Electric Vehicles in INDIA

IE7830: Management of Technology Change

Sreeshanth Pillai

Agenda Background Introduction Features Attributes of Technology Intended Adopters Potential Resistors Diffusion Curve Contextual Analysis Recommendations What Next? Reference

Background India ranks 3 in the Most Polluted country category

Increasing Fuel Price

Crowded Public Transport

Congested Roads

Alternative fuel at an expense of Boot space

Introduction Mahindra & Reva launched e2o in March 2013

Between $12,000 - $16,000

Max speed of 50 miles/hr

Range – 60 miles in one full charge

Charging time – 5 hrs for full charge / 1hr for 12 miles

Features of Mahindra Reva e2o Clean1. Zero emissions2. Born in a Green Plant3. Solar Charging

Connected1. Via Mobile Apps2. Remote Diagnostics3. Updates via SMS, email, etc

Features of Mahindra Reva e2o (contd) Convenient1. Automatic Transmissions2. Easy Home/Office Charging3. Home Service

Clever1. Intelligent Energy Management Systems

(iEMS)2. Driver Information System3. Safe Mode4. Regenerative breaking

Attributes of TechnologyRelative Advantage:

Positive attributes

a) Eco friendly

b) Replaces expensive fuel

c) Low maintenance

d) Automatic Transmission

Negative attributes

a) Costs (both EV and Battery)

b) Poor Battery Range

Attributes of Technology (contd)Compatibility:

Positive Attributea) Compact Sizeb) Did NOT change the Paradigm of Driving

Negative Attributea) Ensuring battery condition before a driveb) Long drives are not possible

Attributes of Technology (contd) Complexity

a) Two door modelb) Charging of the car at regular intervalsc) Availability of Charging stationsd) Availability of select service centers

Observability

a) Advertisements in Media and Social Networking sitesb) International Motor Showc) Reviews of the car in Blogsd) ‘electric’ logo

Attributes of Technology (contd)

Trialability

a) Free Test Drivesb) Availability in Rental Companies like

‘Carzonrent.com’

Intended AdoptersIntended Adopters Why will they adopt?

Early BirdsRange of technology enthusiasts would be the early adopters for such products.

Excessive travelling upper middle class employees

They can travel as far as they can without worrying about the steep increase in fuel price.

Eco Conservatives

As there won't be any emissions neither the car depends on the natural resources, this car would be the best bet for Eco Conservatives.

Taxi Company

An upgrade from the local taxis would definitely attract commuters who can commute at lower price.

New Delhi Residents

As the government will provide 29% subsidy to the capital city residents, this would attract a lot of customers.

Car Reviewers

Shows and Magazines like TopGear, could be the initial adopters. Diffusion of Innovation up to a certain degree depends on them too.

Individuals with higher income than average

As they can easily afford this product they are one of the potential adopters.

Individuals with higher educationEducation play an important role for an innovation to reach to an individual.

Potential Resistors

Potential Resistors Underlying Assumptions

Value Driven Customers

As the cost of the vehicle is higher than other gasoline powered cars, people may think twice to buy this car.

People with higher standard of living

On the assumption that, this car would come at a cost of luxury that other high end car models possess.

Orthodox thinkers

It will be problematic for them to adhere to battery powered cars than the conventional gasoline cars based on the assumption that this car would have lower performance and ergonomics.

Diffusion Curve

2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 20330

10

20

30

40

50

60

70

80

90

100

Sale of Mahindra Reva e2o

Year

Rate

of

Adopti

on in %

Current state of Innovation

Contextual Analysis

Organizational Attributes:

1. Major breakthrough in Alternate Transport Solutions

2. As being the only manufacturers of EV’s in India

3. Considered as the future of mobility

Societal Attributes:

1. No dependence on costly fuels (petrol/diesel)

2. Do not have to rely on over-crowded public transport system

3. Best alternate for within the city commute

What hurts adoption?

1. Costs (EV and Battery)

2. Battery Range

3. Availability of Charging station

Recommendations Research on Cheaper Battery with longer range

Changing 2-door model to 4-door model compact car

Expediting installation of charging station in every city and should be strategically located

Ensuring availability of service centers with trained technicians

Demand Government to provide incentives to other states as well

What Next?Formula E Racing

Reference www.mahindrareva.com – Official site of Mahindra Reva www.mahindra.com – Official site of Mahindra & Mahindra www.teambhp.com – Unbiased review of Automobile in the Indian

Market www.insideevs.com – Largest Internet property covering only plug-

in vehicles www.fiaformulae.com/teams/mahindra - Formula E Racing website

Thank you for your attentionQuestions / Comments

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