Download - ELECTRIC VEHICLES SECTOR 2 - WHEELER SEGMENT
E L E C T R I C V E H I C L E S S E C T O R
2 - W H E E L E R S E G M E N T
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2011: Launch of Reva asfirst mainstream electric car
2015: Launch of FAME-I as first-ever EV policy
2019: Launch of FAME-II policy
2019: Push on EV strengthened by significant tax benefits
E L E C T R I C V E H I C L E SIndustry Overview in India
Projected to be a USD 300 Billion industry by 2020
4.7 GwHstorage capacity by 2022
Dedicated National Policy in place : FAME-II
Over 750,000 vehicles sold in Financial Year 2019 so far
Proactive support from several Ministries and NITI Aayog
ELECTRICVEHICLES:
A BRIEF TIMELINE FOR
INDIA
0 1E L E C T R I C V E H I C L E S S E C T O R
The Indian electric vehicles ecosystem comprises of the following key segments:
Manufacturers– Automotive (OEMs)– Battery– Other Auto-components
Digital Technology Providers
Charging Infrastructure
Government and Regulatory Bodies
Financers– Banks– NBFCs
Users / Customers
T H E I N D I A N E V E C O S Y S T E M
0 2E L E C T R I C V E H I C L E S S E C T O R
INR 10,000 crore sanctioned for facilitating electric vehicles in India, launched from April 1, 2019
10 lakh registered 2-wheelers eligible to avail incentive of INR 20,000 each
Incentive of INR 50,000 to almost 5 lakh e-rickshaws having ex-factory price of up to INR 5 lakh
Incentive of INR 1.5 lakh each to 35,000 electric four-wheelers with an ex-factory price of up to Rs 15 lakh, and incentive of Rs 13,000
each to 20,000 strong hybrid four-wheelers with ex-factory price of up to Rs 15 lakh
Incentives to 7090 buses worth INR 50 lakh with ex-factory price up to INR 2 Crore
Cap on incentives for 2-wheelers to be 20% of the total vehicle cost
INR 1,000 Crore incentives for setting up electric vehicle charging stations, 5% GST (reduced from 18%) on charging stations
The demand incentive to be disbursed through an e-enabled framework and mechanism set up under the Department of Heavy
Industries
P O L I C Y S U P P O R T F O R T H EE L E C T R I C V E H I C L E S E C O S Y S T E M
0 3E L E C T R I C V E H I C L E S S E C T O R
Zero import duty on batteries, cells, motors, controllers and ICs
Components recommended for 0% customs duty (if imported from China): Lithium Ion Cell, E-Drive Assembly, Onboard Charger, Charging Gun
Manufacturers of components such as solar electric charging infrastructure and lithium storage batteries and other components will be
offered investment linked income tax exemptions under Section 35 AD of the Income Tax Act, and other indirect tax benefits.
5% GST (reduced from 18%) on buying electric vehicles
Income tax rebates of up to INR 1.5 lakh to customers on interest paid on loans to buy electric vehicles, with a total exemption benefit of INR
2.5 lakh over the entire loan period
P O L I C Y S U P P O R T F O R T H EE L E C T R I C V E H I C L E S E C O S Y S T E M
0 4E L E C T R I C V E H I C L E S S E C T O R
0 5E L E C T R I C V E H I C L E S S E C T O R
- Karnataka
- Delhi – NCR
- Uttar Pradesh
- Tamil Nadu
- Kerala
- Uttarakhand
- Telangana
- Andhra
Pradesh
S T A T E S I N I N D I A W I T H P R O M I N E N TE V I N I T I A T I V E S
C O M P O N E N T SO F T H E I N D I A N E V M A R K E T
0 6E L E C T R I C V E H I C L E S S E C T O R
INDIANEV
MARKET
2 WHEELERS
4 WHEELERS
BATTERY MARKET
CHARGING INFRA
HEAVY DUTY VEHICLES
3 WHEELERS
E L E C T R I C 2 - W H E E L E RM A R K E T I N I N D I A
OVERVIEW
2nd highest sales generated in the previous 2 years among
all segments of electric vehicles
19.9 million 2-wheelers manufactured - 2.1 million in
exports compared to 6.6 of China
Disruptive sentiment among local start-ups introducing
new mobility and vehicle solutions in the segment
Over INR 630 crore worth of imports expected in 2019 in
the 2-wheeler sector
FUTURE
All 2 wheelers in 150cc segment proposed to be electric
by 2025. Realistic industry targets: 25-30%
By 2025, about 28 million 2-wheeler projected to be
produced
Expected CAGR of 2-wheeler EVs to be between 8-9% over
the next 10 years
0 7E L E C T R I C V E H I C L E S S E C T O R
E L E C T R I C 2 - W H E E L E RM A R K E T I N I N D I A
CHALLENGES
High cost of electric 2-wheelers primary cause of
hesitation among the potential buyers
Presence of fragmented charging infrastructure and ever-
evolving policy structure
Fluctuating policy benefits influencing sales patterns
Relatively unknown developer base for lithium-ion
technology, which is deemed as the future of EVs
Lower buying potential of prospective buyers
OPPORTUNITY
Corporate Tax rate reduced to 15% for new manufacturing
companies set up in India after October 1, 2019
Only EV 2-wheelers of up to 150 CC engine capacity would
be sold from 2025
With a CAGR of 9+%, approximately two million 2-
wheelers will need to be electrified by 2025
0 8E L E C T R I C V E H I C L E S S E C T O R
ExistingFirms
Rivalry
LOW
OpportunityFor New Entrants
HIGH
Threat of Substitute Products
HIGH
Bargaining Power of
Buyer
MEDIUM
Bargaining Power of Supplier
LOW
E L E C T R I C V E H I C L E S S E C T O R 0 9
A N A L Y S I S O F 2 - W H E E L E R E V M A R K E T I N I N D I A
A B O U T T H E F I R M 1 0
C O I N M E N C O N S U L T A N T S L L PABOUT THE FIRM
Coinmen was founded in 2010 by 3 visionary partners, whose sole focus was to provide astute financial as well as business advisory & help companies in doing business in India
C O I N M E NW I T H A N E V F O C U S
A B O U T T H E F I R M 1 1
We are a firm of financial advisors, tax consultants, chartered accountants,business advisors, & corporate secretarial professionals who specialize in developing holistic strategies for companies enteringthe Indian market
Very few firms of our kind believe in the idea of disruption and taking risks. We tend to stem away from the herd with our pro-active involvement in the EV sector via insightful partnerships and an ever-evolving network.
Our service offerings are undertaken by dedicated service lines:
Corporate Secretarial Services
Tax and Regulatory Services
Financial Accounting Services
Corporate Finance Services
Audit And Assurance Services
WHAT WE DO
Setting UpA Business
TaxPlanning
Accounting
Transfer Pricing
Corporate Finance
Audit
O U R S E R V I C E S
A B O U T T H E F I R M 1 2
T H E T E A M
Nitin GargCo-Founder & PartnerFormer Manager, EY India (TRS)Specializes in Corporate Tax & International Tax
Vikrant SuriCo-Founder & PartnerFormer Manager, EY India (TRS)Specializes in Direct Tax & Tax Litigation Matters
Mohit AggarwalCo-Founder & PartnerChartered AccountantSpecializes in Corporate Finance &Debt Syndication
Nitish MittalAudit & Assurance PartnerFormer Sr. Manager, E&Y India (Assurance)Specializes in Internal Audit & Statutory Audit
A B O U T T H E F I R M 1 3
A team of ~100 professionals consisting of financial and business advisors, chartered accountants, corporate finance experts and auditors, Coinmen is a multi-disciplinary firm spread across:
100+ clients | 15+ industries | 6 practice areas | 2 continents
F O R E I G N B U S I N E S S D E S K S
S E C T O R & I N D U S T R Y E X P E R T I S E
Korea Business GroupHeaded by Daniel Lee
Japan Business GroupHeaded by Kenichi Tanaka
Infrastructure NBFCs
Auto Components
Electric Vehicles
TechnologyServices
Electronic Components
Healthcare Energy
AgriculturalCommodities
Education & Non-Profits
A B O U T T H E F I R M 1 4
Spain Business GroupHeaded by Berta Castells Pujol
France Business GroupHeaded byGunjan Uppal
Italy Business GroupHeaded by Gunjan Uppal
With new technologies disrupting the market every day, electric vehicles have come at a time where their need outweighs their disruptive nature. As a result, their adoption has been made paramount in India to ensure a cleaner future for its coming generations.
As solution providers, we intend to do our part by helping foreign and local companies connect the right dots to help them set up their electric vehicle businesses in India.
C O I N M E N C O N S U L T A N T S L L P+91 11 4016 0160 , +91 22- 26879849 | [email protected] | www.coinmen.in
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