electric vehicles unplugged global marketing analysis

8/7/2019 electric vehicles unplugged global marketing analysis

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Agenda

Driver training is considered vital to ensure that drivers are aware of thefeatures, capabilities, and limitations of safety systems, and are assured of therole that they play in managing the technology. This is particularly importantbecause speeding, impaired driving, varying road conditions, and several other

conditions can impact the performance of any safety system.

The primary responsibility for ensuring that safety benefits are attained or thatsafety systems are used properly resides with the driver. Despite the advancesin technology, training needs to keep pace. Driver training programs shouldtherefore ascertain that for every new safety system installed, new training isimplemented.

Urban Mobility And Its Influence In Shaping EV Infrastructure

Electric Vehicles Market Overview, Technology Roadmapand Infrastructure Trends

Global Market Size and Forecasts

Business Model Analysis of Key Industry Stakeholders

Voice Of The Customer Fleet and Private Customer

Feedback On EVs

Conclusions And Recommendations


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3

Definitions Battery Electric Vehicles

Neighborhood Electric

Vehicles (NEVs)

NEV is a US DOT

classification for vehicles

weighing less than 3,000 lbs

(GVW) and top speed of 25

mph. NEVs generally are

restricted to operate on

streets with a speed limit of

35 mph or less.

A city car is a European

classification, for a small

and light vehicle intended for

use in urban areas although

they can operate in mixed

city-highway environment. In

Japan, city cars are called

kei cars.

Extended-Range EVs

(eREVs)

A plug-in hybrid electric

vehicle (PHEV) with a IC

engine or other secondary

sources connected to a

generator to supply the

batteries. The drive range

and speeds are comparable

to IC engine vehicles.

High-Performance

EVS (HPEVs)

Sporty PHEVs or battery

electric vehicles with top

speeds exceeding 100 mph

and driving range

exceeding 100 miles. The

price of these vehicles is

expected to approach or

exceed $100,000.

GEM e2, e4, e6; REVA G-

Wiz i; ZENN; ZAP etc.

Smart EV, Th!nk City, BMW

Mini and others

Chevy Volt, Toyota Prius

PHEV, Chrysler Sedan and

others

Tesla, Fiskers - Karma,

Venturi - Fetish, Lightning

GT

City Electric Vehicles

(CEVs)


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By 2020 Mega Super Cities Will Emerge in Developing Economies

Impacting Personal Mobility and Supporting EVs

Example 1 : Johannesburg and Pretoria becomes one BIG Mega City called Jo-Toria

Example 2 : Town Planning could evolve with Offices and Homes Adjacent to each other or within a

small compound area (e.g. Sao Paolo, Chennai with Satellite towns)

OfficeHome

Source: Frost & Sullivan


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In India and China there will be 6 Mega Cities With World-Class

Infrastructure and Development of Sub Satellite Towns (e.g. Chennai)

2020 + Interconnectivity with

Sub Satellite Towns

2015 World Class

Infrastructure (Equals Tier 2 city)

Core City

Satellite

Towns

Chennai 2000 Satellite Towns Developing

Outsourcingcompanies (nonIT), like researchhealthcare, automanufacturingwill increasenumber ofsatellite towns Development of outer ring

roads around Satellite and SubSatellite towns connected toMotorways

Commercial

hubs


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Electric Vehicles Market Overview, Technology

Roadmap and Infrastructure Trends


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Electric Vehicle Market Provides Opportunity to Enter New Fields

Could work to improve charging time and safety

Infrastructuresupplier

Key

Responsibility:

Development of

ChargingInfrastructure

Key

Responsibility:

Promotion of EVuse

UtilitiesIntegrators

(Project Better

Place)

OEMs

System/BatteryManufacturersGovernment

Charging

StationManufacturers

Integrators to create partnerships with Utilities, OEMsand Government

Subsidies forEV purchase

andinvestment in

R&D to reduceemissions

Lower fueldependency byexpanding the

use of

renewableenergy sources

Suppliesinfrastructure todistribute their

energy

Cooperation to simultaneously promote EV use and electricity as a fuel

Development ofperformingbatteries


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Electric Vehicle Technology Roadmap (Global), 2008-2015

- Charging Times to Drop to


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Electric Vehicle Technology Roadmap (Global), 2008-2015

- Iron Phosphate and Manganese Based Li-ion Preferred

Electric Vehicle Market: Technology Roadmap for Electric Vehicles (Global), 2005-2015, Cars and CommercialVehicles


Lead acid

Nickel Metal Hydride

Batteries

Sodium Nickel Chloride

Phosphate based

Manganese based

Titanate based

2005 2010 2015 2020

Silica based

Lithium Ion

Zinc Air

Permanent Magnet

ElectricMotors

Asynchronous

Switch Reluctance

In wheel motors

Motor Power- Up to 70 kW 70 kW 250 kW


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Improved range extension will see charging points extend beyond city limits to urban and sub-urban areas with emphasis

on both normal and fast charging stations

50+

25

10

Normal Charging Spots

Fast Charging Spots

Mile Post

Commercial Facilities

E.g., Dept. Stores, hotels,

malls

Special parking lot for EV

next to handicapprovision

Free charge (1-2 hrs)

using AC outlet

Pub. & Pvt. Parking Place

Special EV parking space

Free charging from charging outlet

Home Normal charging by nigh time

discounted electricity

Special charging plug at home

Car Dealers, Public

Building

Current strategic

locations for fast

charging

15 min. charge to yield

60 miles range

PRESENT DEVELOPMENTS WITH RESPECT TO ELECTRIC CHARGING STATIONS (2008 - 2012), World

Current EV Range (60-80 Miles) Limits Developments Of Infrastructure

to Metropolitan Areas.



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50+

Highway - Motels / Dining

High potential of fast charging

stations seen to extend range of

EVs

Battery Swapping stations likely

to gain ground as well

Long Duration Stay

Multiplexes, railway stations are

strategic spots where consumerPark & Pickup interval s are

ideal for 80% charge

Conventional charging stations

preferred over fast charging

Corporate Offices / Independent Houses

10

Short-Medium Duration Stay

Dining & Restaurants, Golf courses,

movie theatres Fast charging stations attractive

EV Range extension will see the rise of urban/sub-urban consumers using EV

Fast charging stations seen across strategic locations on highways like motels, dining centres etc

Normal Charging SpotsFast Charging Spots

Mile Post

Future Developments in Electric Charging Stations (2010-2015) : Target

Focus on Parking Lots With Over 30 Minute Journey Stops



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IN-BUILT SOLAR PANELS

Generating proprietary electricity

Will get energy from Utilities through groundwork

INTERACTIVE LCD DISPLAY

Payment option - either manually through Debit/Credit Card orautomatically through RFID

Club with parking charges

Opportunity to place orders in nearby coffee centres,restaurants or internet bays

Vehicle Diagnostic Interface

CHARGING TYPE OPTIONS

Compartments to provide charging capabilities for up to 4vehicles at a time

Option to provide both on-board and off-Board charging

DESIGN BLEND WITH ENVIRONMENT

Charging posts are specifically designed to blend witha specific cities environment theme

EXTENDED FUNCTIONALITY

Battery chemistry sensing

Content delivery for on-board systems like MP3 stereos,TiVO systems and back-seat entertainment

Gaming Options coin fed for additional revenuegeneration

Vehicle Tracking System

GARAGE SERVICES

Future functionality of automotive diagnostics

Communicate any or all (by law) or requested (by mfg)access to in-car diagnostic or fault tolerance modules inreal time to a shared database

Use unique IP address to store repair data for future accessand compliance tracking

MANUFACTURER FOCUSED SERVICES

Provide billing, roaming, and geo-location reporting and audit trails forreciprocal sharing and utility reconciliation

Scaleable solution for charge-point installation upgrades

Employ wireless networking capability and multi-carrier redundancy

Design and Functionality Evolution of Charging Stations (Global), 2009-2015

Diagnostic and Billing Services, And Tie-ups With Key Entertainment Industry

Services Will Attract Potential Investors To Expand Charging Stations Functionality

Oyster Type Charging Stations


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Global Market Size and Forecasts


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Electric Vehicle Demand Analysis Potential Sales of 1.2 M in F&S

Scenario

Global Electric Vehicle Market (Sales): Scenario Analysis, 2008-2015

0

400

800

1,200

1,600

2,000

2,400

2008 2009 2010 2011 2012 2013 2014 2015

Thousands

UnitShipme

nts

Optimistic Scenario F&S Scenario Conservative Sceanrio

Scenario's 2008 2009 2010 2011 2012 2013 2014 2015

2020

(% of total

car sales)

Optimistic Scenario 5,103 17,475 94,985 273,116 574,435 863,160 1,439,147 2,266,450 12%

F&S Scenario 5,103 8,911 41,653 117,385 255,151 471,690 791,961 1,226,607 7%

Conservative

Scenario5,103 7,550 25,884 72,895 168,965 273,244 394,605 520,953 4%


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0

100

200

300

400

500

600

Asia Pacific Europe North America Others

Tho

usands

CEV eREV NEV/QC HPEV

60%

28%

12%73%

24%

2%

1%

56%

42%

1%

1%

Electric Vehicle Market: Breakdow n By Region - Sales (Estimates), 2015

1.22 Million

65%

31%

3%

1%

20092015

8,911

3%

14%

63%

21%

68%

3%29%

1%

Japan and China are the key markets for APAC=> likely 80% market share. China expects major share from the local OEMs andpotential for strong growth in India

eREV and PHEVs likely to account major share in the North American market driven by the virtue of demographics and customer drivingcharacteristics => GM & Chrysler key OEMs. On the other hand, CEVs suit the demographics for the Europe.

EV Breakdown By Region- eREV Popular Segment In NA to Account

for 42% Share and CEVs to Account for 73% Share In Europe


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Electric 2 Wheelers e Bicycle, e Scooter & e Motor Bike Market

worth Over 25M Units worldwide

Hub motor drivenpurely by throttle

Regenerative brakingfunctionality in high endmodels

125 Volt NiMH battery

Charging time 2 hours

Acceleration (0 80 kph) 6.8s

Max speed 100 kph

Range 110 km @ 40 kph

Vectrix Electric Scooter

Lead Acid / NiMH Battery

XM 3000 Electric MopedSanyo Enacle

60 Volt lead acid battery

Charging time 7 hours

Max speed 70 kph

Range 80 km

Motor driven by torquesensor on pedal

Regenerative Braking*

Range 35 km / 50 km*

Over 20 million electric 2 wheelers sold globally in 2008

Modest growth expected globally with 22 million sales forecasted by 2010


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Business Model Analysis of Key Industry

Stakeholders


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Business Models Analysis: Future Leasing Models To Sell 75% Of

EVs; The Rest 25% Sold Traditionally

Business Model 1 Business Model 2 Business Model 3 Business Model 4

TYPE Energy Package Maintenance Package Part Subsidy Full Subsidy

COVER Partial battery

lease + Electricity

Energy Package+

Insurance+ Maintenance

Maintenance

Package+ Discount

Maintenance Package+

100% Discount

ENERGY Monthly Bill Flat: Max 2000km/month Flat: 25,000km/year Flat: 30,000km/year

CONTRACT NA NA 4 years 7 years

SUBSIDY NA NA 50% car price Free car

MONTHLY

LEASE

Up to 150 Up to 350 500- 800 ~ 900- 1500

Flexible Mileage Unlimited Miles Max number of miles Pay as you go

Flexible Contract The customer opts for the number of years and flexible mileage- customized lease

Other Possible Leasing models

Source: Better Place, Frost & Sullivan


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Toyota Yaris Vauxhall Corsa Citroen C2 Toyota Prius Ford Focus VW Golf

Small Segment Low Medium Segment

Avg.AnnualS

tanding&Running

Costspervehicle

E.g.,

CyclePeriod

3 years 3 years

Avg.TARGET

COST

~ 29,000 ~ 44,000

Cost of finance (Interest) Depreciation Fuel Insurance Maintenance Tax Ass. Membership Parking Charge

Congestion charge Replacement Parts Tyres

722

1,445

1,197

317

226 131

152

Standing Charges

per Vehicle

329114

349154

Running

Cost

~ 4,000

~ 900

1,313

2,891

1,125

468

27580

152

329114

349154

6,308

1,000

EV Business Models Will Have to Compete With The Internal

Combustion Engine Cost Ownership Structure

Capital Investment = 13,573 Capital Investment = 22,142

Source: RAC

Standing Charges

per VehicleRunning

Cost


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Key Facts and Assumptions Used for Calculating Cash Flow Analysis

for EV Cost Of Ownership

Years Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Assumed EV Sales / yr 3,000 14,500 23,450 38,850 70,700 117,600

Battery Capacity

(Kwh - Avg.)

24 24 24 27 27 27

TOTAL CELL PRODUCTION 1,309,091 6,327,273 10,232,727 19,071,818 34,707,273 57,730,909

Impact of Lithium on

pricing

NO NO NO NO LESS MODERATE

FACTS

KEYA

SSUM

PTIONS

Volume effect on Cost and Pricingof Li-Ion battery

Cell Volume % Price

Reduction

1Mn 5Mn20%

>5Mn 10Mn40%

>10Mn 20Mn50%

>20Mn-50Mn60%

>50Mn70%

Initial Ownership (800/KWh)

Pricing Of Cars Vs Battery Recovery Options

Energy Package% Battery Recovery Schemesand Cost of Car Implications

ROI Potential

1. 150/month

2. 350/month

3. 800/month PartSubsidy

4. 1200/month FullSubsidy

5. 1500/month FullSubsidy

40% 27,680

Part Subsidy 14,000

Full Subsidy 0

Cost of Vehicle without Battery 20,000 (Avg.)


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Source Of Revenue Generation CAGR Calculated over 5 years

1. Revenues from Selling ElectricityCAGR = 242%

(Over 5 years) 390Mn - 400Mn

2. Revenues from selling Charging StationsCAGR = 153%


3. Revenues from Installation & Maintenance of Charging StationsCAGR = 158%


4. Revenues from DiagnosticsCAGR = 153%

(Revenue Opportunity to startfrom 3rd year) 600K - 625K

5. Revenues from Garage ReferralsCAGR = 242%

(Over 5 years)25K - 27K

6. Revenues from Music DownloadCAGR = 127%

(Revenue Opportunity to start

from 3rd year)

150K - 165K

7. Revenues from OthersCAGR = 161%


Utilities Business Model Revenue Generating Opportunities Are Mainly Outside

Selling Energy

Capital Investment

(1styr)

Fixed & Operating Cost

TOTAL: 1.9Bn - 2Bn

640Mn - 650Mn

48Mn - 50Mn

Includes:

New Energy Capacity

Network Recurring Cost

Charging Station Purchase Cost

Installation and Maintenance cost

Logistics, Admin, Selling, general , rental, Marketingand Labour Cost


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State ofCharge

Location ofChargingStation

Booking &Availability of

ChargingStation

POI P ackage

ChargingEnvironment

POIInformation

DynamicRoute

Guidance

Green Routing

Real TimeTraffic

Information

NavigationPackage

V2GCommunication

VehicleIdentification

EnergyDesired

ChargingStatus

Other Services

EV Telematics Package

ChargerVoltage

DemandResponse

CustomerPreference

Opt in/Optout

GeneratingMonthly EVMiles GreenReport for

Fleets

Interior Pre-Conditioning

RemoteVehicle

Diagnostics

Entertainmenton-demand-Information

Fuelling

KeyPlayers

Charging

InfrastructureProviders

VehicleManufacturers

withEstablishedTelematicsOfferings

UtilityCompanies

Utility Back EndInfrastructure

Providers

Telematics Service Package for EVs Tier 1 EV OEMs with Already Existing

Telematics Concepts like OnStar and Teleaid will Create Successful Concepts


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Voice Of The Customer

Customer Feedback On EVs


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M35F-18 25

Methodology: 3 studies were run in parallel to provide a holistic view

of Customers Requirements in Europe

Fleet Drivers Fleet Managers

Driving Habits (including distance

travelled, number of trips per day,

parking location, parking duration,

weight carried etc)

The influence that drivers have in

the purchase of their fleet vehicle

and their attitudes and needs in

relation to Electric Vehicles

170 Interviews

Key decision makers in the choice

of their business fleet vehicles

Understanding of the factors they

used to choose fleet vehicles and

their views and attitudes towardsElectric Vehicles

Forecast EV uptake within

businesses and analysis of key

elements such as price, range and

charging sensitivity

95 Interviews

Sample list of Businesses Interviewed:

France: Alstom, Babcock Wilson, Century 21, Chronopost, DHL, Europcar, Mairie de Marseille, Office Depot, Redcats, Solvay, Total, La Poste

Germany: Adolf Wrth GmbH & Co KG, BMTi Baumaschinentechnik International GmbH, Deutsche Poste, Federal Ministry of Food, Agriculture andConsumer Protection, Fedex, RWE,

UK: Addison Lee, Camden Council, eCourier, EDF, Eon, Marks & Spencers, NHS Trust, Royal Mail, Scotia Gas, Surrey Police, Tesco, ThyssenkruppElevators, GE Capital Solutions

Businesses of Focus (Fleet Drivers & Fleet Managers):Building & Maintenance Public Sector Postal / Courier Car Rental Business Delivery Utility & Telecoms

Consumers

Driving habits, priorities

for new vehicle purchase,

interest in EVs and

response to Business

Models

1982 interviews, over 50%

in London, Berlin, Paris

and Milan


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Study Objectives: Consumer Wants, Needs and Aspirations For Electric

Vehicles and How They Differ Between Private and Business Users

Consumer wants,

needs and

aspirations

Purchase

motivation and

criteria for EVs

Response to

proposed

Business ROI

cases

Importance of

Brand and

model type

EV Design and

function

requirements

What is the purchase motivation behind buyingEVs for consumers private and business users?

What role does the environment and climatechange issues play in promoting EVs

How important are government incentives/taxes forEVs to users and will they continue to be interestedin EVs without them?

How do consumers usetheir vehicle and is theusage pattern suitable tothe capabilities (e.g. range,top speed) of ElectricVehicles?

What design and functionsof vehicles will consumersdemand in EVs?

Will consumers need totrade off certain featuressuch as powerful stereosand air conditioning until

battery technologyimproves?

What are consumersrequirements

surroundingaccessibility e.g.

during work hoursand during weekends

Would they be wiling to pay morefor the vehicle if there are lower

running costs? What is the cost / benefit analysis?

EVs Current VehicleUsage Pattern

Infrastructure

New Business

Models

Which Business Models are customers willing to adopt? Will consumers prefer to purchaseEVs outright or lease the vehicles? What is their response to leasing batteries?

What infrastructure models do consumers prefer charging to home utility bill, pay as youcharge?

How important is branding to consumerschoice of EVs. Do consumers know who

the key players are? Will consumers buy EVs from non

traditional OEMs?

Adaptive

choice based

conjoint

Attributes and features desirability (speed,distance, pricing etc.)


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M35F-18 27

Fleet Customer : Although analysis indicates that the Utility & Telecoms sector

represents the largest potential market, the public sector shows good opportunities

Average

miles

covered

daily

Charging

available at

work? (%

saying yes)

Average

journeys

over 100

miles per

week

Max.

weight

Carried

% of Fleet

Managers

who are in a

position to

consider an

EV now

Total maximum

potential market

in 2015 (France,

Germany, UK)

Building &Maintenance

54 miles 66% 4.1 646kg 42% 23,271 units

Government /

Public Sector32 miles 71% 2.4 285kg 73% 57,586 units

Postal &

Courier

Services

66 miles 65% 4.8 246kg 50% 43,363 units

Car Rental 56 miles 60% 6.8 192kg 56% 28,144 units

Business

Delivery

Services

24 miles 48% 2.6 362kg 41% 71,137 units

Utility &

Telecoms36 miles 50% 3.8 531kg 50% 25,891 units

* Based on 95 interviews with Fleet Managers and 170interviews with Fleet Drivers


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M35F-18 28

UK Profile: Islington Council

Region of Operation: UK, Islington Council

Industry: Government

Total Fleet Size: 700 vehicles

Typicalvehicle usage

patterns

Vehicles usedprimarily during

the day

Usedpractically for

all councilpurposes

Almost allvehicle does

around50 miles per

day

Vehicles backto depot after

businesshours

Capacity and weight requirements

Payload capacity of currently used EV isbetween 1.6 to 1.8 ton which is sufficient for

our operation

Vehicle Type and Acquisition

We are typically trying to increase thenumber of EVs within our fleetwe are asmall borough and EVs would be suitablefor most of our applications.- FleetManager

Potential 1: 80 vehicles replaced every year ; Plans to buy 30

EVs next yearPotential 2: Most of the vehicles in the fleet does short rangetravel ( less than 100 miles per day). Since vehicles are primarilyused during the day issues related to charging duration are less

EV Price and business models: Business case review needed;Over the life of the vehicle we would be prepared to spend around10% to 15% more than what we spend for a standard diesel one.Not more than that

EV Brand: Really interested in a Branded Vehicle

EV Restraint:Cost over life

time

Key EVRestraint::

Technology,Reliability

EV Driver: For

emission andnoise

reduction

Opportunity for Electric Vehicles

Height : 1950 mmWidth : 1850 mmLength : 4100 mmCapacity : 13 to 15 m3

90 % Diesel

7.1% LPG

2.8% Electric Vehicles

0.1% Hybrid

Most of thevehicles leased

Being a small borough, EVs are highly practical here

Key EV Driver:

Small

borough, EVsare highlypractical

Relevant VehicleClass

Make and ModelAverage Annual

MileageService Life Operating Costs

LCV,Cars

Mercedez Benz Ford,PSA, Modec and

Smart EV

10,000 miles 7 yearsFuel: Average 2000 per

annum


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UK Profile: Royal Mail

Region of Operation: UK and worldwide

Industry: Postal & Courier Services

Total Fleet Size: 33,000 vehicles

Requirements:

Would require fast charging (3 phase/ single phase)

160 km range with top Speed 60 MPH

25 kWh Battery Pack

Reliability: warranty, technical support and roadsidesupport

Product and Parts Supply: development ofinfrastructure to support sales and maintenancerequirements

Fuel Source: development of the fuellinginfrastructure

Total Cost of Ownership: Batteries, Maintenance,fuelling' infrastructure, vehicle lifecycle

The coverage of Royal Mail Group is greater than any other postal operator

In the UK, Royal Mail Group operates under the brands Royal Mail, Post Office and ParcelforceWorldwide

The company has strong environmental policy and its high priority is replacing existing fuels withzero/low C equivalents

CO2 reduction target of 50% by 2015 (reduce by 50% in London by 2012)


Key EVRestraint:

Infrastructure

Diesel,60%

Petrol,34%

Relevant Vehicle Class Number of Vehicles Average Annual km Lifecycle

Car DerivedSmall, Medium and Large Panel

Small People CarrierCrew/Post Bus

Heavy Small, Heavy Medium Heavy Large (+trailers)

15,197 cars7,373 cars1,253 cars3,257cars

3,887 trucks (+2,448)

22,530 km29,500 km20,900 km16,900 km

99,200 km

3 years4 years3 yeas5 yeas

4-5 years

Key EV Driver:CO2 emission

reduction

EV Driver:Strong eco-friendliness

policy

EV Restraint:Reliability

andAvailability

EV Driver:Economy

EV Restraint:Cost

HybridElectric

Likely Ownership for Future Vehicles-

by Alternative Fuel Type

Our 33,000 vehicles drive650,000,000 miles per

year, using enoughdiesel to fill 60 Olympicsized swimming pools.

Hydrogen


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UK Fleet Profile: Addison Lee

Region of Operation: Key Operations in London (through affiliates operate a European level courier service)

Industry: Taxi & Private Hire

Total Fleet Size: 2,625 vehicles (All are purchase new from the vehicle manufacturers)

RelevantVehicle Class

Make and ModelAverage

Annual kmService Life Operating Costs Servicing Schedule

Passenger

Cars(average price

20,000)

VW Sharan,Caddy,

Transporter

Ford- Galaxy

Mercedes- E-Class

26,600 to36,000

2.5-3 years, key

motivation for vehiclechange to avoid

maintenance costs

Assets purchased outright and all servicesconducted in-house, including vehicle

servicing, cleaning, purchasing, selling andinsuring

Serviced every 5,000 miles at an in-house service factory at the company.

Potential 1: Replacing 200 bikes for courier services. Providingadditional protection and a higher capability of the cargo. Savings onfuel is the major driver but subject to charging points access.

Potential 2: Replacing a proportion of the car fleet to EVs. Requiressufficient infrastructure before this is feasible and a passenger loadcomparable to a VW Sharan fleet

EV Price and business models: Prepared to pay 3 times subject toreturns over ownership period.

EV Brand: No preference

Specification Required: Min 2 seats, HVAC, automatic drive (espLondon) Security, Battery Monitoring

EV Restraint:Load capacity

(Size andWeight)

EV Driver:Incentives

fromGovernment

Typical

vehicle usagepatterns

Passenger cars are the main chunk of the fleet, used for taxi and rental services. The vehicles are usedon a 12 hour shift basis and are taken home by the drivers.

Light Vans and Bikes (Honda) are used for courier services which operate during the business hoursand carry any load that fits

Key EVRestraint:Lack of

Infrastructure

Key EV Driver:

Fuel Savings


Vehicle Class Overview and Fuel Type

Passenger

Cars 2200

Bikes 200

LCV 125

Diesel 2200

Distance perjob 50-250

milesDriven during12 hour shift Speed of 30-120 kmph

Vehicle returned or taken home

Vehicle parked

at home orbusiness car

park

Capacity and weight requirements

Passenger Cars = min 4 seatsBikes = 30-40 Litre carrying capacity

For reliability, space, low payload, expensive andunattractive

For low CO2, Safety (due to less speed), fueleconomy


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M35F-18 31

Fuel costs are the predominant elements of vehicles Cost Of Ownership in

Utility companies, Public Sector and Business Delivery Services

Question: Please estimate how much you spend on the following per month (Euros)

Interestingly, fuel amounts for up to 2/3 of fleet running costs across businesses interviewed with Business Delivery andPublic sector seeing it take up the largest share of their Cost of Ownership

EVs should aim to address the Fuel and Road Taxing costs for businesses * Based on 93 Interviews with Fleet Drivers who areinvolved in the choice and running costs of their vehicle

Builing &

Maintenance

Bus Delivery Car Rental Public Sector Postal Utility

Fuel Maintenance Financing Leasing Insurance Road TaxRoad Congestion Others

645627

265

546

435396

27%

56%

28%

63%

53% 63%

645627

265

546

435396

27%

56%

28%

63%

53% 63%


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M35F-18 32

Private Customer Sample Split (Europe)

Sample breakout France Germany Italy United Kingdom Total

A 35 8.12% 34 6.53% 55 10.74% 24 5.17% 148 7.68%

B 111 25.75% 104 19.96% 145 28.32% 113 24.35% 473 24.53%

C 136 31.55% 176 33.78% 133 25.98% 140 30.17% 585 30.34%

D&E 71 16.47% 129 24.76% 83 16.21% 118 25.43% 401 20.80%

MPV 58 13.46% 59 11.32% 77 15.04% 48 10.34% 242 12.55%

SUV 20 4.64% 19 3.65% 19 3.71% 21 4.53% 79 4.10%

Total 431 22% 521 27% 512 27% 464 24% 1928 100%

Screening

Sample includes 69% of people that are 'very interested', 'interested' and 'unsure' in terms of considering buying an electric

vehicle with the remaining 31% 'not interested at all' and 'not interested'.

Mix of ow ners of cars (since 2002) and those looking to purchase a new vehicle within the next 3 years. Consumers will be

selected based on the types of cars that they are w illing to cons ider, i.e. A&B, C, D&E, SUV and MPV as we ll as one current electric

vehicle owner.

66 or Older

56 to 65 years

46 to 55 years

36 to 45 years

26 to 35 years

18 to 25 years

Age Segmentation

Other Cities

Rome

Paris

Berlin

London

1 vehicle

2 vehicles

3 vehicles

4 or more

vehicles

City where respondents live Number of Vehicles Owned

Gender Breakdown

54% Males

46% Females


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M35F-18 33

Owners in France & Italy feel they drive further during weekends

4543

49

414445

64

48

55

64

0

20

40

60

80

France Germany Italy United Kingdom Total

Weekday

(one dayonly)

Weekend

(one dayonly)

Q4 On average, how many kilometres do you think you drive in a typical average day? (trimmed mean 5% )

Weekday

(one dayonly)

Weekend

(one dayonly)

Weekday

(one dayonly)

Weekend

(one dayonly)

Weekday

(one dayonly)

Weekend

(one dayonly)

Weekday

(one dayonly)

Weekend

(one dayonly)

Base : Total interviews N=1,928, Note: UK miles converted to km, 1 mile = 1.609344 km

Statistical differences are observed between the kilometres driven on weekdays and weekends. The travelled distance is superior during theweekends. The same way, the average number of kilometres travelled on the weekend is superior in Italy and France compared to other countries.

Average(trimmedmea

n5%)

Note: The presented segments


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M35F-18 34

Adopters of EV's likely to be French or UK, 26-35 and 55+,

Male with higher disposable incomes

Q16 Please rate your level of agreement w ith the following general statements

(Strongly Disagree; Disagree; Somewhat agree; Agree; Strongly Agree)

Who are they

Profile (high values) Share

Country UK, France 37%

Age 26-35, 55+ 52%

Gender Male 32%

CurrentSegment

SUV (want to bedifferent)

50%

28%28% of the sample

29%

22%27%

37%

27%32%

24% 24%

32%

52%

32%

25% 26% 26%30% 30%

50%

France Ge rm any Italy UK 18-25 26-35 36-45 46-55 56-65 66 or > M ale Fe male A&B C D&E M PV SUV

ADOPTERS

EV represent the

future! Innovation is

the key word andeven the

drawbacks are

accepted.

RELUCTANT

High performance

vehicles and well-

known brands are

the first priority.

Dont accept the

environment

argument.

EXPECTANTS

The environment is

a concern. The

brand doesnt

matter, but the costs

are a important

aspect on the

decision making.

Base : Total interviews N=1,479

Index Cronbach's =0.818 Index Cronbach's =0.719 Index Cronbach's =0.727

Analyst notes: To highlight the differences between segments, each individual was classified as belonging to only one (index mean average). Sameaverage Index were removed, has such the eliminated cases as result of previous factorial analysis.

p gresult from the overallknowledge about EV alreadyacquired by respondents(previous communicationimpact as result of the ConjointAnalysis exercise)

This group will also be more concerned about the environment but are likely to see EV's as innovative.SUV owners show a surprising higher interest in EV's and is due to them wanting 'something different'

from other vehicle owners. Cross over EV SUV's will appeal.


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Electric

Vehicles

Strategic Conclusions and Recommendations

Adopt Innovative and New

Business models(For Increased penetration of EVs)

Vehicle Specifications

(Ideal Top Level Vehicle Spec.)

Value Creation

(Opportunity to gain revenues

from innovative service streams)

CEV an Attractive

Segment in EU, REV

in NA

Customer Segments

(Leverage Gen Y)

CEV 60% of Global EV sales

Opportunity to position CEVs globally across key EU& NA cities

Opportunity for A and B Class?? 40% of EVs in NA will be eREVs opportunity

across medium & upward segments

Fleet customers Target new customer age group 500 / Kwh Consumer access to cutting edge

technology (By-wire, Adv, DAS,Connected car etc)

Value Delivery

(Channel to Market.)

Leasing Internet based sales


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36

Discussions

electric vehicles unplugged global marketing analysis

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