolicy,the subsidyperelectric
two-wheeler(Indian-made),whichislinkedtothe batterysize,hasbeenincreased
to INR15,000 (US$204.60) per Kilowatt-hour(KWh) fromINR10,000 (US$136.40)
KWh.Furthermore,electrictwo-wheelermanufacturerscannow give discountsof
up to 40 percenttoconsumers,whichisa significantraise fromthe previouscapof
20 percent.The eligibilitycriteriaforthese electrictwo-wheelerstoqualifyfor
subsidyunderthe FAMEII scheme include aminimumrange of 80 km on single
charge anda minimumtopspeedof 40 km perhour.These incentivesare expected
to significantlylowerthe purchase price andliftbuyersentiment,creatingaspurin
marketdemand.The amendmentsinthe policyhave beenhailedbyindustry
stakeholderswhoare now expectingthe EV two-wheelerindustrytoclocksalesof
oversix millionunitsby2025. Yet,according to a recent CRISILreport,95 percentof
the e-scootersinIndiaare not eligible forthe FAMEIIincentive scheme,astheyfail
to meetthe eligibilitycriteria.
 Ministryof Power: It has clarifiedthatchargingEVsisconsideredaservice,whichmeans
that operatingEV chargingstationswill notrequire alicense.Ithasalsoissueda policyon
charginginfrastructure toenable fasteradoptionof EVs.
 Ministryof Road Transport and Highways: It has announcedthatbothcommercial aswell
as private battery-operatedvehicleswill be issuedgreenlicense plates.Ithasalsonotified
that all batteryoperated,ethanol-powered,andmethanol-poweredtransportvehicleswill
be exemptedfromthe commercial permitrequirement.

3.  Department of Science and Technology: It has launchedagrand challenge fordeveloping
the IndianStandardsforElectricVehicle ChargingInfrastructure.
 Niti Aayog: The National MissiononTransformative MobilityandBatteryStorage hasbeen
approvedbythe cabinet,andthe inter-ministerial steeringcommittee of the Missionwill be
chairedbythe CEO of Niti Aayog.The Missionaimsto create a PhasedManufacturing
Program (PMP) forfive yearstill 2024, to supportsettinguplarge-scale,export-competitive
integratedbatteriesandcell-manufacturinggigaplantsinIndia,aswell aslocalizing
productionacrossthe entire electricvehicle value chain.
States/unionterritoriespolicy
Over27 statesand UTs have formulatedstrategyplansfortransformingmobilitytoprovide their
citizenswithsafe,inclusive,economic,andcleantransportoptions.Whilesome stateslikeKarnataka
and Tamil Naduhave had a headstart due to preplannedpublicpolicies,targetedinvestor
incentives,aswell assupportinfrastructure,otherstatestoohave draftedpoliciestostimulate
marketdemandandcreate infrastructure.
Many leadingbatteryproducerslike AmaraRajaBatteries,have pickedupthe cue fromtheses
incentivestoorientnew investmentsintogreentechnologies,includinginlithium-ionbatteries.
Respondingtothe opportunitythatIndia’sEV industrypresents,leadingplayerslike OLA Electric
MobilityPvt, AtherEnergy,andMahindraElectricsare rapidlygrowingtheirmarketpresence.
Moreover,certainstateslike KarnatakaandTamil Naduare rollingoutinnovative andtimely
investor-friendlypoliciesbesidesbuildingnecessaryinfrastructure.
Recently,the AmericanelectricvehicleandcleanenergycompanyTeslaInc.markeditsentryinto
Indiabyincorporatingitssubsidiary,TeslaIndiaMotorsandEnergy PvtLtd, inBengaluru.
In February2021, AtherEnergy,India’sfirstintelligence EV manufacturermoveditsUS$86.5 million
factoryfrom Bengaluru(Karnataka) toHosur(Tamil Nadu).AtherEnergy’sfactoryissaidtohave an
annual productioncapacityof 0.11 milliontwo-wheelers.
In March 2021, Ola Electric,the subsidiaryof the unicornIndianride-hailingstart-up,
alsoannounced thatit wouldbe settingupthe world’slargestelectricscooterplantinHosur(which
isa twoand a half-hourdrive fromBengaluru)overthe next12 weeks,ata cost of US$330 million,
and aimingtoproduce 2 millionunitsayear.By 2022, OlaElectricwantsto scale up productionto
pumpout 10 millionvehiclesannuallyor15 percentof the world’se-scooters.
Meanwhile,indicative of the marketinterestforelectrictwo-wheelersinIndia, OlaElectric
reportedlyclockedINR11billion(US$149.26 million) insalesoveratwo-daypurchase window.Ola
Electric’swebsiteallowsscooterstobe reservedandthe nextsaleswindow opensNovember1.The
electricscootersare manufacturedatthe Ola FuturefactorynearKrishnagiriinTamil Nadu.
On September9,2021, GreavesCotton announceditsentryintothe multi-brandelectricvehicle
retail segmentunderthe brandname AutoEVMart.Accordingtoreports,thisplatformwill present
consumerswithawide range of electricvehiclestochoose from–from Ampere Electrictoother
brandsin the EV space.Thus,AutoEVMartwill serve asa marketplace forelectricvehiclesinIndia,
offeringe-two-wheelersande-three-wheelers,amongothers,alongwithEV accessories.Greaves
Cottonenvisionsfirst-of-its-kindmulti-brandretailstoresforcleantechor electricmobilityin
Bengaluru.

4. Recently,SterlingandWilsonPvtLtd(SWPL),India’sleadingengineering,procurement,and
constructioncompanyannounceditsentryintothe electricmobilitysegmentinIndia.Ithassigneda
50-50 jointventure withEnel X,tobe incorporatedonApril 1,2021, to launchand create innovative
charginginfrastructure inIndia.
There have alsobeenpositivedevelopmentsinthe expansionof charginginfrastructure acrossthe
country – stateslike AndhraPradesh,UttarPradesh,Bihar,andTelanganaare settingimpressive
targetsfor the deploymentof publiccharginginfrastructuretoincrease uptake of electricvehiclesin
the country.
The keyreasonswhythese statesare doingbetterthanothersare local fiscal sops,betterlogistics,
an investor-friendlygovernmentpolicy,businessfacilitationthrougheasieraccesstoauthorities,
supplychainconnectivity,andthe availabilityof suitableland.
Karnatakawas the firststate to introduce a comprehensive EV policyandhasemergedasa hotspot
for EV businessesinIndia,bothinEV andEV ancillarymanufacturingaswell asR&Dsegments.Tamil
Naduis alsoleapingforwardata commendable pace,owingtoitssupplyecosystem, largerland
parcel,proximitytoports,andproactive investorsupportthroughadministrativeportals
like Guidance Tamil Nadu.
Nevertheless,whilegrowthinthe EV industryisonan upwardtick,ithas much groundto coverto
be able to realize the government’sambitious2030 target. The COVID-19pandemicnotonlyslowed
the industry’sprogress,butalsodampenedoverallmarketdemand.
Still,marketsentimenthasretainedpositivityinsome segments.InFY2020, EV salesfortwo-
wheelersinIndiaincreasedby21 percent.ForEV buses,the salesforthe same periodincreasedby
50 percent.Incontrast, the marketfor electriccarsremainedgrim, registeringafive percentdecline.
As fortotal EV sales,aftersufferinganinitial setbackin2020, salesappearto be slowlypickingup.In
January2021, 15,910 unitsof EVs were soldinIndia,andout of these,the maximumunitswere sold
inUttar Pradesh,followedbyBiharandDelhi.
Ultimately,the scope of India’sEV marketgrowthrestsonavailabilityof capital fororiginal
equipmentmanufacturers,batterymanufacturers,andcharge pointoperatorsaswell as
improvementstoinfrastructure anddiversifiedoptionsforconsumers.
RealizingIndia’sEV ambitionwill alsorequire anestimatedannual batterycapacityof 158 GWh by
FY 2030, whichprovideshuge investmentopportunitiesforinvestors.Enablingpolicysupport
measuresare a critical needat thisjuncture.
The governmentappearstobe aware of this.It hasbeenrollingoutincentivestoboostmarket
demandinprioritysegmentslike electrictwo-wheelers,andlocalizingproductionof keycomponents
like ACCbatterystorage as well aselectricvehiclesandautocomponentsthroughrespective PLI
schemes.Besides,several Indianstateshave now passedEV policiesintendingtoattractindustry
investmentsandmake EV adoptionmore viable propositionforthe consumermarket.
We intendtoenterthe marketwitha disruptive technologyandvibrantteamthatcan helpour
countryachieve itsgrowthobjectivesandcarbonemissionsgoals.Tosetupthe factoryand
distributionchannel we wouldrequire₹50crore at the onset.Thiswill helpusreachmonthly
capacityof 1,200 units.We will looktoexpandit