Electric Vehicles (EV) are seen as a key future trend in the automotive industry in terms of oil independence. Frost & Sullivan\'s Industry Manager, Vijayendra Rao, will share his views on challenges facing implementation of EVs in APAC, legislative, new business models, infrastructure trends emerging in APAC for implementation of EVs and threat analysis, and recommendations for EV manufacturers and suppliers.

1. Strategic Analysis of APAC Passenger Electric
Vehicles Market: Fad or Reality?
Vijayendra Rao, Industry Manager
Automotive & Transportation
27th May 2009
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2. Focus Points
Challenges and Solutions for EV Implementation
Current Electric Vehicle Market Structure
Product and Technology Roadmap
Scenario Analysis for Electric Vehicles in APAC
Market Breakdown By OEM and Type of Electric Vehicle
Infrastructure and Business Model
Opportunities in EV Market
EV Customer Profile
Conclusions and Recommendations
Existing and Planned Powertrain Topics
Q&A
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3. Challenges and Likely Solutions for EV Implementation – Infrastructure,
Battery Costs, Standardisation are key challenges for EV implementation
Electric Vehicle Market: Challenges and Solutions (APAC), 2008
Better Place has taken
Lack of
initiatives to set up
infrastructu
charging, swapping Mass commercialisation,
re to High costs of
stations in Australia, Standardisation and
introduce batteries and
Japan and likely to Leasing model is likely to
electric Electric
penetrate other APAC solve this issue
vehicles Vehicles
markets.
OEMs and Battery Battery OEMs,
suppliers are technology is Governments are
working not advanced EV Technology is running test fleets
extensively to enough to not proven and to showcase
improve the range promote EVs consumers are consumers that EV
and top speed of with higher wary of buying technology is
EVs. BYD claims range and top Electric Vehicles proven for longer
their EV e6 has speed viability
range of 250
miles.
EV Technology is a
Most OEMs and suppliers medium-long term strategy
Global economic Price of oil at present is
have realised that EVs are rather than short term. In
crisis is likely to put hovering around
likely to be a future viable the coming years, Oil
some of EV projects 50$/barrel that is likely to
option and are not prices are likely to
in the back burner act as barrier for EV
shunning any projects due increase to up to 100-
commercialisation 150$/barrel
to the crisis.
Source: Frost & Sullivan
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4. Current Electric Vehicle Market Structure – Conglomeration of OEMs, Electric
Utilities, Government, Battery Manufacturers required for increased electric
vehicle penetration
Cooperation to simultaneously promote EV use and electricity as a fuel
Integrators to create partnerships with Utilities, OEMs
and Government
Others: e.g. Project
Utilities OEMs
Better Place
Lower fuel
Key Subsidies for
dependency by
Responsibility: EV purchase
expanding the Key
and
Development of use of Responsibility:
investment in
Charging renewable
R&D to Promotion of EV
Infrastructure energy sources
reduce use
Supplies
emissions Development of
infrastructure to
performing
distribute their
batteries
energy
Infrastruct
Charging Station Battery
Government
Manufacturers ure Manufacturers
supplier
Could work to improve charging time and safety
Source: Frost & Sullivan
4

5. Product and Technology Roadmap – OEMs and Suppliers are working
towards increased driving range and lower charging times going forward
Driving Distance/charge-up
to 60 kms Up to 130 kms 200 + kms
Performance
Charge Time – 6 to 8 hrs < 1 hour < 30 minutes
Battery Capacity – up to
16kWh Up to 50 kWh 50 kWh +
Motor Power- Up to 70 kW 70 kW – 140 kW
Slow charging - onboard
Infrastru
Fast charging – mostly off board
cture
Battery Swapping
Products
Source: Frost & Sullivan
Neighbourhood Electric Vehicle
City Electric Vehicle
Range extended Electric Vehicle
2005 2010 2015
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6. Scenario Analysis – Mass commercialisation of electric vehicles is likely to
happen during 2012-2013
250
Unit Shipments (Thousands)
Volumes doubling
Source: Frost & Sullivan
due to early market
entrants
Volumes by Small
OEMs- Identical in
all 3 scenarios
0
2008 2009 2010 2011 2012 2013 2014 2015
Conservative Frost & Sullivan Optimistic
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7. Japan and China to be the biggest markets for Electric Vehicles in APAC
80000
~170K
70000
21%
60000
50000
40000
30000 75%
20000
650
10000
0 4%
Japan China India Korea Australia Others 2015
2008
NEVs CEVs PHEVs Others include Malaysia, Singapore
NEV Neighbourhood Electric Vehicle
CEV City Electric Vehicles
eREV/PHEV Extended Range/ Plug in Hybrid Electric Vehicles
Source: Frost & Sullivan
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8. Infrastructure and Leasing Models in different APAC Regions – Conventional
business model is likely to be successful in APAC except Australia
Country Infrastructure Business Model
With Better Place entering the Australian market and working closely with utility OEMs/ Distributors, Battery
companies and government, Australia is well positioned to provide infrastructure Leasing, Battery+Car Leasing
to electric and plug-in hybrids in the coming years.
OEMs and Government is working on pilot projects to provide infrastructure to OEMs/Distributors, Battery
electric and plug-in hybrids. Better place is also setting up swapping stations for Swapping
long distance driving.
There is no initiative either from government or any external agencies to set up OEMs/ Distributors, Battery
recharging stations in India. However, Hero Group (2-wheeler manufacturer) has Leasing
plans to set up recharging stations in India.
China has a great potential in terms of electric vehicles mainly due to availability OEMs/Distributors
of raw materials, advanced motor technologies, competitive prices. However
there is no major initiative to set up recharging stations in China. There is a need
for government initiatives to drive the growth of EV Market in China.
South Korea is predominantly likely to adopt hybrid vehicles rather than electric OEMs/Distributors
vehicles mainly due to the lack to infrastructure and no major initiative to set up
charging stations in South Korea.
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9. Electric Vehicle market to create opportunities and attractiveness for industries
like telematics, mobile phones, fleet businesses
Potential for businesses to enter
New business opportunities for
EV market with relatively low
Utilities and Innovative financial-
investment; strategise to partner
leasing firms- To be resilient
High with OEMs
before it makes profits
Utilities
Leasing
Potential to generate revenue
Battery Businesses
Rejuvenation Financial
Fleet
Businesses
Medium Coach
Recycling Service/ Builders
Dealership
Telematics
Innovative model but due to
Marketing Insurance
demographics it requires good EV
penetration and customer
Low Mobile Phone utilization- to have high impact if Swap Stations
successful
Low Medium High
Effort required to develop EV business
Source: Frost & Sullivan
: Size of the bubble represents the impact on EV market
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10. EV Customer Profile – Private
OWNERSHIP & MAIN USAGE
• Driving the vehicle to work is his main priority
• Shopping during weekends.
DEMOGRAPHICS MOTIVATING FACTORS
• Male/female falling under the age group of 26-45 • Contribution to environment
yrs • Reduced fuel cost
• Has a university degree • Savings on tax and other Govt subsidies
• Earning between $50K - $100K. • Free from congestion charging
• Resides in Urban Area (Tokyo, Shanghai, Sydney) • Compact and ease in parking
• Flat /semi-detached house residence Male/Female (26-45 yrs)
FEEDBACK ON LEASING BATTERIES SUGGESTIONS ON EV IMPROVEMENT
• Prefer to lease battery than source it directly • Reliability and after-sales service
from manufacturer. • Latest battery to aid in greater distance travelled
• Efforts to dispose and effect on environment • Improved and increased access to charging stations
key reasons • Improved interior designs for greater experience
• Navigation tools to improve access to P-O- I*
NEEDS
• Reliability, price and fuel economy were the most important issues considered while purchasing EV
• Improved charging capability, provision of fast charger kits and maintenance free motors were
features that consumers would consider to boost chances of EV purchase
Source: Frost & Sullivan
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11. Strategic Conclusions and Recommendations – Factors such as Government
support, technology standardisation and infrastructure are likely to make
electric vehicles a long viable solution
OEMs have to push local
governments for
incentives, tax cuts to
promote Electric Vehicles
OEMs, Suppliers, Utility Technology
Companies have to work standardisation is very
closely to promote Electric critical to mass market EV
Vehicles at a faster pace
Recommendations
Global economic downturn
should not hamper OEMs Target Gen Y Customers
market strategy in terms of as they are open to ideas
EVs as EV is termed as in terms of battery
medium-long term leasing, swapping
sustainable solution
Source: Frost & Sullivan
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12. Research Titles Available to Date and Planned:
Each Study is Average of 500 research hours
Already Published
1.Strategic Assessment of European Passenger Electric Vehicles Market - May 2008
2.Strategic Analysis of European Market for Electric Corner Modules - Oct 08
3.Strategic Analysis of Global Market for Fuel Cell Electric - Aug 2008
4.World Hybrid/Electric Vehicle Battery Markets -Jun 2008
5.Strategic Analysis of In Car Green Technologies - Jun 2008
6.Advances in Hybrid Electric Vehicles (Technical Insights)
7.Global Market Analysis of Plug in Hybrid Electric Vehicles Dec 2007
8.European Consumers’ Attitudes & Perceptions Towards Sustainability, Environment
and Alternate Power-trains - Includes section on Electric Vehicles
Research in Progress
1.Strategic Review of New EV Business Models in the Automotive Industry – Q1, 2009
2.Analysis of Electric Vehicles Infrastructure for Automotive Applications in Europe and Revenue Generation Opportunities for
Utilities – Q1, 2009
3.Strategic Analysis of the Fleet Market Opportunity for Electric Vehicles in Europe – Q2, 2009
4.Asia Pacific Market Analysis for Electric Vehicles for Fleets and Private Consumer – Q1, 2009
5.North American Market for Electric Vehicles for Fleets and Private Consumer – Q2, 2009
6.VOC Study on EVs – Customers Interest in Electric Vehicles and Acceptability to New Business Models
7.The Generation Y Consumer: Future Vehicle and Features Choice and Brand Marketing Positioning Study – Consumer
Study to have section on EVs – Q2, 2009
Note: new titles and schedule is subject to
change and is not guaranteed 12

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eMail: alvin.chua@frost.com
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