Yo Bykes Project

Vikram Borar | NID | SDM | December 2012 Copyright 2012

National Institute of Design,Gandhinagar

December 2012

Corporate Business Design Project YObykes | Electrotherm India

Vikram [email protected]+91-955-868-2215


To study the YObykes and derive insights impartially would have become a difficult task unless we had con-sistent support. We take this as an opportunity to give each and everyone due credit for their contribution

Mr. Ashav Jadawala, Sr. Manager Marketing who guided us through the project at YObykes, Mr. Naman R Bhatt, Sr. Executive Marketing who guided about the different dealers and products range available in market.

Special thanks to Mr. Arun Sagar, Manager R&D, who guided us to understand the different processes and controls practiced in R&D team.

Acknowledgement


ContentAcknowledgement

The Company

Specific Business Units

The Brand

Challenges Facing EV’s

Benefits of an EV’s

Market Data and Research

Global Trends in EV’s

Indian EV Scenario

Competition Analysis

DISCLAIMERThe information provided in the document is an outcome of the primary and secondary research conducted by me. It was an academic project and any conclusions should not be derived solely considering this document.

NEMMP

Product Analysis

PEST Analysis

Contextual Mapping

Swot Analysis

Brand Status Mapping

Brand Performance Matrix

Suggestion Strategy - Constraint Matrix


Synthesis

Contextual MappingCustomer ProfileBrand EquityBrand Touch Point and IntercationBrand Performance Matrix

Research

Industry FormatIndustry TrendsCurrent Status of EV’s Benefits of EVChallenges Facing EV’sMajor Players and StatsProduct Categorization

Overview

The CompanySpecific Business UnitThe Brand

Analysis

Competition AnalysisProduct AnalysisPEST SWOTRoad Map to Develop EV


Overview


The Company Electrotherm (India) Ltd. has been into engineering and metal melting industry since 1983. In Electrotherm from inception, R&D has been their core competency with a common focus on developing and adopting technologies to customize customer needs making it a key driver in their Multi-Divisional growth story. Electro-therm today is a Multi-divisional ISO 9001:2008 certified global Company holding a 2,500,000 kW market share in the metal melting industry globally. Electrotherm is a research driven company with an appreciating asset in intellectual capital, its primary source of our multi-divisional growth story.

The major critical customized parts are manufactured in house under stringent quality control management and the finished products tested to withstand laid out qual-ity parameters with Just-In-Time delivery management principle to prevent customer installation & operational cost overruns make achieving deadlines a reality. The real responsibility at Electrotherm is to care for the installed equipment work with a zero down time objec-tive.

Electrotherm cater to the domestic market while ex-ports form major component of their turnover. They provide service to the global markets around the world with specific focus upon Middle East, Turkey, Pakistan, Bangladesh & Africa while catering to 31 countries around the world. Electrotherm commands more than 50% market share in induction melting equipment used by the engineering and automotive industry in India. Electrotherm is a truly global company taking social responsibility in its stride as ‘No engines means no pol-lution’ says Mr. Mukesh Bhandari, Chairman & Chief Technology Officer, Electrotherm (India) Ltd. A socially responsible Corporate Professional, who dreams to electrify the automotive and power sector-major pollut-ers of the environment. Electrotherm has taken the first step in committing to making a pollution free world by introducing the YObykes electric scooters and setting up the wind farms and solar power plants and is also working upon to introduce electric three wheelers and hybrid bus.

Electrotherm India


Electrotherm IndiaRenewables

ET Thermal“eleCtra” brand solar water heating systems are the efforts of technological innovations to cater to the needs of hot water to the Domestic Segments, indus-trial applications and Pro-cess Industries.

ET PhotovoltaicLong-term operation and maintenance (O&M) solu-tions for Photovoltaic (PV) solar power plants in India and abroad.

Steel and Pipe Division

High Quality Steel BilletsElectro TMT Plus BarsElectro TMT CRS Gold BarsStainless SteelElectro TLT Angles & Struc-tural

Engineering and Projects

Induction Melting Furnaces Induction Melting & Holding FurnacesElectric Arc FurnacesSubmerged Arc FurnaceMetal Refining ConverterLadle Refining FurnacesInduction Heating & Hard-ening EquipmentTransformers

Electric Scooter Division

YObykesComponents of Electric VehiclesBatteries for Electric VehiclesMotors for Electric VehiclesControllers & Other Components for Electric Vehicles

Specific Business Units


The Brand For Electrotherm India Ltd (EIL), makers of YObykes and India’s largest manufacturer of electric battery operated two-wheelers, the project is more of a passion towards petrol-free cities.

The competence and expertise of the company in power electronics give them an edge over others which motivated them to invest Rs 150 crore in this dream project since 2003-04. “From Rs 5 crore that was sanc-tioned by the board in 2004-05, the company has set up two assembly lines to churn out 2,40,000 units per annum.

YObykes has emerged as one of the market leaders in India in the electric scooter segment. YObykes is a market leader in the nascent Electric Scooter market in India. In a report to the Bombay Stock Exchange, Electrotherm said that it expects to double sales of YO bykes to 40,000 units in FY2010-11.

Electric scooters accounted for about 1% of the Indian motorcycle and 2-wheeler market in 2009 at about 120,000 units. The market is expected to grow to about 320,000 units by 2012. YObykes compete with Hero Mo-

tors, TVS Motors and the recently launched offerings from BSA Motors. There were few Chinese manufactur-ers also which entered into Indian market during early years but could not survive because there after sales service were provided.

YObykes are manufactured by Electrotherm at a 288,000 annual capacity factory in Kutch District of Gu-jarat, India. The company is rolling close to 50,000 units of EVs each year.

As of 2009, the YObykes range includes 5 models with differing specifications for speed and range. These include:

1. YO Spark2. YO Style3. YO Xplor ER4. YO Electron ER5. YO EXL

The company produces its own batteries in a manufac-turing facility in China.

YObykes


The company is keen to start a battery-manufacturing facility in India in near future. YObykes are a range of Electric Scooters, manufactured by the Automotive Divi-sion of Electrotherm Limited in India.

YObykes no-petrol revolution clicked with the consum-ers who were frequently burdened with hike in petrol prices. Currently, the company has six electric bike variants of which two are high-speed variants. The high-speed segment will account for two-thirds of the sales within the next two years. About 60% of company’s sales come from high-speed (more than 250W motor power) variants like YOspeed and YOEXL-Er. Low-speed (250W motor power) models such as YOsmart, YOelec-tron, YOxplor-ER has caught the fancy of school stu-dents who need not get licenses to drive.

Delhi is the biggest market for electric bikes for EIL accounting for 20% of its net sales followed by West Bengal at 15%.

With more than 200 dealers selling the EVs through YOworld across India and 320 YOservice points to offer after-sales service, the company recently introduced al-pha weaver technology-based batteries for its scooters. The ‘alpha-weaver’ battery, as against the lead-acid bat-teries, will increase the travel range of the electric bikes from 70 kilometres (km) for a single charge to over 105 km. It will also bring down the charging time from eight to four hours.

The Brand


Research


IndustryFormat

SedanHatchbackMulti-Purpose VehicleSports utility Vehicle

ScootersBikesMopeds

BusesHeavy Commercial VehicleLight Commercial VehiclesCoaches

LPG VehicleElectric Vehicles

ElectricVehicle

Electric ScootersLow SpeedScooters

• Top Speed 25 Kmph.• RTO Registration

not required

• Greater than 25Kmph.• RTO Registration

required

High SpeedScooters

Electric Cars

Passenger Cars Two Wheelers Commercial Vehicles

Alternative Fuel Technology Vehicles

Society of Manufactures of Electric Vehicle (SMEV) was formed in 2008 to provide a common platform for promotion, development and advancement of the interests of the EV Manufacturers and key stakeholders contributing to the category in India.


IndustryStats

Market Size

Rs 370 Crores

Growth Rate

40%

ProfitabilityPercentage

12 -16%

Industry Cost Structure

76%

6%

6%

6%

4%

2%

Selling and Administration

Employee Cost

Raw Materials

Manufacturing

Power and Fuel

Miscellaneous Expenses


The total amount of energy that a battery pack con-tains translates to the vehicle range. The power is how quickly that energy can be removed, which translates to vehicle acceleration. For these two attributes there are constraints within the car of weight and volume. In the vehicle application small batteries increase range, and light batteries increase the power to weight ratio for better acceleration.

The entire vehicle is constrained by cost. More batter-ies are more expensive which is why EVs are typically smaller. The Tesla roadster is well placed as a high end car so a $100k price tag is justified. As the price of bat-teries fall along with volume and weight per unit energy then larger electric vehicles will become economically viable.

Electric vehicles have a head start for quick acceleration due to the high torque characteristics of the electric motor. The discharge rate of batteries further enables high performance electric vehicles. New battery chem-istry such as nano-phosphate cathodes is now allowing for these high discharge rates. While this opens the door for great vehicle performance range will continue to be an issue.

The issue of range is one of the key limiting factors for electric vehicles. In most applications drivers cover fewer than 40 miles however the option to go further without waiting to recharge is one that drivers may be reluctant to relinquish. There are a number of different methods to address issues of range in electric propul-sion systems.

The plug-in hybrid (PHEV) and extended range electric vehicle (EREV) can fall back on the existing liquid fuel in-frastructure at the sacrifice of some efficiency and fuel costs. This strategy will likely dominate in the near term.The discharge rate discussed earlier relates to accelera-tion, but the mirror metric of charge rate will determine how quickly batteries can be charged. The higher the rate the more energy is lost through heat. Other com-ponents such as capacitors can have very high charge and discharge rates with lower losses, but typically have low energy density.

Plans are also being developed to swap out a battery pack instead of re-charging it. The challenge for battery exchange systems is the standardization of the vehicle, battery pack dimensions and removal mechanism. If implemented, however this option offers muchgreater flexibility to the driver to cover greater distanc-

Challenges Facing EVs

Energy and power densityBattery chargingLifetime performanceSystem Costs

Energy and Power Density Battery Charging


es without tailpipe emissions or lower efficiency.Every cycle of charging and discharging is a day in the life of a battery. Each battery chemistry has it’s own peculiarities of how different usage parameters affect its usable life. Advanced lithium ion chemistry exhibits small cycle degradation rates up to 1000 cycles with deep discharge capability. Current battery technology in automotive applications is likely to last up to 5 years. This is a step down from the current expectation for new cars.

The driving performance of electric vehicles diminishes over the lifetime of the vehicle. For example, a plug-in with 60 mile range at the showroom floor may only be 40 miles by the defined “end of life”. It is typical for any old car to show degraded performance as it ages, but the symptoms of age for an electric vehicle may be more pronounced and take some time for customers to accept.

As with charging and performance the battery technol-ogy will be the key determining factor for lifetime. The battery management system can control the charge and discharge rates to help extend life. Careful thermal management can also reduce capacity degradation over time. High temperature in particular are more damaging

Challenges Facing EVs

Energy and Power DensityBattery ChargingLifetime PerformanceSystem Costs

for the batteries.While battery costs are high, and the lifetime is rela-tively shorter than traditional power trains, there must be some more creative ways to address the burgeon-ing cost of the vehicle. Electric sports cars are a good early market, but to make dent in gasoline consumption there need to be many more electric vehicles on the road.

New innovations in the business plan for auto sales can already be seen. Instead of the driver owning the entire car, the battery pack will be leased and swapped out interchangeably by a service provider. The driver will pay a monthly fee for this service instead of taking on the risk of battery system repair.

Lifetime Performance System Cost


First is a need for economic stability. When the price of something as vital to daily operations as fuel is rou-tinely whipsawed by international events, it’s difficult to control and manage costs. Hedging can help to smooth costs in the short term, but the long-term costs will continue to vary wildly.

A second reason is a desire to reduce greenhouse gas (GHG) emissions–which is becoming a requirement for doing business in some jurisdictions–and is supported by central and state tax incentives. It has been esti-mated that plug-in hybrid electric vehicles, which use an electric motor with a gasoline engine as backup when the battery is depleted, can reduce GHG emissions by as much as 30 percent compared to a traditional vehicle over its lifetime (even when the emissions associated with power generation are taken into consideration).

Lastly, EVs’ cutting edge designs and technologies create a competitive edge and open up new business opportunities for companies operating in a tough global marketplace.

The key forces driving the e2w market growth need to improve the battery technology, which is alternative way of battle with so called energy consumption. There are near about 14 organized electric vehicle manufactur-ers in India and their combined market force about 70% of the market.

The e-bikes can be classified into two segments. The first segment comprises up to 250-w motor power ca-pacity (up to 25 km per hour speed). More over e-bikes do not require a driving licence. The second segment would be the over 250-w motor power bikes that are equivalent to a petrol two-wheeler with high power and high load capability.

Advantages of using e2w1. No Petrol, No Exhaust, absolutely zero-emission trans-portation2. Pollution free & silent3. A feel of smooth riding all weather/ hassle free riding4. Zero maintenance and nominal cost operation.5. Motor Vehicle Registration is not required.

Benefits of an EV


% in 2010

Plantation

Residential

Industrial

Transport

others

Plantation

Residential

Industrial Transport

Others

34%

8% 11%

33%

14%

Market DataSectoral Consumption of Petroleum Products


% in 2010

Plantation

Residential

Industrial

Transport

others

% in 2010

Air

shipping

Road

Rail

Air

Shipping

Road

Rail

10%2%

84%

4%

Breakdown of use of petrol by different sectorsMarket Data


Electric bikes are spreading like wildfire in China and are catching on in parts of Europe as well. In China, an estimated 120 million electric bicycles now hum along the roads, up from a few thousand in the 1990s. They are replacing traditional bikes and motorcycles at a rapid clip and, in many cases, allowing people to put off the switch to cars. From virtually nothing a decade ago, electric bikes have become an $11 billion global industry.

In the Netherlands, a third of the money spent on bicy-cles last year went to electric-powered models. Industry experts predict similar growth elsewhere in Europe, especially in Germany, France and Italy, as rising interest in cycling coincides with an aging population. India had virtually no sales until two years ago, but its nascent market is fast expanding and could eclipse Europe’s in the next year.

USA Today reports that sales in China are expected to reach a staggering 22 million in 2010 alone, bringing the number of e-bike owners in the country to one tenth of the population. It’s an impressive example of electrify-ing the transportation sector. It’s also good news for e-bike prices: mass production on that scale has brought production costs down, and just as Chinese-made mo-tor cycles have spread quickly in Asia and Africa, e-bikes are now radiating from China as well.

Political trends are encouraging for electric bikes as well. Despite disappointment at Copenhagen and slow progress on a climate bill in Washington, D.C., climate change, oil addiction, and the chance to transition to a job-generating clean-energy economy remain potent political issues across much of the industrial world, prominently including the Pacific Northwest.

To seize the opportunity for a clean-energy revolution and move beyond carbon, we need to get completely off coal and oil quickly. Efficiency, compact communi-ties, and transportation alternatives are our best friends in these tasks. But even with great success on all these strategies, we will still need some way to propel our trains, buses, trucks, and cars. The main no-carbon candidates are biofuels and electricity. We’ll need some of each, but electricity has tremendous advantages. It can come from many different carbon-free sources, can travel easily by wire, and can integrate the transporta-tion sector with the rest of the electric grid in ways that make each stronger and more economical.

An impressive array of political and industry leaders have recognized and embraced the pivotal role the electrification of transportation can play in advancing a clean-energy economy.

Trend 1 Trend 2Trends inElectric Vehicle


Trends inElectric Vehicle

Electrifying bikes is a perfect first step in pursuit of vehi-cle electrification, because battery-assisted two wheel-ers are an easier engineering challenge than are electric cars.

Vehicle electrification is an energy storage problem, not a propulsion problem. Electric motors are much more efficient than fossil-fuel engines, but storing electricity is dramatically harder than is storing liquid fuels. For example, you can fill the tank of a gasoline-powered car in five minutes then drive on that fuel for several hours at highway speeds. Conversely, you need to recharge the Tesla Roadster, a $100,000 all-electric sports car, for roughly an hour for each hour of highway driving. (It takes 3.5 hours to charge fully. Its range is 244 miles, which it could cover in 3.5 hours at 70 mph.

Electric bikes are on the verge of breaking through in the Pacific Northwest, spreading contagiously as they have in China. But maybe they are not. Maybe the barri-ers to electric bikes are different in North America than in China or Europe. Whether or not you should buy one doesn’t depend on this question. But our public policies with regard to electric bikes, and perhaps with regard to other electric vehicles, depend on what’s blocking e-bikes in North America. If it’s just a matter of push-ing them to a market tipping point, public subsidies can help — the subject of my next post.

The popularity of battery operated two-wheelers is globally accepted and the benefits of the vehicles are numerous. These electric two-wheelers are battery operated and can be recharged even from household electric points. In the context of the rising fuel prices, these vehicles can be an economic and viable alterna-tive. Electric two wheelers have low maintenance costs and can be operated at around 1/10th of the cost of a petrol driven vehicle. Therefore, these fuel-free vehicles offer zero emission transport facilities and support a pollution free, cleaner and greener environment.

Trend 3


Indian EVScenario

Two-wheelers constitute one of the most preferred means of transport in India and the country plays a dominant role in this segment of the world’s automo-bile market. The latest addition in this sector is the electrically operated vehicles (EV) that have made great forays in the Indian market. At the global level, the electric two-wheelers market has grown made substan-tial. From 23 lakh units in 2003, the number of electric two-wheelers has increased to around 1.78 Crore units in 2007 and countries like China (which accounts for around 75% of the share) followed by the USA are the major players in this sector.

The electric two-wheeler market is still at a nascent stage in India. As per the Society for Manufacturers of Electric Vehicles, the sales of electric two-wheelers in India are expected to double in next two years from nearly 1,20,000 bikes in 2009 to 2,40,000 bike in 2011 and 3,20,000 e-bikes in 2012. The electric two-wheelers hit the Indian roads through some of the manufacturers like Electrotherm India Ltd who are considered pioneers of this sector in the Indian market. Under the name of YObykes, this company develops and manufactures these electrically operated vehicles in India.

EVs, including Electrotherm’s YObykes, Hero Electric, TVS Motor, EKO Vehicles, Lectrix Motors, Ampere Vehicles Pvt. Ltd. and Oreva’s E-bike, share a mere 1% pie of the ten million two-wheeler domestic market sales annually, and has seen exit of several unorganized players (who would import batteries from China and assemble EVs locally). Yamaha is also eyeing the Indian market and is all set to launch electric two-wheelers in the country.


ProductAnalysisCompetitionAnalysis

Market share % 2010

Yobykes

Hero Electric

Oreva

Avon

Others

Market Share of Major Electric Two Wheelers Manufacturers

YObykes

Hero Electric

OrevaAvon

Others

28%

19%

6%

42%

5%

Other manufactur-ers include BSA, Lohiya, Yamasaki Morello and large number Chinese brands

Close to 1,10,000 units were sold in 2011


NEMMP Considering crucial role of EV in future of surface trans-port, Government of India has started aggressively working on developing ‘National Electric Mobility Mis-sion Plan’

NEMMP Objective is to …“Develop a mission plan and road map for promoting the adoption of an optimal range of electric mobility solutions for India, which can support national fuel security, provide affordable and environmentally friendly transportation and allow the Indian automotive industry to achieve global technology leadership”

An investment of more than Rs. 13500 is proposed by Government of India for development of EV in India.

Under NEMMP, a major investment is expected on “De-velopment of Battery Technology” in India as battery is the most crucial component and accounts for 60-80% cost of vehicle.

National Electric Mobility Mission Plan

1. Transport sector consumes 33% of total petro-leum product in India

2. To which road transportation contributes 84%

Why NEMMP?


Fuel Security Impacts

Stake Holder’s Inputs

GlobalTechnological

Evolution

Consumer Research

Global Perspective

Road Map to Develop EV Market

Tangible impact on fuel Security objective

Industry Readiness for xEV’s

Minimum Efficient Scale

Government views on intervention

Latent demand for EV technologies at price performance based on consumer Interviews

Global Evolution of lithium-ion battery cost.

Total cost of ownership for different power trains based on annual distance travelled.

Algorithm to convert power train total cost of ownership to market penetration.

Expected global penetration for EV’s by 2020

Ministry of Heavy In-dustries & Public En-terprises and Society of Indian Automo-bile Manufactures (SIAM) have jointly conducted a study to define a road map for development of EV in India


UserResearch

• Reliable Product• Indian Company• 65 Km in one charge• Cannot go to Ahmedabad...• Every one knows about YObykes• For ladies seat is very good• Doesn’t make noise• 30-40Km daily drive

Users 3 Buyers

Findings


UserResearch

• Price Range - Rs 25000 - Rs 45000• Dual Color is good. • White not available.• Tyres are too thin.• 30-40Km daily drive• YObykes a ‘cool name’• Villagers around Gandhinagar

know about it.• Looks like Eterno and Activa• Cruise-Power Mode good feature• DVD player offer not good

Intenders 4 People

Findings


UserResearch

• Profit margin is the highest. Varies between Rs 2200 - Rs3000.

• Demand for product is good• People buy it as birthday gift• Supply is not predictable• Will not survive for long• 6% return on initial deposit.• Ethical Company• Need to increase the range to

100Km• Fit and Finish not up-to mark• Reliable Product• No Marketing by the company

Dealers 3 Owners

Findings

UserResearch

• Aim localization of component manufacturing

• No governing authority like SIAM• No allocation of funds in marketing• Subsidies drive growth• Battery is most expensive component

in product• Best R&D capabilities

Company 4 Executive

Findings


Analysis


Kerb Weight (Vehicle Weight) 114 Kg

Maximum Speed 45 Km/hrMaximum range per change 70 - 75 Km/chargePay Load Capacity 130 kg

Motor (BLDC HUB Motor) 900 WBattery Type VRLA Deep Discharge

Battery (VRLA Deep Discharge) 33 AhElectricity Consumption / Charge 1.6 UnitsCharging Time 6 to 8 Hrs

ProductAnalysis

YO SparkYO StyleYO Xplor ERYO Electron ERYO EXL

Telescopic Suspension

Dual Mode Driving

Extra Storage Space



Maximum Speed 25Kmph

Maximum range 95 - 100 Km/chargePay Load Capacity 75 Kg

Motor (BLDC HUB Motor) 250 W

Battery Type VRLA Deep Discharge Battery 33 AhElectricity Consumption / Charge 1.6 UnitsCharging Time 6 to 8 Hrs

ProductAnalysis

YO SparkYO Style ERYO Xplor ERYO Electron ERYO EXL

WiderTyres

Dual Color Graphics

Powerful Batteries


ProductAnalysis


Kerb Weight (Vehicle Weight) 91 Kg Maximum Speed 25 Km/Hr Maximum range 70 - 75 Km/charge Pay Load Capacity 75 Kg

Motor (BLDC HUB Motor) 250 W Battery Type VRLA Deep Discharge

Battery 24 Ah Electricity Consumption / Charge 1.25 Units

Charging Time 6 to 8 Hrs

Digital Odometer with Trip Switch

Multi Reflector Head Lamp

Powerful Batteries


ProductAnalysis


Kerb Weight (Vehicle Weight) 81 Kg Maximum Speed 25 Km/Hr Maximum range 95 KmPay Load Capacity 75 Kg Motor (BLDC HUB Motor) 250 W Battery Type VRLA Deep Discharge Battery 24 Ah

Electricity Consumption 1.25 UnitsCharging Time 6 to 8 Hrs

StylishIndicators

LargeStorage Space

Mobile Charger


ProductAnalysis



Maximum Speed 55 km/hrMaximum range 75 Km/chargePay Load Capacity 130 kg

Motor (HUB Motor) 1800 W Battery Type VRLA Deep Discharge

Battery (VRLA Deep Discharge) 40 AhElectricity Consumption 2.25 UnitsCharging Time 6 to 8 Hrs

PowerfulMotor

LargeStorage Space

TelescopicSuspension


ProductAnalysis

Kerb Weight (Vehicle Weight) 75kg

Maximum Speed 25 km/hrMaximum range 70 Km/chargePay Load Capacity 90Kg

Motor (HUB Motor) Less Than 250 W Battery Type VRLA

Battery (VRLA Deep Discharge) 48V, 24AHCharging Time 6 to 8 Hrs

Large LegRoom in Front

Super Sturdy Design

DetachableBatteries

Hero MaxiHero OptimaHero Wave DXHero CruzHero E-Sprint


ProductAnalysis

Largest Selling Model for Rugged designLarge Wheel Size

Extended Range.Possibility of Fitting

Extra Batteries

Kerb Weight (Vehicle Weight) 82Kg



Battery (VRLA Deep Discharge) 48V, 24AHCharging Time 6 to 8 Hrs



ProductAnalysis

Body Integrated Indicators

Anti-TheftAlarm

Odometer to Clock Distance




Battery (VRLA Deep Discharge) 48V/33AHCharging Time 6 to 8 Hrs



Large SeatAerodynamic

Styling

Odometer for Clocking Distance

ProductAnalysis









Motor (HUB Motor) 800W Battery Type VRLA


Mobile Charger

Anti Skid Front Disk Brakes

Anti TheftAlarm

High TorqueMotor

High Speed E-Bike with Dual Mode

ProductAnalysis






Battery (VRLA Deep Discharge) 48V/20AHCharging Time 6-8Hrs

Alloy Wheel with Telescopic

SuspensionsLarge Leg SpaceSelf Powering

Stand

Single Key Locking System with Central Locking

ProductAnalysis

Morello PunkMorello Ripple


Hydraulic Rear Suspension Designed for Indian Roads

ProductAnalysisProductAnalysis

Morello PunkMorello Ripple

Large Leg Space





Alloy Wheel with Telescopic Suspensions






Alloy Wheel with Telescopic Suspensions

Aerodynamic Styling

Large Wheel Size

AVON E-ScootAVON E-Mate






Broad RearSeat

Aerodynamic Styling

Broad Tyres

AVON E-ScootAVON E-Mate


An important step in this direction was taken in the Un-ion Budget of 2010-11: the Indian Government reduced the excise duty on electric vehicles to 4% down from the current 8%. There has also been a reduction in custom duties in batteries as well. Such steps will help make the Indian market more lucrative as the future of the Indian two-wheeler market definitely lies with electric vehicles. On the back of the incentive package for electric vehi-cles announced by the ministry of new and renewable energy last November, average monthly sales of electric two-wheelers has risen 20 per cent. For 2010-11, the gov-ernment will support sales of 20,000 units and 10,000 units of low-speed and high-speed two-wheelers, re-spectively, while it will be 80,000 units and 20,000 units in 2011-12.

The withdrawal of subsidy by The Ministry of New & Re-newable Energy (MNRE) on March 31, 2012 has affected the sales of electric two-wheelers. According to manu-facturers, the sale has come down by 70 per cent in the last three months and if the government does not take proactive steps, there are chances that the Industry may be in doldrums. The manufacturers are also facing closure of dealership. In last three months about 250 dealers closed their operations, out of 1250.

PoliticalThe manufacturers demanded the Government and MNRE to extend its support to the Electric Vehicle Industry to bridge the gap between the discontinuation of MNRE Incentive Scheme and National EV Policy by way of extension of MNRE Incentive Scheme till Nation-al EV Policy as it appears that if current scenario pre-vails, it would be difficult for the industry to revive even after National EV Policy kicks in. They demanded that for the current fiscal, the government should earmark Rs . 50-60 crore as subsidy component for the consum-ers.

In November 2010, The Ministry of New & Renewable Energy (MNRE) announced a financial incentive scheme for Electric Vehicle buyers.

Due to introduction of the policy, EV industry saw 200% growth in its sales. The organized players saw a huge growth in the market share & the industry started to grow in an organized form. The Industry was selling around 75,000-110,000 units per annum.

ProductAnalysisPESTAnalysis


There are however, certain concerns regarding the sec-tor of two-wheelers in India that need to be addressed. Most of the components, especially batteries and motor controllers, for electric two-wheelers in India, are imported from countries like China, Taiwan and the USA. High custom duty, lack of a uniformed VAT struc-ture for the vehicles and key components, absence of component suppliers, inadequate provisions for charg-ing facilities have plagued the growth of this sector and have increased the cost of the vehicles. Strong govern-ment initiatives, in the form of subsidies and reduction of duties that will create localisation of EV components, definitely are the need of the hour.

Under the Rs 95-crore scheme, the government is providing incentives of up to 20 per cent on ex-factory prices of electric vehicles sold in India during the re-maining part of the 11th Plan (ending March 2012), with a cap of Rs 4,000 for low-speed, two-wheelers and Rs 5,000 for high-speed ones. The price of an electric bike varies between Rs 25,000 and Rs 40,000, depending on the speed range.

This incentive was passed on up-front by the manu-facturer to the customer and was later claimed by the

Economicgovernment. The scheme envisages incentives of up to 20% on the ex-factory prices of the vehicles, subject to a maximum limit. The cap on the incentive was –Rs .4,000 for low speed electric two wheelers, Rs .5,000 for high speed electric two wheelers”

According to the entrepreneurs, the electric vehicles which were selling around 7,000 units per month before April 2012, now has been reduced to 2,500-3000 units per month. It is worth mentioning that according to the manufacturers the Society of Manufacturers of Electric Vehicles (SMEV) there are 16-17 electric two wheeler manufacture in India having combined installed capacity of 5 lakh unit per annum.

ProductAnalysisPESTAnalysis


Global warming has numerous effects the planet. The polar ice caps are melting at an increasing rate causing the seas to rise. If this continues at the rate it is going millions of people around the world will be left home-less due to flooding. More deaths due to disease will be unavoidable due to higher toxin levels in the air; also there is a larger range of disease carrying insects such as mosquitoes. The change in climate will also drastical-ly affect many plants and food crops needed for human survival. Some have also predicted that global warming will be the end of our planet due to war between coun-tries for the remaining goods after the climate causes them to become scarce.

Automobiles also produce other harmful gases other than carbon dioxide. Some of these include Nitrogen Oxides, Volatile Organic Compounds, volatile matter and carbon monoxide. All of these can lead to ground level smog that damages the respiratory system and kills plant life.

Some environmental effects from automobiles will remain a problem even if automobiles were all electric. First, the power plants would still be releasing large amounts of greenhouse gases into the atmosphere dur-ing electricity generation to charge the cars. Less obvi-ous are other effects such as runoff of from oils, washer

fluid, and salt; as well as brake dust. Also another over-looked effect on the environment is the large amount of energy expended in the actual manufacturing process of the vehicles.

Electric vehicles may not have any direct emissions, however they are not emissions free either. Some even believe that electric vehicles are no better than tradi-tional fossil fuelled vehicles for the environment. Al-though there are no gases emitted from a tail pipe of an electric vehicle, a significant amount of pollutants are emitted in the generation of electricity to charge the car’s batteries. Almost fifty percent of the United States electricity is still produced by burning coal.

If an average gasoline powered vehicle in the United States gets 17 miles per gallon, then it would emit 115 pounds of carbon dioxide per 100 miles driven. A plug in electric vehicle requires about 30 kilowatt hours of elec-tricity to cover a 100 mile distance. One kilowatt hour of electricity produces 1.55 pounds of carbon dioxide to generate, meaning an electric vehicle will produce about 45.5 pounds of carbon dioxide per 100 miles driven. Looking at these numbers one can see that an electric vehicle has much less of a negative impact on the environment than a fossil fuelled vehicle. Keep in mind that the values for gasoline vehicles do not in-

Social and EnvironmentalProductAnalysisPESTAnalysis


clude emissions from pumping the oil or transferring it to filling stations. On the other hand there are some downfalls of plug in electric vehicles and hybrids.

The first is the amount of energy that is required to manufacture the vehicles’ battery packs. Some studies suggest that 1.5 times the energy is required to manu-facture a hybrid/electric vehicle when compared to their gasoline counter parts due to the added energy needed to produce the battery packs. It has not been deter-mined just how much energy is required to produce the batteries; however some researchers believe that the energy required is enough to offset the decreased emis-sions of the vehicles, putting them on the same level as traditional cars.

Another major concern with hybrid and electric vehicles is in the recycling of the vehicles battery packs. Most batteries in the automotive market are made from lead, nickel, or lithium. When batteries are disposed of improperly these metals can be detrimental to the environment. Lead and nickel sitting in a landfill can cause pollution to the groundwater causing acid rain and making it unsafe for drinking and also harmful to plant life. Both are also know to be carcinogens, caus-ing disease and respiratory irritation in humans. Accord-

ing to a study done by Environmental Defence the more popular lithium ion batteries found in most hybrids and electric vehicles are not as toxic as their lead and nickel counterparts, but still have negative effects on the envi-ronment.

Auto makers such as General Motors and Toyota claim that their battery packs are 100% recyclable, however it is expensive to do so. Some companies are offering in-centives in order to promote the recycling of the batter-ies. For example Toyota offers a $200 stipend and even provides a number to call printed on the battery itself. Even with these incentives there is no way to guarantee that owners will in fact recycle the batteries; leaving the window open for batteries to end up in the landfills causing further destruction of the environment. Switch-ing over to hybrid vehicles can make a difference in the impact on global warming. For every gallon of gasoline burned, 20 pounds of carbon dioxide is produced. This means that our cars and trucks alone are producing 300 million metric tons of carbon dioxide gas every year. Carbon dioxide is the greenhouse gas most responsible for global warming. When inhaled it restricts oxygen to the brain, cause respiratory problems, and has been known to cause cancer. The gas also reacts with the air causing acid rain and ozone.

Social and EnvironmentalProductAnalysisPESTAnalysis


Technical innovation keeps improving electric bikes. The latest Giant, with lithium ion batteries, reportedly has a real-life battery range of 50 miles, doubling what previ-ous models achieved. Sanyo has introduced a European style city bike (pictured on the left) with impressive power-system integration.

Trek, a leading American bike maker has entered the e-bike market with designs that may prove appealing to muscle-powered cyclists because of their high-perfor-mance feel. Meanwhile, garage inventors keep coming up with intriguing innovations like the StokeMonkey (which I described previously);Electric Mountain Drive from Oregon’s Ecospeed (pictured atop this post); and this VoltWagon electrified trailer (pictured below) that hitches to a regular bike and hauls cargo effortlessly.

Luckily for e-bike makers, advanced battery research is in its heyday, thanks to billions of dollars of investment from public and private institutions around the world. The hunt is on for better batteries not only because they’re essential to electrifying transportation and get-ting the world off of oil but also because they’re needed to harness intermittent, renewable power sources such as the sun and the wind. As battery improvements emerge, electric bikes stand to gain quickly.

TechnologicalProductAnalysisPESTAnalysis

ProductAnalysisCustomer Profile

Profile Students Mid-Level Executives Working Women

Age 14 - 19

Wants to buy a motorcycle but because of no driving licence and rash driving, parents buy him an EV

Drives to school/college. In the evening roam around in the locality. Drives 20-30 kilo meters daily

45 - 60 25-35

Dependence on public transport and rising fuel prices forces him to have a look on an EV

Nuclear family, Independent, Serviceor gets as a gift from husband

Drives to the office which is generally located 10 - 15 kilo meters away from home. Daily ride is of 30 - 40 kilometres

Drives to the office which is generally located 10 - 15 kilo meters away from home. Daily ride is of 20-25 kilometres

Income Dependent 3 Lac - 5 Lac p.a. 2 Lac - 3 Lac

Buying Behaviour

Usage Pattern

Vikram Borar | NID | SDM | CBDP Module | October 2012

SWOTAnalysis

• High Sales Volume in the Industry• Large Dealership Network• Prepared for high volume manufacturing

with plant capacity of 200,000 vehicles• In-house production unit for batteries • Biggest Product Portfolio• High margins for Dealers• Large R&D setup

• Launching new products directly targeting petrol two wheelers

• Exporting with a world class product• May try to enter in electric cars because

of already established foothold and experience

• Developing a highly premium product to elevate brand status and catering to new consumer segment

• Deliveries by suppliers are uncertain• Unpredictable deliveries to dealers• Fit-n-Finish Quality is not upto the mark• Focus on Brand Positioning is missing • Catering to only few markets• Portfolio consist of similar looking and

similar performing products• No focus on styling

• High dependency on Govt. policies and subsidies to increase sales volume

• Hero Motors has good presence and bet-ter quality products

• Market data is not present because of the absence of a set governing body

Strengths Weakness

Opportunities Threats

Contextual Mapping

Brand Context

ConsumptionContext

PurchaseContext

Social and CulturalContext

2 wheelers in India are a highly accepted phenomena. Because of inadequate road infrastructure, disposable income and low running cost they have already penetrated into remotest corners of the corner. Also increasing concern over emissions and global greenhouse gases have ignited thought towards consuming ECO-SAFE products

Electric vehicles are highly economical especially when mobility is within the city. They provide similar level of comfort. Due to lower demand the market has not been able to mature enough to take on performance based vehicle. The current focus has been towards gaining maximum running efficiency.

Because of cheap Chinese exports during the introduction phase of EVs, the market was flooded with poor products and brand. This created a bad impression for electric vehicle. However, now it is changing and few brands are gaining good footholds on certain markets because of their quality offerings and accessible after-sales service.

Consumers are not buying electric vehicle as a substitute to their preferred mode of commuting but rather as an additional way to commute. Most buyers of EV’s are either minors or petrol vehicle owners. Consumers still have not been able have full faith on dependability of EV’s


ProductAnalysisBrandEquity

Preference

Familiarity

AwarenessAssociation

PersonalityAvailability

Loyalty

YO bykes are present in many regions through distributor network. However all product are not available every time because of supply side constarints

Since the market is small, the brands have not been able to evolve set design language. Product accross different brands look alike as the plastic components are directly sourced from China to reduce the cost of developing a dye

Most of the customers of YObykes are first time buyers. The market has not been evolved to decide on brand loyalty

The brand has not been able to profile a particular customer segment. Even the ‘Environmentally-Conscious’ factor is not attached with the brand

Customer associate YObykes as a reliable brand. The product quality match up with the industry standards

In some markets YO bykes are the most preferred brand along with Hero Electric. ‘Made in India’ acts as an advantage.

Customer who are not in the mode of buying an electric scooter are hardly aware the brand. Hero seems to be a more familiar name.


Brand Status

The current status of YObykes a brand is good value for money in the mind of customers

The long term aim of the company is to make each product as a brand in itself. It is seen as a good strategy but the clear road map to achieve is severely missing.

• Reliable Products• Catering to multiple

customer segments• Educating customers

about importance of electric vehicle through developing POSMs

• Products are made in India• Battery is manufactured by

the parent company

• Untrained interaction with customers by sales executive

• No Customer Segmentation and categorization study for each product

• Separate allocation of funds for marketing and promotions

• Focus on incremental innovation for the products.

• Developing products that are direct rip-off of competitors

Brand Strength

Important for the Customers

Not so important for the Customers

Brand Weakness


Synthesis


Brand Performance Matrix Market Share

Brand Recognition

Dealership Network

Product Portfolio

Marketing and Promotion

Product Availability

Product Reliability

Servicing and Maintenance

Fit and Finish Quality

New Innovation and Features

YObykes Hero Electric OrevaYamasaki

After meeting all the stake holders the matrix has beengenerated to gauge the performance of each brands under few heads.

Higher the number of stars, better is the performance.

Stars are given by considering their rela-tive performance

ProductAnalysis

Strategy-Constraint Matrix

Cons

trai

nts

Adapt Product and Processes

Invest in Marketing and Branding

Utilizing Synergy Advantage

Faster Product Development

Initiating Comprehensive

Dialogue with the Government

Strategies

Market Information

Physical Infrastructure

Knowledge and Skills

Supplier Handling and

On-time Production

Small City based pilot studies can be con-ducted to know about demand emerging in future from customers

Constant training pro-grammes to upgrade the knowledge an skill base of employees to follow efficient practices

Electrotherm being present in metal engineering and battery manufacturing may develop product taking advantage of synergies form other group companies

Bringing in marketing and production experts from other divisions to suggest measure to de-velop better products

Advertisements can be based on making peo-ple aware about ben-efits of electric vehicles

Formation of a separate team which looks after all the visual communi-cation and sales mate-rial of YObykes

Generating substantial data from market to plan the product and develop it at faster pace

Suggest to set up confed-eration of electric vehicle manufactures which functions independently to check market move-ments in electric vehicles

Six-Sigma, Kaizen train-ing programmes should be initiated for faster product development

New research pro-grammes at Govt. institutes focused on Electric Vehicle Technol-ogy

Invest in updating the resource planning and supply management system to develop products and processes

Building infrastructure for faster movement and storage of raw materials, inventory, and finished goods from point of origin to point of consumption.

Backward or forward integration to reduce the dependency on OEM’s

Identifying suppliers who can produce and supply equipment for multiple group compa-nies

Strong guidelines should be laid on the retail environment of dealers and service stations

If using specialized equip-ment which are well know, YObykes can actu-ally take the advantage by mentioning them in their marketing materials

Adoption of global production practices and HALT methodologies for quicker value engineer-ing and quality control

Promoting dialogue with the Govt. to make policies which are conducive to the development of electric vehicle production

Adherence to the laid guidelines and faster re-sponse time to market product

Special subsidies and incentives can be tar-geted to the suppliers dealing with the electric vehicle equipment

National Institute of Design,Gandhinagar

December 2012

THANK YOU

Vikram [email protected]+91-955-868-2215

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