techno-commercial analysis of electric vehicle

Techno-Commercial Analysis of Electric Vehicle

Project Code EV112


Project Code EV112

Acknowledgement

I would like to express my sincere gratitude towards my internship mentor Mr. Ashish Kumar for providing

us guidance, support, suggestions and this opportunity to work on project Techno commercial analysis of

electric vehicle. I would specially thank Ms. Neha kumara for constantly motivating throughout the work,

for providing us all the updates and solving our problems in a minimum possible time.

Working on this projects was really challenging as it exposed me to some new terms while it helped me

to expand my knowledge and gain new skills through courses like corporate skill development as they are

really helpful to understand what are the strength and weaknesses and how to work on them in order to

survive in the corporate world. Again thank you to all who helped me directly or indirectly to completer

my work.


Project Code EV112

Executive summary

This is an internship report for project ‘Techno Commercial Analysis of Electric Vehicle’ under

‘Vardhan Consultancy Engineers.’ This report helps to understand the scenario of electric vehicles

in India and insight of Indian automotive market, recent trends in it as well as best performing

vehicles, governments policies and initiatives towards electric vehicles their impact on

consumers and challenges faced by government and consumers in shifting frim ICE to EV’s.

India a country with population with more than 1.25 billion has facing many issues regarding pollution

especially air pollution thirteen out of twenty cities in a world with high pollution is from India that

includes India’s capital ‘Delhi’ impacting health and lowering life expectancy index of people also as India’s

transportation is mainly depend on petrol and diesel vehicles which are the main contributor in this air

pollution. So Indian government is taking initiatives to promote the electric vehicles to reduce the

pollution as well as Indian railways, are also shifting from diesel locomotives to electric locomotives to

reduce the pollution as well as consumption of crude oils as India mainly imports the crude oil so shifting

to electric goanna definitely reduce the cost of travelling.

The initiatives taken by Indian government includes the, ‘National electric mobility mission plan 2020'

with an aim of deploying 5 to 6 million electric vehicles on roads by 2020 including, 4 lakh battery operated

electric vehicles which will help to reduce approx. 120 million barrel of crude oil and 4 tons of CO2 .

Government of India announced ‘Dindayal Scheme’ which provides financial help form government for

battery operated rickshaw this helped in promoting the e rickshaws in country in less than decade the

sales crossed the one billion mark in the Delhi and became the integral part of transport ecosystem. Along

with this department of heavy industry is running scheme i.e. Faster Adoption and Manufacturing of

Electric and Hybrid Vehicles in India under this scheme a subsidy is being provided to 11 cities to launch

electric buses, taxis and three wheelers.

So in upcoming years Indian automotive industry and transportation will be going under major

transportation many automobile manufacturers are even launched their EVs in India that includes Tata

motors, Hyundai, MG hector and Mahindra in passenger car segment. In this report the analysis of

technical and commercial parameters a study covers details regarding category, type and capacity of

motor and battery, powertrain, total range, charging type, modes and power available, models and prices

including taxes and subsidies on it and other features that makes this tata nexon set apart from the other

cars in his segment.

A study, in this report shows that,

It is perfect car in the segment of 10-20 lakhs as of now with stunning features and performance.

It easily beat the other competitors in the range anxiety with total range of 312 km with eco and

sport mode.

It is economical as cost of driving is less than 1 INR/KM the more you drive the economical it

becomes.

Feature to monitor the car from anywhere with app provides more satisfaction.

The number of electric stations should be increased in India as household supply takes more time

to charge.


Project Code EV112

Prize of EV’s can be reduced by reducing the imports and by manufacturing the parts, controllers

and batteries in India.

Electricity should be produced by renewable sources instead using coal for producing which adds

up to the air pollution.

As government is taking initiatives in promoting the electric vehicles but one reason it is not fully

working is because lack of infrastructure, availability of skilled workers, outlets for selling EV’s.

There are less service centers and almost none in rural areas that makes people in rural areas to

buy petrol/diesel cars as they are more reliable for them.

The prices of electric vehicle are more if compared to diesel and petrol vehicles and its common

tendency customer to save money where he can so efforts should be done to reduce the prices.

It could be reduced by making parts in country instead of importing as it will help to increase

numbers of skilled workers and there will be no importing charges.

For manufacturing the parts there should be reliable supply chain of raw materials.

The number of service station is main factor which can affect the sales of EV’s so that it will be

convenient for customer to reach the service station in case if problem arises.

There is also scope of improvements in battery the warranty period on battery should be more

than other competitors as it adds some value and increase the reliability which can increase the

sales.

The combination of electricity and water is dangerous so vehicle with higher water resistant rating

is customers need so there is high tendency that customer will go for vehicle with higher IP rating

vehicle.

As government is pushing hard to promote electric vehicles but this will only succeed when there will be

sufficient availability electricity as rural area struggles to get electric supply for household and agricultural

application and infrastructure for Electric vehicles. Also the focus should be also on upgrading the skills of

existing automobile workers so that they can even work on electric vehicles. This reports focus on the

factors that are mainly responsible for the sales of electric vehicles they are main factors responsible to

build the trust among customers and helps to increase the level of satisfaction.


Project Code EV112

Table of Contents

1.0 Introduction………………………………………………………………………………………………….. 7

2.0 Methodology………………………………………………………………………………………………… 8 1.1 Working Principal…………………………………………………………………………………………………… 8

1.2 Types of EV’s………………………………………………………………………………………………………….. 8

1.3 Types of electric motors………………………………………………………………………………………… 8

1.4 Effects of EV on Environment…………………………………………………………………………………. 9

3.0 Indian EV market…………………………………………………………………………………………..10 3.1 2Ws………………………………………………………………………………………………………………………… 9

3.2 3Ws………………………………………………………………………………………………………………………… 9

3.3 PVs…………………………………………………………………………………………………………………………11

3.3.1 Technical Specification (Nexon EV)

3.3.2 Commercial Analysis (Nexon EV)

4.0 Issues and challenges……………………………………………………………………………………13 4.1 Challenge in design of EV………………………………………………………………………………………..

4.2 Higher price of EV……………………………………………………………………………………………………

5.0 Making EV’s economical……………………………………………………………………………….14 5.1 Marketing strategies

6.0 Conclusion…………………………………………………………………………………………………….15

Reference..........................................................................................................16


Project Code EV112

List of Tables

Table 1. Emission Data of Vehicles………………………………………………………………………………………………………9

Table 2. Powertrain Specification………………………………………………………………………………………………………11

Table 3. Dimension and Weight…………………………………………………………………………………………………………11

Table 4. Model and Price…………………………………………………………………………………..………………………………12

Table 5. Sales (March 2020) …………………………………………………………………………………..…………………………12

List of Figures

Figure 1. 2Ws Market size in India…………………………………………………………………………………..……………………………………….10

Figure 2. E Rickshaw Market (2014-2024) …………………………………………………………………………………..…….11

Abbreviations

FY Fiscal year

EV Electric vehicle

ICE Internal Combustion Engine

2W Two Wheeler

3W Three Wheeler

PV Passenger Vehicle

Co2 Carbon dioxide

SOC State of Charge

HP Horse Power

NM Newton Meter

KM Kilometer

Ltr Liter

Kg Kilogram


Project Code EV112

1.0 Introduction

The air pollution in India has become a serious health issue as per the study based in 2016 approx. 140

million people in India breath 10 times or more toxic over WHO safe limit it contributes to 2 million deaths

of Indians every year the capital of India ‘Delhi” is among the worst affected cities from last few years it

has also seen a fog problems in winter season which led to major road accidents and in festivals like Diwali

the air quality of city becomes worst in 2019 it led to shifting of some patients out of city where they could

get some good quality air sometimes so Delhi tried odd even rule for transportation it was a temporary

solution and this is alarm for other cities and world too that if we don’t look in it then it will led to major

problems in future thus with increasing pollution levels in india the necessity of shifting from petrol/diesel

vehicles to electric vehicles has been increased.

The upcoming era is an era of electric vehicles as the air pollution is increasing, crude oil levels decreasing

and most important global warming pushed world to reduce the pollution and one of the major source of

pollution is toxic gases through vehicles by burning fuel so many countries around the world are

promoting the electric vehicles so people are shifting towards new vehicles entirely based on new

technology and new fuel i.e. electricity. Government is pushing hart towards the EV’s by giving incentives

to consumers by offering tax deductions up to lakhs on the loans taken for electric vehicles under section

80 EEB, by giving subsidies to many cities for shifting on electric buses, taxis and three wheelers.

As per a report, India had only 650 charging stations in 2018, compared to 456,000 in china in same year.

Majority of models have low range so it is challenging task to develop charging stations all across the

country. The EV cars are yet to come to India the models that we see are EC version of the ICE versions.

The whole design process of electric vehicle is totally different that of ICE. For example you can easily

eliminate the space for engine and storage and fuel tank it will give you the more space for use. Another

challenge is the dependence of fossil fuels for power generation. The lack of renewables sources of power

generation will add more load on already stressed coal powered electricity production and another aspect

is if we are doing this to reduce the pollution but coal burning is going to boost the pollution so renewable

sources of power generation are necessary. There are many challenges in India which comes in path of

promoting electric vehicle the electric vehicles need completely new infrastructure, advanced

manufacturing technology, skilled workers which can deal with electrical connection and components as

India is a very big market for electric vehicle automotive industry there are many competitors are present

so to increase the sales of electric cars one needs to have complete information about present situation

of customer and market. So together that information the techno commercial analysis of product (EV) is

done. It gives you insights of current and upcoming market situations so that you can easily plan out the

parameters for products as well as plan some of the trending and working marketing strategies to boost

the sales of your products in the market.

If Indian automobiles industry follows guidelines of NITI Aayog’s estimation is that India will reduce its

petrol/diesel dependence by 156 million tons of oil, resulting in saving up to US $60 billion, with reduction

in carbon emission by 1 Gigatonne by year 2030!


Project Code EV112

2.0 Methodology

The vehicle which uses electric motor instead of IC engine is known as electric vehicle.

Principal: The chemical energy from batteries or fuel cells is converted into the electrical energy and

then electrical energy into the kinetic energy required to drive the vehicle.

The electrical energy is given to motor from battery a current in winding and motors magnets

produces electromagnetic field resulting into rotation of rotor.

2.1 Types of EV’s: a) Fully electric vehicle: They have only powered with motor and batteries. We need to recharge

the battery with charger. It also uses regenerative braking to charge the battery.

b) Hybrid electric vehicle: It has IC engine as well as electric motor and battery. But don’t have

plug to charge battery. Here controllers decide when to use power from engine and electric

motor. Battery is charged by regenerative braking only as no plug is present.

c) Plug-in hybrid: It is similar to hybrid electric except its battery can be charged from outside.

This type vehicles also uses regenerative braking to charge the battery.

2.2 Types of motors used in EV’s are a) Brushless DC motor.

b) Permanent magnet synchronous motor.

c) Interior permanent magnet motor.

d) Permanent magnet switch reluctance motor.

e) AC induction motor.

2.3 Types of batteries used in EV’s a) Lead acid battery

b) Nickle cadmium

c) Lithium ion battery

d) Nickle metal hybrid

2.4 Effect of Ev’s on environment:

Using electric vehicle will reduce the pollution in long term. We will analyze the three types of

emissions i.e. manufacturing, direct emission and lifetime emission.

a) Manufacturing emission: If we look at the data the emission produced by the gasoline vehicle

is less than compared to electric vehicle as major contribution is added by batteries in it.

Larger the size of battery more the emission produced while manufacturing it.

b) Direct emission: The emission from exhaust of gasoline cars emit gases like nitrogen oxide,

Sulphur, and carbon dioxide. On the other hand fully electric vehicles doesn’t have any

exhaust due to absence of engine so there is zero direct emission.

c) Lifetime emission: There will be emission as gasoline engine burns the fuel also if gasoline

engine are not maintained time to time there will be increase in smoke and harmful gases and

we look electric vehicle there will less life time as there is only emission associated with


Project Code EV112

battery nowadays many manufacturers are giving guarantee of 5-8 years in this much year ev

easily win the race against gasoline cars in terms of low emission.

d) Another thing we should take in consideration that the production of electricity should be

renewable rather than coal burning this thing varies from region to region but more the

renewable sources of electricity less the pollution.

Following table shows the full life cycle measure of carbon emission and carbon footprint

during production of four different powertrain vehicles this data is based on 2015 model

vehicle assuming 150,000 km full life travel.

Type of vehicle Estimated emission in production (tons

of Co2)

Estimated lifecycle emission (tons of

Co2)

Percentage of emission

Standard gasoline vehicle

5.6 24 23%

Hybrid electric vehicle 6.5 21 31%

Plug in hybrid electric vehicle

6.7 19 35%

Battery electric vehicle 8.8 19 46%

Table 1. Emission Data of Vehicles


Project Code EV112

3.0 Indian EV Market

3.1 2Ws: It is the largest segment in Indian automotive industry which represents approx. 80 % of

automotive sales in FY2017

Figure 2. 2Ws Market size in India

Target audience:

3 Over 2 million petrol run 2W which are engaged in courier services.

4 Intercity travelers

3.2 3Ws:

3Ws are widely used in India as an affordable means of public and goods transportation over short-to-

medium distances. The kind of pollution that some major cities including the capital of India has gave rise

to awareness among climate change and this changed government policies towards pollution as well as

peoples mindset towards rise of e vehicles in India. Many subsidies are introduced for people to promote

the e vehicles and its success can be seen as India most used vehicle for travelling small distance i.e. auto

rickshaw (diesel) has been replaced according to reports the e rickshaw sales jumped up to 1.5 MN in

India in less than decade faster than any other country it’s all due to those who drove diesel operated

rickshaw’s faced a lot of losses and many problems that resulted in less earning so they shifted one

rickshaw’s one by one.

Government also played an important role by giving subsidies, financial aid and at starting government

also donated e rickshaw’s for promoting among common people who were unable to afford them as

positive results started to came the sales goes on increasing. Some Indian automobile manufacturers like

hero and Mahindra also introduced cheap and Indian made e rickshaw’s all this made an e rickshaw a

success story.


Project Code EV112

Figure 2. E Rickshaw Market (2014-2024)

3.3 PVs:

India is the fifth largest market of passenger vehicles in the world with over 3 million cars sold in

FY2017. Currently there are five electric cars available for sale in India and Tata Nexon EV is one

of them.

3.3.1 Technical specification of Tata Nexon Ev:

Powertrain Specification

Motor 3 Phase Permanent Magnet Synchronous Motor

Battery 30.2 Kwh Lithium Ion

Power 130.7 HP

Torque 245 NM

Range 312 Km

Energy Efficiency 100 wh/km

Table 2. Powertrain Specification

Dimensions and weight:

Table 3. Dimension and Weight

Steering Power steering

Turning radius: 5.1 m

Brakes Front: Disc

Rear: Drum

Suspension Front: Independent McPherson strut with coil spring

Rear: Twist beam with dual path circuit

Charging Standard: CCS2

Estimated Time SOC (10 to 90%) 15 A point plug: 8.5 hours

Estimated fast charging time SOC (0 to 80%): 1 hours

Wheelbase 498 MM

Ground clearance 205 MM

Kerb weight 1400 Kg

Boot space 350 Liter


Project Code EV112

3.3.2 Commercial Analysis of Tata Nexon EV:

Model and Ex-Showroom Price:

Variant Price (INR)

XM 14.99 lakh

XZ+LUX 15.99 lakh

Excite 22.58 lakh

Exclusive 19.88 lakh

Premium 23.86 lakh

Premium with dual-tone 24.05 lakh

Table 4. Model and Price

Government incentives Income tax benefit for individual users: Deduction of interest payments up to 150000 INR

State subsidy and benefits (MH):

a) Subsidy up to 100000 INR on electric four wheel vehicles.

b) Fame subsidy: Incentive of 10000 INR per KWH of battery capacity.

Availability

In first phase it is launched in 22 cities across 12 states at 66 dealerships

States include Delhi NCR, Punjab, Uttar prades, Maharashtra, Rajasthan, Gujrat, Karnataka,

Kerala, Tamilnadu, Telangana, Andhra Pradesh and west Bengal.

Sales in March 2020 compared with other EV’s

Tata Nexon EV 198

MG ZS 116

Kona 11

Table 5. Sales (March 2020)


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4.0 Issues and challenges

4.0 Design of Ev’s Compared to Design of ICE:

Current the models available in India are EC versions of converted ICE versions but that design

does not offer the 100% advantages of EV’s.

a) In electric vehicle design skateboard design approach is mainly used the designing starts from

placing the battery on flat base and then moving up designing for motors placements,

transmission from motor to wheels and if the motors used are of alternate current them there is

additional unit of filter and rectifies.

b) There is also design of controller which will change the frequency and control the vehicle and also

decide when to use regenerative braking.

c) The main concern in design is safety of battery and its cooling because battery can burst if it

overheats or in case of accidents it should remain safe.

d) The ICE conversion into Ev’s does not utilize the space as major components like engine,

transmission shafts and fuel arrangements will not be present but in EV’s their allocated space is

present so it fails in space utilization.

e) Another aspect is safety if we see many passenger car has its engine which is heavy weight

component in the front of vehicle but in same version of Ev’s the engine is not present and battery

is mostly place in the middle of vehicle and near to ground to maintain the CG of vehicle so that

it will help the vehicle to increase rolling resistance of vehicle.

4.1 Higher Price of EV’s a) The industry is changing for electric vehicle because new technologies and new method are

required for manufacturing the electric vehicle. So companies are investing hugely in research

and development it is also important factor in adding into overall cost.

b) Unlike conventional workers to manufacture EV’s companies need skilled workers to work with

new technologies and other electronic parts like controller, processors and other connections.

c) Batteries is one of major cost addition in EV’s as there is no proper supply change for raw material

required for batteries and there are also less firms manufacturing them. R and D is also done on

batteries to increase capacity, life, efficiency while reducing size and weight.

d) Mining of lithium, lead and other material required for batteries is also costly.

e) To reduce the price production should be done locally like china does so that there will be no

import and export charges that will result in reducing overall cost of vehicle by reducing it to some

extent.


Project Code EV112

5.0 Making EV’s Economical

Provide Charging Infrastructure

The problem of range anxiety and limited battery capacity can be easily solved by providing charging

stations per several kilometer. This will help to reduce the battery size and also the price associated

with it.

Increasing Efficiency of Vehicles

By doing research and developments the efficiency of vehicle can be increased this will allow to travel

more distance on smaller and cheaper batter pack. Energy efficiency can be increased by using

efficient electric motors, by reducing weight of vehicle, enhancing the aerodynamics of vehicle, using

better tires this will definitely reduce the size of battery pack

Appropriate Battery Chemistry

As battery dominates the cost of electric vehicle the goal should be to manufacture battery with

optimized cost and chemistry favorable to Indian environment and manufacturing those batteries in

India.

Recycling of Old Components

In India we should have recycling facilities so that we can secure the materials like lead, lithium,

manganese so we it will eventually decrease the price of battery.

Exploring New Battery Chemistries

To reduce the cost research should be done on various materials and their chemistries to achieve max

output, efficiency and long life of battery.

5.1 Marketing of Economical EV’s

As there are lot many doubts and fears in consumers that stop them shifting from ICE to EV a

good marketing strategy should target those points which will show the limitations of ICE and

advantages of EV clearing the myths and doubts from consumers mind.

a) Comparison Strategy: Show the difference between the cost of EV and gasoline vehicle as

well as focus on per kilometer costs

b) Saving Strategy: As many countries government have subsidies for electric vehicles so let

customer feel that he is having too many saving or getting discount if he get EV.

c) Proud Feeling: Advertise in such a way that the customer should feel is doing very great

work by purchasing the EV. Show the pollution bad effects on environment, animals and

humans add the taglines such as environment warriors, pollution fighters etc.

d) Highlight Features: Highlight the main features of EV and connect them with price. Like

range, charging time, innovations, smart modes etc.

e) Associate Comfort: Portray as like it has too much comfort compared to other gasoline

vehicles like no frequent services, low maintenance, less noisy, more reliable etc.


Project Code EV112

6.0 Conclusion

The study reveals that India has potential to grow as an leader in manufacturing of electric vehicles as well

as it is one of largest markets in the world so in upcoming years there will be lot of competitors in India in

all segments of electric vehicle entire transportation eco system is on the verge of change and this change

will affect other sectors like energy generation, fossil fuels and manufacturing of components required

for electric vehicles. Current India automotive industry will undergo major changes as the technology and

components are going to change for the same consumer so industries have to come up with innovative,

economical and safe options in the market there will be lot of competitors so market insights will be very

useful while designing the new vehicle and its parameters. Current infrastructure and policies are not

sufficient there should be analysis and developments in it as time passes along with this research and

development on main components like battery, motor and design should be focused. Workers skill is also

more important they should get sufficient training regarding it.

India will gain a lot of things by switching to electric vehicles, its oil dependence will reduce drastically.

ICE vehicles were major contributors in air pollution with EV’s definitely there will be change in air quality.

There is opportunity available to start manufacturing the various components in India itself instead

importing it will lead to low cost as well as employability in India. But there are some challenges in

achieving this goal that can be tackled with innovations, policies, infrastructure and latest technologies.


Project Code EV112

Reference

https://en.wikipedia.org/wiki/Electric_car

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.quora.com%2FWhere-is-a-bar-

graph-comparing-air-pollution-in-Delhi-in-the-last-5-years-available&psig=AOvVaw1NM3k1Eu-

ZXdw2v0JkYtR_&ust=1592313829729000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCLiUo6

31g-oCFQAAAAAdAAAAABAF

https://niti.gov.in/writereaddata/files/document_publication/EV_report.pdf

https://www.psmarketresearch.com/market-analysis/india-electric-rickshaw-market

https://www.rushlane.com/tata-nexon-electric-march-2020-sales-12358300.html

https://en.wikipedia.org/wiki/Environmental_aspects_of_the_electric_car

https://emobility.araiindia.com/wp-content/uploads/2018/06/NITI_Aayog_Report.pdf

https://en.wikipedia.org/wiki/Electric_car

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.quora.com%2FWhere-is-a-bar-graph-comparing-air-pollution-in-Delhi-in-the-last-5-years-available&psig=AOvVaw1NM3k1Eu-ZXdw2v0JkYtR_&ust=1592313829729000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCLiUo631g-oCFQAAAAAdAAAAABAF




https://niti.gov.in/writereaddata/files/document_publication/EV_report.pdf

https://www.psmarketresearch.com/market-analysis/india-electric-rickshaw-market

https://www.rushlane.com/tata-nexon-electric-march-2020-sales-12358300.html

https://en.wikipedia.org/wiki/Environmental_aspects_of_the_electric_car

https://emobility.araiindia.com/wp-content/uploads/2018/06/NITI_Aayog_Report.pdf

techno-commercial analysis of electric vehicle

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