Following a cabinet meeting, Delhi Chief Minister Atishi on November 28 announced an extension of the Delhi Electric Vehicle (EV) Policy till March 31, 2025. The Delhi cabinet has agreed to prolong the EV policy and execute subsidies and road tax exemptions that have been languishing since January 1 due to poor air quality, Atishi said at a press briefing.
Electric vehicles (EVs) have not been eligible for any road tax exemptions or subsidies for the last ten months. However, she stated that EV owners will be eligible for subsidies beginning on January 1, 2024. Furthermore, EV purchases will no longer be subject to road tax. The CM further stated that the EV program has been extended till March 31, 2025.
Focus of Delhi EV Policy
The Delhi EV strategy is noteworthy since it aims to have 25% of all new car registrations in the state be EVs by 2024. “12% of total registered vehicles in the region were EVs—the highest in the country and double the national average of 6%,” reported the CM in FY24.
This comes as the Centre prepares to launch the third version of the FAME (Faster Adoption & Manufacturing of Electric Vehicles) programme shortly. HD Kumaraswamy, the federal minister for heavy industries, announced in September that the eagerly anticipated FAME-III plan would be launched in two months.
Current Electric Vehicle Scenario in Delhi
Electric vehicle (EV) sales in the nation’s capital have apparently been negatively impacted by the Delhi government’s notable decision to remove the road tax exemption for electric vehicles and two-wheelers earlier in September of this year. Due to the festive season sales discounts, the number of electric two-wheeler registrations in India increased by about 73% month-over-month (MoM) to surpass 1.2 lakh units in October of this year. According to Vahan data as of October 30, sales of two-wheeler EVs reached 1.4 lakh units, the highest level since March of this year, just before the Centre’s FAME-II programme came to an end.
Current EV Vehicle Scenario in India
The electric vehicle (EV) market in India is expanding quickly thanks to government subsidies, growing environmental awareness, and technology breakthroughs. India hopes to dramatically boost EV adoption through programmes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, transforming its transport system in the direction of sustainability and innovation.
India’s goal is to increase the percentage of EV sales to 30% for private automobiles, 70% for commercial vehicles, 40% for buses, and 80% for two-wheelers and three-wheelers by 2030. By 2030, there will be 80 million EVs on Indian roadways, which is an ambitious goal. Additionally, India’s ‘Make in India‘ campaign aims to produce all EVs domestically.
The Automobile Industry is one of the giants in the global economy. It has been around forever and has gone through its fair share of changes and innovations over the years, however, one of the most influential and sustainable innovations is that of Electric Vehicles.
And although this concept floated since its invention by Robert Anderson in 1832, it was put into the mainstream spotlight by Tesla in 2008 with its first Electric Car, the Tesla Roadster. No major company thought of taking up this concept before it was in many ways made cool by Tesla despite it being incredibly sustainable and way ahead of its time.
Many experts in the industry have speculated about the EV Concept and as a result, Automobile Industry as a whole would not have been such a hot topic if Tesla was not the driving force behind it.
Although Tesla has not seen a profitable year yet, it has had many profitable quarters and sticks to its vision of making Electric Vehicles affordable for almost everyone.
On 1 July 2020, exactly 17 years after its incorporation, Tesla became the world’s most valuable automaker with a market capitalization of $206 Billion, surpassing Toyota. But how did Tesla start? Who was behind it? What makes this futuristic company different from the rest? Where will it be after 10 years? Let us find the answer to these questions.
The founders of Tesla- Martin Eberhard and Marc Tarpenning
Originally known as Tesla Motors, Tesla was co-founded and incorporated on 1 July 2003 by Martin Eberhard and Marc Tarpenning. The influence behind Tesla was GM’s failed attempt at EVs in 2003 despite the vast potential and high efficiency of battery electric cars.
The third employee was Tom Wright and in February 2004, Elon Musk whose name today is almost synonymous with Tesla contributed $6.5 Million and became the chairman of the BOD. Martin Eberhard was appointed as the CEO and JB Straubel joined in May 2004. After a lawsuit settlement in September 2009, all three original employees can call themselves co-founders.
Tesla’s initial goal was to start the production of premium sports cars for early adopters and after securing a respectable customer base, move into the mainstream vehicles like sedans, Trucks, and luxury cars. The first car produced by Tesla was the Roadster in 2008.
Musk’s Four Round Investments
Elon Musk- the current CEO and the largest investor in Tesla
First Round
The Series A Investment in February 2004 included Company Technology partners along with different ventures and private investors.
Second Round
The second round investment was worth $13 Million and it included the addition of Valor Equity Partners to the funding team.
Third Round
The third round investment was co-led by Musk and various technology partners. It consisted of $40 million in May 2006 along with Tech Partners. This round also included investments from Google, and eBay among others.
Fourth Round
The fourth round of investment included another $45 Million in internal investment and the total investment went up to $105 million through private financing.
Marketplace and Stocks of Tesla
Tesla launched its initial public offering (IPO) on NASDAQ, the second American car company after Ford Motor Company to do so.
Tesla became the world’s second most valuable automaker with a market capitalization of $104 Billion and on 1st July 2020 the most valuable by reaching the milestone of $202 Billion.
Despite the above milestones, Tesla has not seen an overall profit in any financial year. At the end of 2019, it posted a loss of $862 Million on revenue of $24.6 Billion.
However, this fact is often overlooked as Tesla leans towards a societal concept rather than a profit-making one.
Different Strategies Implemented by Tesla
Business Strategy
Tesla follows a typical business strategy like the technological sector, i.e, targeting early adopters with a high price and gradually lowering the price as they move on to the bigger markets. For example, Tesla’s First model, Roadster was of a lower volume and higher price compared to Model X and Model Y.
Production Strategy
Like Musk’s other projects, Tesla’s production strategy includes high degrees of Vertical Integration which is rare in the automobile industry, as companies outsource most of the components from their suppliers.
Sales and Marketing Strategy
Instead of a conventional dealer network, Tesla opts to sell its vehicles online through company-owned showrooms. It offers the customers an option to customize their desired vehicle. Tesla does not rely on a heavy advertising policy Elon Musk with his massive Twitter following is an unofficial marketing manager.
Technological Strategies
Tesla relies on heavy electrical technologies to get its production done. As a vertically integrated company, they design batteries, motors, glass, and innovative models like Autopilots.
As of 2020, Tesla sells three car models, Model S, Model X, and Model Y.
The Unveiled models include Roadster 2020 and the highly awaited Cybertruck. These products have different versions to them based on affordability. Musk said that there will be more innovative models down the road which would be more affordable than the current ones.
The Journey of Tesla to Emerge as the World’s Most Successful EV Brand
There are several car manufacturing companies found across different parts of the World. However, when we talk about Tesla, it does stand out from the rest of the companies due to the initiation of something different.
Tesla is quite popular for its EV model cars which have created a path for Tesla to emerge as the World’s most successful brand.
To achieve this tag, Tesla made every step resourceful. Tesla brand was started with a sample model featuring cars with a high cost and few models. This invention was to just ensure that myth revolving around the EV cars can find their dissolving points. For the start, Tesla manufactured just 500 units in a year and was responsible for many revolutionary programs.
The next model introduced by Tesla was about changing the manufacturing units to a greater scale and on contrary, it decreased the price of the model. This model was a great way to give head-on competition to the other luxury brand models.
Tesla also connects directly with its customers rather than depending upon the franchisee network. Tesla sells its products directly to customers and has a web-type global network to get it settled as a global brand.
Tesla mainly focuses on the customer buying experience to get more recognition from people. Several showrooms and galleries are placed at multiple locations by Tesla to have a much-organized system.
Tesla Showroom
Apart from this, Tesla has a good marketing strategy and a well-developed plan to sell its brand. Tesla also has a good financing backup and a few well-known investors. All these things make it possible for Tesla to emerge as the World’s most successful EV brand.
How Tesla Is Dominating the Ev Industry?
We can assume that Tesla is dominating the EV industry based on the fact that the EV sales of Tesla are approximate 2.3 times higher than that of other brands as per Morgan Stanley analyst Adam Jonas. The rate of growth observed by Tesla in the EV industry is almost double that of any rival brand.
If we look at the Tesla market in the US, it is safe to say that the EV market in the US is highly dominated by Tesla for years now. For that instance, the EV cars of Tesla accounted for 79% of the overall rate of new cars registered in the US during 2020 and 69.95% of the newly registered car for the year 2021.
If to believe the available facts and data, it can be estimated that Tesla will still keep on dominating the EV industry for a few more years but with the condition of increasing competition.
US Electric Vehicle Sales
Problems With Tesla Models and the Future Ahead
A 2025 Tesla Model S
Despite having an innovative approach and putting customer satisfaction ahead of profits, Tesla has come up short on various aspects.
The durability, handling, and repairs cost are some of the quality-related problems that come with a Tesla model. The repairs and maintenance costs are very high and as a result, so are the Insurance costs. Apart from this, Tesla repeatedly comes up short in meeting deadlines regarding production, but this can be attributed to their decision on Vertical Integration.
Whatever the case may be, the company fixes some of its flaws with every new model and with its futuristic.
Tesla is the first brand to introduce electric vehicles on the roads. The models designed by Tesla also stand out from others due to their characteristics. Tesla created a safe way for the EV models to run on roads and also made them available at cost-effective prices.
With its uniqueness, Tesla is now dominating the EV industry and has successfully evolved as an EV brand across the world. The above article contains information like the history of Tesla, Investors and stock shares of Tesla, strategies planned by Tesla, the future of Tesla, and a few other basic information.
FAQs
Who are Tesla’s competitors?
Tesla’s competitors are Rivian Automotive Inc. (RIVN), Lucid Group Inc. (LCID), XPeng Inc. (XPEV), Li Auto Inc. (LI), etc.
Why is Tesla so famous?
Tesla is majorly famous because of its cutting-edge technology involving battery technology and electric powertrain.
Is Tesla the biggest car company?
The company is the biggest in the world and can be defined in many aspects. If we talk about the profit, then yes, Tesla is counted among the eight largest car companies across the world.
What is the rank of Tesla in the world?
Tesla falls at the rank of 65 on the “Fortune 500” list for the year 2021.
The concern for the environment had led people to increase their interest in electric vehicles. Not only this, but the cost of fuel can also decrease as all it needs are electric-drive components. As per reports, the worth of the electric vehicles market would be INR 475 Billion by 2025.
The coming decade is anticipated to be the ultimate decade for the future of electric cars in India. With battery amounts reportedly falling up to 73%, electric-powered vehicles are anticipated to be as reasonably priced as gas-powered vehicles within the foreseeable future. The International Energy Agency cites that there would be 70 million electric vehicles by 2025. Till 2026, the EV market is scheduled to grow at a CAGR of 36%.
Nations such as the UK, France, Norway, and India are about to undertake e-mobility on a bigger scale. India has loads to the advantage of the massive adoption of e-mobility. Under the Make In India program, the production of e-cars and their related additives is anticipated to increase the percentage of production in India’s GDP by up to 25% by 2022. On the monetary front, large-scale adoption of electrical cars is projected to assist save $60 billion on oil imports by 2030.
In this article, we will talk about the future of Electric Vehicles in India. So, let’s get started.
Current Situation of the Electric Vehicle Market in India
Currently, 84% of India’s oil name is fulfilled through imports. The price of gas might also additionally need to fall, assisting an electric-powered car owner can save as much as Rs20,000 for each 5,000km traversed. Finally, electrification will lessen vehicular emissions, a key contributor to air pollutants which reasons an average of 3% GDP loss each year.
The electric vehicles industry in India debts for 22% of the country’s overall production output and is the sixth-biggest industry in the world. Reports suggest that EVs can play an essential position in growing the percentage of production in India’s GDP from 15% (currently) to 25% through the year 2022.
Indian Electric Vehicle Market by Vehicle Type
Future of Electric Vehicles in India
Globally, the cost for lithium-ion batteries is approximately $250/kWh, this amounts approximately to Rs5.7 lakh in battery charges alone. Currently, lithium-ion batteries account for 50% of the price of an electric-powered car, making them costly as compared to conventional automobiles.
Safety of the batteries from explosion act as a spanner for Li-ion batteries. A predominant hurdle for EVs in India is charging, or the shortage of charging stations can also be considered, thereby making them impractical or tons less possible for lengthy distance drives. Furthermore, some EVs aren’t as speedy as traditional gas-powered motors.
Most purchasers in India might purchase an electric-powered car by 2022, however majority of them additionally trust that it may also now no longer be available till 2025. Consumers in India are searching for a decreased amount for EVs than purchasers in different nations, with the worldwide common tipping amount for EVs being $36,000 (around Rs27 lakh). Castrol took over 1,000 purchasers, fleet managers and enterprise professionals throughout India.
At a critical juncture, while all nations are engaged in liberating Mother Earth from the claws of carbon emissions, and CO2, India can play a leadership position by switching over to EV mobility to make the country a greener and cleaner ecology.
Impact of COVID-19 on the Electric Vehicle Industry
During the pendency of COVID-19, we watched how the surroundings progressed due to the fact of lesser emissions from petrol and diesel-run motors and industries in India. In many cities, the smog absolutely vanished. In many components of India, people should even view remote mountains that were now no longer possible for them to look for years due to the fact of the atmospheric stumbling blocks created due to the emission of the smoke from fossil-gas run motors. By switching over to clean-inexperienced electricity run EVs, we will make skies crystal clear, permitting us to study remote places. EVs keep the critical thing to everlasting answers of a better, cleanser India for the sustainability of its populace.
Range is the key factor here ie.15km on average, whilst a city taxi also can additionally do 300km daily. In an excellent world, we might have a smaller battery percentage and definitely need to recharge periodically. In practice, taxi and fleet motors can earn money overnight, or even personal customers can also additionally have limits on charging options, without fast charging.
An infrastructure for fast charging an EV calls for a remarkable deal of extra strength than 15 amp sockets, which may provide approximately 3 kW of strength, so 35 kWh takes nearly 12 hours. Unlike the US, maximum Indians don’t have a private garage. Hence, full-size and company-agnostic public charging infrastructure will become a key coverage choice.
Indians are famously price-conscious. This is why clients love diesel cars, notwithstanding their better MRP and pollutants relative to their petrol counterparts. The value of EVs is based upon power price, which varies significantly. At Rs7/kWh (kilowatt-hour) of strength, they value approximately Rs1.1/km This saves clients riding 5,000km steadily over Rs20,000 annually, and ensures a remarkable deal. With the Make In India initiative, there is a chance we will see an increase in the making of EVs.
The capture is the advance value. EVs are expensive, ordinarily due to the battery. A single kWh of power is sufficient to head approximately 6 km, so a 200km “complete tank” variety calls for approximately 35 kWh of battery. Today’s charges for lithium-ion batteries are approximately $250/kWh globally, which involves Rs5.7 lakh in battery prices, with the exception of import duties. Even with an eight-year lifespan and a 12% interest rate, justifying the battery prices on steady with kilometre economic savings. However, whilst battery charges fall to $100/kWh, as projected some years out, EVs can emerge as a recreation changer.
Conclusion
The electric vehicle market will definitely see a surge in the coming years. With the concern for the environment and the surging price of fuel, the need for electric vehicles has increased and will do the same in the future. If proper infrastructure is provided and if it becomes affordable and has access to every consumer group, the EV market might become one of the biggest industries in the country.
FAQs
Who is leading the Electric Vehicles sector in India?
Tata Motors is currently leading the EV sector in India.
Is EV will be successful in India?
Electric vehicles will grow at a CAGR of 36% till 2026.
Are electric cars faster than petrol cars?
Electric cars can accelerate faster than petrol cars but they lack the top speed.
As we all know, two-wheelers constitute a considerable part of the Indian motor vehicle ecosystem and are an integral mode of transportation in some regions. Though two-wheelers have been around since the early 20th century, it is only a decade old that they have started to make their way into the daily lives of millions of Indians.
The number and types of two-wheelers available in India have expanded to include scooters, motorcycles, mopeds, and motorcycles that are mostly fuel-driven. On the other hand, there is a relatively small but fast-growing segment of electric two-wheelers, also known as e-two-wheelers.
These are gaining popularity and have been making headlines due to the apparent benefits they bring with them. But how long will these e-two-wheeler companies sustain? Well, this must be a question that every potential buyer has in his mind when he or she decides to buy one.
In the recent past, though, India has made it clear that they want nothing less than 7 million EVs on their roads by 2030. This seems like a tall order, and India will have to exert a lot of effort towards making it possible. Let’s check out what Indian Electric Two-Wheeler Industry looks like and is it able to survive;
The electric two-wheeler industry has been growing steadily over the last few years, but it still remains a niche market. The first electric scooter was introduced in 2013 by a startup called Ather Energy, and since then, there has been no looking back.
The company sold 1,000 units of its Thunderbird in 2016 and manufactured over 3,000 units of this model in 2017. The company also plans to launch an electric motorcycle in the next couple of years and plans to sell around 100,000 units of this model. This is just one of many brands that have begun manufacturing electric two-wheelers in India.
The electric two-wheeler industry is at its nascent stage in India. The Government has recently announced a plan to make all vehicles driven by electricity by 2030.
Support by the Government
The electric two-wheeler industry has been the center of attention for quite some time. The main reason for this is the rising pollution and the need to reduce it. The move toward electric vehicles is a step in the right direction. However, many factors need to be taken into account before making a decision on which vehicle to buy.
It has been announced that the Indian Government will invest $60 billion in electric vehicle production by 2025 as part of their “Make in India” campaign. This is expected to boost sales by 50% over the next five years.
The number of electric two-wheelers sold per month has steadily increased since 2013, when they first hit the market, with only 1,000 units being sold that year. Still, this figure has now climbed to over 20,000 units per month, according to recent reports published by SIAM (Society of Indian Automobile Manufacturers).
The Indian Government aggressively pushes the electric vehicle (EV) agenda to reduce pollution and boost green energy. It plans to achieve the target of 100% electric mobility by 2030. The Government has also announced several incentives, such as reduced GST and better infrastructure for EVs, among others.
The industry is still at its nascent stage in India, and the demand for electric two-wheelers is mainly driven by e-commerce companies like Flipkart, Amazon, etc. However, growth in demand for electric vehicles has been slow due to poor infrastructure, lack of awareness, high cost, and customer preference toward conventional bikes over electric bikes.
Growth of Electric Two-Wheeler Companies in India
Electric two-wheelers are gaining momentum in the Indian market. Several companies have entered the electric two-wheeler segment in the last two years. These include Hero Electric, Ather Energy, Zoomcar, Ola Electric and TVS Motor Company.
Some of these companies have already launched their products, and some others are about to launch them soon. This has led to increased competition in the industry which will benefit customers in terms of better products at lower prices. However, there are still some challenges that these companies need to overcome before they become profitable entities.
What Is Propelling the Growth of Electric Two-Wheelers?
Electric two-wheelers are a relatively new concept in India. The idea is not new, though, with countries like China have been using electric scooters and bikes for a few years now. Indian cities have been witnessing a surge in the number of people opting for public transport due to traffic congestion and pollution levels, which has led to the increased usage of electric vehicles.
The need for an alternative method of transportation has gained more importance than ever before. The number of people opting for electric two-wheelers as their primary mode of commute has grown manifold over the past few months, especially after the Delhi government announced its plan to buy 10,000 battery-operated bikes from BSF to be used by its security personnel.
The major factors driving this growth are:
Increase in disposable income
Government support and subsidies
Increasing awareness about pollution and climate change.
What Is Restricting the Growth of the Electric Two-Wheelers?
Electric two-wheelers are gaining popularity in India. The electric two-wheeler industry is anticipated to grow at a healthy pace in India and is expected to become a USD 3 billion market by 2025. However, some factors are restricting the growth of the industry in India:
High Manufacturing Cost
The manufacturing cost of an electric two-wheeler is high compared to conventional bikes due to the use of expensive lithium-ion batteries and other electronic components. The cost of manufacturing an electric scooter or bike is around USD 1,600 while manufacturing a conventional motorbike is around USD 500-600.
Experts believe that if the cost of raw materials used in making electric bikes comes down, then it can help reduce the overall manufacturing cost significantly.
Limited Availability of Charging Infrastructure
There is limited availability of charging stations for electric two-wheelers in India which will restrict their growth in the next few years unless considerable investments are made by manufacturers and government bodies to build charging infrastructure across cities and towns across India.
There were only about 1,000 charging points across India as of December 2018, which means that there is only one charging point per every 100 km, making it difficult for users to charge their batteries while commuting between cities or towns.
Low Battery Life
Another challenge facing this industry is that its batteries do not last long enough before they need charging again; often, they only last 10 kilometres or less before needing recharging again.
The Hype Surrounding the Two-Wheeler Industry
The hype surrounding the industry is more than just a marketing gimmick. The Government has been actively promoting the use of electric vehicles in India. The Government believes that if many commuters adopt these vehicles, it will help reduce pollution. It also hopes that this will lead to economic benefits by reducing fuel imports and improving job creation.
The Government has set up several incentives for such purchases to encourage people to make this switch. For example, buyers get an additional income tax deduction under Section 80EE of the Income Tax Act.
This gives them a deduction of Rs 1 lakh on an electric car and Rs 50,000 on an electric scooter or motorcycle. Thus, if you bought a new two-wheeler that costs over Rs 2 lakhs after March 31st, 2022, you can claim as much as Rs 50,000 as a deduction from your taxable income for each vehicle purchased during the financial year 2021-2022; this is double what you could claim in FY2020-2021.
Future Trends of the Two-Wheeler Industry
The electric two-wheeler industry is growing at a fast pace. Many companies are trying to come up with new products and services. The future trend of the electric two-wheeler industry is that it will continue to grow and become more popular in the future.
The following are some of the promising trends that can be expected in the next few years:
Increase in the Number of Electric Bikes
The number of electric bikes and scooters will increase in the coming years as more people are interested in them because they want to save money on fuel, reduce pollution, and many other reasons.
More People Will Use Electric Scooters or Bikes for Commuting Purposes
Commuting is one of the major drivers of why people are using electric scooters instead of cars or public transportation. They do not have to worry about intense traffic jams or finding parking spaces when they commute using an electric bike.
Increasing R&D Investments
The major players across the globe are investing millions of dollars in R&D activities to develop new technologies and improve existing ones. For instance, Shimano Inc., a Japan-based company, has focused on developing new products such as electronic shifting systems, road bikes, and mountain bikes since 1984. It also acquired Cannondale Bicycle Corporation in 1988, which provided it with an opportunity to strengthen its position as a leading player within the biking industry.
Steps That Should Be Taken to Sustain the Growth of the Two-Wheeler Industry
The Indian two-wheeler industry has been expanding at a healthy rate of around 20% year over year. This growth has been supported by increasing urbanization and increasing disposable income. A rising preference for automobile ownership is also driving the demand for two-wheelers. However, this growth may not be sustained in the long run if we do not take certain steps immediately.
The first step would be to improve the infrastructure of roads, highways, and other modes of transportation in India. As a result, this will significantly improve the movement of goods and people across cities and states, thereby creating job opportunities for millions of people.
The second step would be to create an environment conducive to innovation and research & development. This will ensure that new technologies are developed to help reduce pollution levels in our cities and towns.
Thirdly, we need to encourage the use of electric vehicles (EVs) as they can play an important role in reducing pollution levels in our cities and towns, as well as bring down costs associated with transportation systems due to reduced maintenance costs on EVs compared with conventional internal combustion engine vehicles (ICEVs).
India needs to focus its attention on developing a strong manufacturing base for electric two-wheelers. If we develop that, then the market will indeed thrive…
The electric two-wheeler industry has a realistic chance for growth in India. The Government needs to foster the market through reduced taxes and incentives for manufacturers and suppliers of electric two-wheelers. This will allow more competition among manufacturers and easier access to parts by consumers. The Government should also focus on minimizing the cost of creating infrastructure that can support electric two-wheeled vehicles (i.e., charging stations, electricity reinforcement, etc.), as it will significantly impact the demand for such vehicles.
The market will quickly pick up, with the launch of new manufacturing facilities accelerating the transition from fossil fuels. One day, soon, we will see the day when switching to an e-bike or a car powered by electricity will be an easy choice for people in India and around the world.
FAQs
How many electric two-wheelers are there in India?
In 2021 there were nearly 1.4 lakh two-wheeler units were sold in India.
Which is the best electric two-wheeler in India?
Ola S1, Bajaj Chetak, TVS iQube, and Okinawa iPraise are some of the leading electric two-wheeler brands in India.
Which is the largest selling electric scooter in India?
Hero Electric is the largest selling scooter brand in India.
Porsche’s brand name indicates high-quality and expensive cars. Porsche entered the market and positioned itself as an innovative automobile manufacturer.It is specialized inthemanufacturing of sports cars, sedans and SUVs. A typical Porsche customer will be wealthy and adventurous.
The Story of Porsche
Company Highlights
Company
Porsche
Headquarters
Stuttgart, Germany
Industry
Automotive
Founders
Ferdinand Porsche
Founded
1931
Website
www.porsche.com
Porsche still keeps its brand value in the automobile industry. It indicates the management strategies that they adopted over the years. Porsche offers quality customer services. The loyalty of Porsche among customers allowed them to make important decisions in business operations. It made Porsche a unique automotive brand in the world.
24 September 2021 – Porsche is planning to stop selling the combustion-engine Macan model by 2024. However, it is planning to develop 718 Cayman, Boxster electric vehicles by 2025.
23 September 2021 – Porsche gave a sneak preview of the next generation of electric motors with the mission R concept. The car giant will turn its 718 lineups fully electric by 2025 and its design has been previewed by the mission R concept car.
Porsche – Current Situation in the Market
Porsche India’s sales grow 52 per cent in first-quarter 2021, luxury automaker records best quarterly figures in 7 years. US retail deliveries in the first three months of 2021 totalled 17,368 up 44.8 per cent from the same period a year earlier. In the first quarter of 2020, Porsche delivered 53,125 cars. Deliveries fell 5% compared to 2019 due to the Covid-19 crisis. The Cayenne is the most outsold model in the first quarter of 2020 and the Porsche 911 in the year 2021. It has 18,417 deliveries. Macan took the 2nd position with 15,547 deliveries.
The Porsche 911 model series has 8,482 deliveries. It also has 16% increases when compared to the same period in the last year.Taycan is the first all-electric sports car of Porsche. It reached the market in late 2019. Taycan has 1,391 deliveries in the first quarter of 2020. In the first quarter of 2020, 14,098 Porsche cars were delivered to Chinese customers.
China became the top market of Porsche with the most number of deliveries. The United States bagged the second position with 11,994 deliveries. In Germany, Porsche delivered 5,214 cars to customers. In the European market, a total of 16,787 vehicles was delivered. A total of 22,031 vehicles were delivered in the Asia-Pacific, Africa, and the Middle East regions.
Porsche – History
Ferdinand Porsche founded the company in 1931 with main offices in the centre of Stuttgart, Germany. Initially, the company offered motor vehicle development work and consulting, but didn’t build any car under its own name. One of the first assignments the new company received was from the German government to design a car for the people; that is, a Volkswagen. This resulted in the Volkswagen Beetle, one of the most successful car designs of all time. The Porsche 64 was developed in 1939 using many components from the Beetle.
On 15 December 1945, Ferdinand was arrested for war crimes. During his 20-month imprisonment, Ferdinand Porsche’s son, Ferry Porsche, decided to build his own car, because he could not find an existing one that he wanted to buy. He also had to steer the company through some of its most difficult days until his father’s release in August 1947. The first model of what was to become the 356 were built in a small sawmill in Gmünd, Austria. The prototype car was shown to German auto dealers, and when pre-orders reached a set threshold, production (with the aluminium body) was begun by Porsche Konstruktionen GesmbH, founded by Ferry and Louise.
Ferdinand Porsche developed his sports car prototype in March 1948. At the end of the year, he started a small-scale production with the help of Swiss financiers. Ferdinand died in 1951. After that Ferry officially took in-charge of the company. Porsche went through a financial crisis in 2008. Because of this, it was sold to Volkswagen.
Porsche – SWOT Analysis
Strengths of Porsche
The strength of a company is what makes it stand alone in the crowd. Some of the strengths of Porsche are:
Reputation and Brand Image: Porsche developed a strong brand name which is one of their main strengths. The company has worked hard since its inception to ensure that all of its products have the highest quality. It is known for its heritage sports and luxury cars along with the automotive representation. The cars are preferred by high-end customers not only because of the price range but the machine power as well.
Brand Extension: Porsche offers 6 car models in India, including 2 cars in the SUV category, 1 car in the Sedan category, 3 cars in the Coupe category. The number of variations they offer makes them the brand with the highest brand extension opportunities.
Sports Base: Porsche is famous for its sports cars, like the 911. The 911 is a world-known machine that is on sale for the longest time because of the machine it consists of. Their base in the motor racing world is the strongest out of all the other brands because of the quality of the products they use.
Loyalty: Porsche’s biggest strength is its strong and loyal fan base. Apart from being a brand for high-end customers or luxury-based cars, Porsche is in talks with the simplest of minds too. The loyalty base is very high which keeps the brands’ position on top always.
Interior: The interior of the vehicle is comfortable. Also, Porsche has a traditional style. It provides high technical and visual standards. Although people called the company the luxury market, it was flexible to respond to changes in the market. The company has developed some of the most successful SUVs on the market.
Research & Development: The company is strong in research and development. Initially, it invested heavily in the research. As a result, the company was able to become a market leader in many areas. The history of the company shows a commitment to quality and continuous improvement.
Weaknesses of Porsche
Expensive for Middle Class: The company has mainlyfocused on the production of luxury vehicles. This gave a higher price to all products. It was expensive for ordinary consumers. Many consumers cannot afford the car because they sell it at high prices. Ordinary consumers view the product as a luxury item. So before they make the decision to buy a Porsche car, they will give precedence to other vehicles.
Vehicle Size: Most of Porsche’s cars are small. So they aren’t suitable for all operations. And also most of the assembling processes are done in Finland instead of Germany. The company uses a Japanese transmission system in its vehicles which are considered a weakness of Porsche.
Opportunities of Porsche
Entering a new market: The development of electricand hybrid cars will make good opportunities for the company. The company already manufactured an electric car named “Porsche Taycan” in 2019. The development of automatic and intelligent cars is another option. Entering a new market will create more opportunities.
Technology Driven: Technology has enabled manufacturers to make smart products. It allows car manufacturers to add more options to their cars. These features can help to prevent accidents or reduce the impact of accidents. It is a great opportunity to reach new markets. Porsche has the potential to expand its presence in emerging markets.
Threats of Porsche
Threats are something that can harm the company’s reputation or market value. Some of the threats for Porsche are:
Government Policies: Government policies in some countries might result in a restriction for the selling or running of Porsche Cars. So, fixing their issues while they manage the policies is the better option for the company.
Recession: Increase in the recession has led to a decrease in the number of people being able to afford such high-range cars produced by Porsche. Launching cars that can be purchased by the greater mass is another solution to the threat of losing customers.
Competition: With the increasing competition in the market and their biggest competitors being “Tesla”, they need to come up with better products for their existing customer base.
Porsche – Products
Porsche has focused on producing sports cars since its inception. It started with the manufacturing of the Porsche 356 based on the Volkswagen Beetle design. Porsche built a car named “Porsche 911” in 1964. It was outsold well and loved by everyone. After the success of 911, Porsche introduced 912, 924 and 928, etc. They continued the manufacturing of new sports cars in the market.
Porsche 911 (1964) model
The company presented a new model named “Boxster” in 1996. This was the first vehicle of Porsche that was designed as a roadster. After that, Porsche decided to manufacture other types of vehicles. It started with the manufacturing of an SUV. They manufactured an SUV named “Cayenne” in 2002. It was a luxury crossover SUV. It outsold more than the early models.
They produced a model named “Carrera GT” in 2003. It has 8th position on the top sports cars of all time. They introduced Porsche Cayman in 2005. It was derived from 2nd and 3rd generation Boxter. They presented the Panamera sedan in 2009. It was their first four-door sedan.
The Cayenne and Panamera models helped to expand the target market of the company. Both models attracted many female consumers who want the Porsche experience. In 2013, they introduced a model named “Porsche 918 Spyder”. It was a mid-engine plug-in hybrid supercar. In 2014, they manufactured a five-door luxury crossover SUV named “Porsche Macan”.
In 2019, they released an electric vehicle named “Porsche Taycan”. The company has invested mainly in development and research to ensure all qualities. The models of Porsche were reliable and innovative. Also, it is one of the most luxurious brands in the world.
Porsche – Car Price
Porsche is a luxury car manufacturer serving specific customers. Porsche conducted a market study in 1946 to determine if consumers were willing to buy an expensive sports car. Since then, high expensive cars have been the focus of the company.
Porsche continues to build high-quality and expensive cars for the people who are ready to pay for the brand name. Macan is the cheapest model of Porsche starts at Rs 69.98 Lakh and 911 is the most expensive model that starts at Rs 1.69 Crore.
Porsche 911 is the most expensive model of Porsche.
Porsche – Conclusion
Porsche is a luxury car maker with high performance and the company focuses on continuous improvement of quality through technological advancement to maintain and improve the brand’s prestige. Having said that, the company maintains a focus on niche market segments and producing current models.
Porsche – FAQs
Why is Porsche so popular?
When it comes to luxury vehicles or sports cars, Porsche beats all other brands. It is popular because of its luxury, good driving experience, usability, and customer loyalty. It is built to be as good as they possibly can make it.
Is Porsche the best car company?
Porsche are incredible and reliable german cars. It shows the status and peak performance. It makes great cars that are well built, look good and drive well.
Is Porsche better than Ferrari?
Both are incredible machines but Ferrari is faster in speed, more luxurious and more expensive. Having said that, Porsche is more reliable, practical and has lower maintenance costs.
Why is Porsche so expensive?
The technical answer can be because of awesome performance, high quality, incredible driving experience, etc. but apart from that customer’s willingness to pay lets the company produces expensive cars.
Electric Vehicles have created a huge sensation across the world. There are many companies trying to manufacture EVs which includes the reputed firms such as Mercedes Benz, BMW, Audi and even Apple have been said to release their own EV. However, Tesla coming to India had created a hype through the social media for a while but now the Triton EV which is a rival of Tesla has entered into India for setting up its manufacturing facility. In this article let’s look at whether Triton would be able to overpower Tesla.
The US based Electric Vehicle manufacturing company Triton which is a rival of Elon Musk’s Tesla has signed a Memorandum of understanding with the Government of Telangana to open its manufacturing facility. The state of the art manufacturing facility of Triton will be opened in the Zahirabad area of Telangana.
Triton Facility and Jobs in India
The manufacturing facility in India will be built over a million square feet area and is expected to create up to 24,000 jobs in the state. This was conveyed by the Triton EV and the Government of Telangana.
In a statement, the company has stated that in the span of the next 5 years, Triton EV will invest around USD 1.5 billion into the manufacturing facility set up in India. The first set of investments of around USD 300 million will be done in the coming few months.
The company is investing around INR 2,100 crore in order to establish an ultra modern vehicle manufacturing unit in Telangana. The project is set to provide employment to around 25,000 people and the company plans to produce around 50,000 vehicles in the first 5 years. The vehicles would include sedans, SUVs, semi-trucks and rickshaws.
Demand of Triton in India
The chairperson of Triton EV in India has said that the company already has orders worth USD 2.2 billion and also added that the Government of Telangana has provided the company with an order of 3000 EVs.
The semi-truck of Triton contains a battery pack of 300 kW and the truck has the capacity to provide a range of 550 km in a single recharge. The semi-truck has received orders from different automotive industries in India.
Another model of EV which is expected to release by Triton in India is the SUV segment. The Triton SUV model H, the model H SUV looks like a typical American model SUV and has a seating capacity of 8 members.
Triton SUV
The model H SUV has a range of 1,100 km in a single recharge and the EV would reach from 0-60 miles acceleration in less than 3 seconds. The battery pack of the SUV segment also has a hyper charging option which enables the recharge in just 2 hours. Other than the 8 passenger space, the SUV also has a cargo space of around 200 cubic feet.
The Triton EV gives a warranty of up to 10 years for their SUV segment which is not available to any other EV SUV in the market as of now.
The third model of EV that is expected to release is a Sedan model. The sedan model EV is named a model N4. The sedan has an option for short range and long range in which the short range has a km range of up to 540 and the battery would be around 75 kW.
For the long range the sedan model EV would provide a km range of 690 and has a battery of around 100 kW. In order to complete the recharge of up to 80%, the sedan model would take around 8 hours. The sunroof of the EV is made up of a transparent solar panel which helps in powering the on board electronics of the EV and the transparent solar panel helps in charging the N4 sedan as well.
Tesla VS Triton
Triton seems to have attractive EVs under their portfolio and Tesla is nowhere less, however, Tesla does not only sell Electric Vehicles they have a long list of portfolios under them. Moreover, the EVs or Tesla are considered to come under the luxury segment.
However, the move from Triton EV is expected to provide a huge competition to Tesla and we will have to look forward to see whether Triton EV will be able to overpower Elon Musk’s Tesla.
Conclusion
The Government of Telangana has stated that it would provide the required land for the manufacturing facility for Triton EV. The Government also said that it would provide the complete support for the company in order to acquire the necessary approvals for setting up the facility.
FAQ
Who is the founder of Triton EV?
Himanshu Patel is the founder of Triton EV.
Is Triton EV launching in India?
Yes, Triton EV will be launching in India and its first manufacturing plant will be set up in state of Telangana.
With batteries contributing to 40%+ cost in modern EVs, there is anxiety around their longevity and performance (charging time, safety, etc) that require more than just local safety protection. ION Energyis an Advanced Electronics & Software supplier for EVs & ESS. It is focused on building technology that will improve the life and performance of lithium-ion batteries that power electric vehicles and energy storage systems.
ION Energy is accelerating Earth’s transition to an all-electric planet. With a cutting-edge battery management system, advanced analytics software, and artificial intelligence-powered platform, ION is enabling electric vehicle and energy storage space providers the power of data to make faster and smarter decisions.
Read this article to know about ION Energy, funding, CEO, founders, turnover, products, business & revenue model, investors, awards, challenges, and growth.
July 2, 2021 – ION Energy raises a total of $3.6 million in pre-Series A funding round led by retail giants Amazon, followed by angel investors YourNest Venture Capital, Riso Capitol, Venture Catalysts, and others. The funding round was initiated by the eCommerce behemoth’s Climate Pledge Fund, which is set aside by Amazon to support promising sustainability initiatives of startups.
About ION Energy and How it Works
ION Energy has pioneered a disruptive battery intelligence platform – Edison Analytics, that is designed to improve performance and extend the life of Lithium-ion batteries. Edison leverages battery data, software analytics, and AI to remotely monitor, predict, and improve battery life. Battery pack manufacturers, OEMs, and electric mobility fleet operators around the world use ION’s platform to optimize their battery management systems (BMS) and build world-class batteries.
Edison Analytics Features
Both the Founders Akhil and Alex are ardent believers of the first principle thinking and aim to build for the futureand plan to shepherd the gradual and seemingly inevitable shift from fossil fuels to electric energy, more importantly in a developing yet booming economy like India. They emphasize the importance of educating and mobilizing the masses about the new alternatives of energy to change the prospect of EV as a niche concept to a mainstream.
ION Energy – Target Market Size
Battery storage may be the biggest disruption to the energy sector: Globally, the advanced energy storage market is forecast to grow from an annual installation size of 6GW in 2017 to over 40GW by 2022. In some markets, the improved performance and decreasing costs of batteries are already seeing them displace natural gas from the energy mix.
The company’s success in international markets have enabled them to sell 25,000 BMS that have been used with 100MWh of batteries last year. ION’s battery technology platform is leveraged by 60+ companies in 12 countries like India, France, Germany, Austria, Poland, North America, South Africa, UK, etc. to optimize their battery management systems (BMS) and build world-class batteries.
Despite Akhil’s graduation degree in Finance, he was interested in energy and software, since he was much younger. While he was managing the growth strategy at Haptik as its CPO in 2015, Akhil became intrigued by the launch of the Tesla Model S. The interest piqued further when his father was about to sell his Skoda Superb car and he had suggested converting it into an electric model.
While doing some research, ION energy Founder Akhil realized that replacing an internal combustion engine with an electric engine would cost him more than half of the car’s cost, i.e. a car which is in the range of INR 50 lakhs would require a battery amounting to INR. 1 Crore! Given the challenge of the exorbitant battery cost (the most expensive component in an EV), Akhil recognized that there was a pressing need to make the batteries affordable and accessible so that it lasts longer, performs better, and eventually, significantly reduces the cost of the vehicle.
Identifying the gap that no other company in India was catering to this space, ION energytook birth in 2016 in Mumbai. By the next year, ION Energy acquired Freeman SAS, an almost decade-old French company building Battery Management Systems, to boost its core competency. This led to Alex Collet transitioning from his role as a Founder of Freeman SAS to ION Energy’s Co-Founder and marked the international foray of ION Energy with an office in France.
ION Energy – Product/Services
ION Energy is an advanced battery management and intelligence platform. A BMS consists of a microcontroller and a bunch of sensors on the hardware so the technology involved is interfacing with this microcontroller through all these sensors and then interfacing this BMS with the battery pack. The core functions that a BMS performs include – data acquisition, protection, storage, and communication.
Battery Management System Hardware
In terms of the software used, there are various algorithms that run inside the microcontroller which is used to compute certain parameters of the battery such as the state of charge, state of health, range, etc.
The BMS that’s present in the battery pack has substantial information stored inside it and then there is the cloud that is powerful enough to compute, assess, and analyze. The startup is currently building a telematics unit that can transmit this information via the internet, but in its absence, it is using ION Lens, a telematics gateway unit.
ION Lens collects information from the BMS through Bluetooth over your phone and uses the phone’s internet connection to transmit information to the cloud in real-time. There is also a PC utility tool called CANView which runs on your laptop through a wired medium to the BMS called CAN. It connects, then your laptop sends info to the cloud in real-time, through the PC.
The intelligence layer on top of this is Edison Analytics. This is where the data is analyzed on the cloud. The insights are based on the data and the initial calculations that are being done by the BMS placed along with the battery pack locally, without the cloud.
Get Real Time Alerts with Edison analytics
Edison Analytics is designed to improve performance and extend the life of Lithium-ion batteries. Edison leverages battery data, software analytics and AI to remotely monitor, predict and improve battery life.
Advanced battery management and intelligence platform, ION is focused on building technologies that improve the life and performance of lithium-ion batteries used inside of electric vehicles and energy storage systems. ION also leverages advanced electronics and software that accelerates the effort of engineering teams.
In 2018, after acquiring an 8-year-old French Battery Management System (BMS) developer – Freemens SAS, ION came out of stealth mode and unveiled its first product UDYR, an easily swappable battery for electric scooters and started commercializing its flagship BMS platform. UDYR’s battery management would allow it to enhance performance and increase battery life by up to 200 percent.
Electric vehicles are expensive, primarily because of the lithium-ion batteries that power them. The cost of a battery amounts to 40% of the total vehicle cost. While the upside of using lithium-ion batteries is their high energy density, relatively low self-discharge, and low maintenance, on the other hand, they have a limited life. On average, the estimated life of a lithium-ion battery is up to 3 years or 500-700 charge cycles, after which, they need to be replaced.
This helped them pivot to improve performance and extend the life of lithium-ion batteries that are used inside EVs and ESS with its flagship BMS. ION’s unique advantage is its intelligent ecosystem – BMS + Edison Analytics, that blends advanced electronics, machine learning software, artificial intelligence, and data science with deep domain expertise in energy storage.
ION Energy o-founder Akhil Aryan explains, “The key differentiator – our battery intelligence platform Edison Analytics, uses real-time simulations and visualizations designed to extend battery life by up to 40% and reduce the overall ownership cost, thus boosting ROI.
ION Energy was founded by Akhil Aryan and Alexandre Collet in 2016.
ION Energy founders
Akhil Aryan – Akhil Aryan is the Co-Founder and CEO of ION Energy, one of the world’s most advanced battery management and intelligence platform. Akhil has been recognized as one of the Young Achievers of 2020 in the coveted ‘30 Under 30’ Forbes Asia (Industry, Manufacturing, and Energy), and Forbes India (Technology) list, and he has also been featured in Entrepreneur India’s ‘35 under 35’ list. Akhil’s objective is to identify missions and build an environment that helps unlock the full potential of his team.
One of the most unique things about Akhil is his versatility and ability to get on steep learning curves to understand markets and evaluate business opportunities. ION is a great example of how he converted his childhood fascination into a business, without an engineering degree. He graduated from the University of Mumbai with a degree in financial markets, but Akhil always says that his laptop is his gateway into the world’s largest repository of knowledge and degrees should not be held as assets that create entitlement.
In his last company – Haptik, one of the world’s largest conversational AI platforms – Akhil led the product team from the start, managed user acquisition and conversion, helping it skyrocket from 100k to 1.5 million users. In 2016, Haptik raised $12M and was on track to become one of India’s largest AI companies (acquired by Jio for $100M). Akhil was instrumental in building a complex Natural Language Processing engine to power the enterprise’s Machine Learning and Artificial Intelligence efforts from the ground up.
ION Energy Team
Alexandre Collet – Alexandre Collet is the Co-founder and CTO at ION Energy, a company that is dedicated to reducing carbon footprints and building sustainable cutting-edge technology for lithium-ion batteries with a focus on electric mobility. Alexandre is chiefly responsible for designing and streamlining the technological innovation and product development at ION. A highly proficient engineer, he completed his masters in Power Electronics and Embedded Systems from the University of Grenoble, France.
Alexandre had a plethora of professional experience before his current electric endeavor at ION energy. In 2011, he founded Freemens SAS, an industry leader in battery management systems, that was acquired by ION Energy in 2018. Freemens SAS was powered into existence on his groundbreaking inventions and scientific research in power electronics architecture, lithium-ion cell aging factors, and state identification at the University of Grenoble, France.
ION Energy Team
Inside the company, ION Energy’s CEO Akhil’s role goes beyond the usual responsibilities of product, technology development, and business expansion. As a big believer of first principle thinking, his focus is on turning the green warrior narrative into a business opportunity and exploring ways to reduce the planet’s dependence on fossil fuels.
ION Energy Co-founder Alexandre seeks to concentrate on the software side of things with an increased focus on developing and scaling Edison Analytics, the world’s first and finest AI-powered state of the art battery data analytics software for all Battery Management Systems. He wants to make ION a household name and the face of advanced battery management and operating systems to unleash an electrical revolution in the world.
While Akhil is known as a software entrepreneur, he have always been innately curious about the nature of electrons. It never ceases to fascinate him that adding or removing even a single electron changes the properties of the nucleus of the atom, and hence the overall object! Such altered atoms that have gained or lost electron(s) are called IONs. This is how IONs form the basis of energy itself. The overpowering nature of IONs led to the name of as ION Energy.
ION Energy Logo
“I strongly believe that building, maintaining and optimizing the Energy Ecosystem is the greatest opportunity of our generation. Not only from a financial unit economics point of view, but also environmental impact. As a founder I will ensure that ION Energy remains at the forefront of this movement”, says ION Energy Co-founder Akhil Aryan.
ION Energy – Business Model
ION’s full-stack approach blends advanced electronics, IoT, analytics, and AI with deep domain expertise in energy storage. ION’s platform leverages a two-way communication gateway that enables businesses to:
Identify factors that are contributing to abnormal degradation of the battery’s health and the magnitude of contribution
Take appropriate actions like configuration changes over the air, drive profile changes, or environment changes to continuously improve the life and performance of the battery.
Optimize costs and acquire better ROI through all stages of the battery life cycle.
This is deeply integrated with a license to Edison Analytics, its battery intelligence platform that is offered as a SaaSproduct. With this core differentiator, ION is overturning the unexceptional rigid, one-time configuration approach adopted by other electronics suppliers.
ION Energy – Revenue Model
The company earns its revenue by following three business models:
The first one is the BMS sale where a bunch of companies buy its battery management system.
The second is the BMS platform license which means companies can use the platform to accelerate their BMS development by two-three years and save million dollars expenses.
Thirdly, the subscription to the startup’s software analytics platform which the companies use for diagnostics and warranty validation.
Akhil Aryan – “Being a startup, we’ve always made it a point to be transparent with our customers. Our communication with our customers has built trust in our company and our platform. At ION, good news can always wait, but if anything goes wrong, we communicate at the earliest and work on correcting our mistakes. At ION, it’s our mission to do whatever we can to make our customers successful. That’s why our first 10 customers are still our strongest customers today and brought many more clients to our company”.
ION Energy – Startup Challenges
It’s so difficult to capture all the challenges one faces in the early days of a startup. It’s almost always at the intersection of Market, Product, Team & Traction. For the team of ION Energy, the challenges were mostly around timing their product with market maturity and ensuring they’re investing both in product and customers that can help them create short term revenues but also those that have the long term potential for market penetration.
“Initially when we began operations, one of the biggest challenges we faced was grooming technical talent in-house. There weren’t many engineers who had expertise in the EV sector and the number of engineers who had knowledge in AI and analytics was low as well”, recalls ION Energy co-founder Alexandre Collet.
When a new market starts shaping up, the talent pool is not mature and so it’s difficult to make significant progress on technology unless there is senior leadership in-house grooming talent. Thus, the company had to train them from the ground up and provide knowledge as well within the sector.
This helped in creating the core team that today also helps train any new engineer that is hired by the firm. Founders hope that in the future, there will be more experts in the EV sector in particular with colleges like Savitribai Phule Pune University (SPPU), College of Engineering – Pune and the Cummins College of Engineering for Women and institutes like IITs beginning courses specifically to EVs.
Explaining the concept to investors at a time when there was low awareness of the need and the technology, inadequate infrastructure, lack of push for electric vehicle adoption and localization of technology by regulatory authorities in the country are some other challenges faced by the company.
ION is India’s largest BMS company with 30%+ market share in the 2/3W space, 10 Crores in revenue and offices in India & France.
The company has customers like Exicom Tele-Systems Ltd., IBS, Tork Motors, Wamtechnik, Electro-Mechanique Industries (RGM), Swincar, TYVA Energie, and Yotta Solar.
ION Energy – Funding and Investors
The initial ION Energy funding came from Akhil (Co-Founder). There are also some seed investors that include Astarc Ventures, Advik hi-Tech and executives from Salesforce, Tesla, Haptik, Nippo Batteries, and Dentsu Aegis. The funds have helped ION Energy in product development and bring the technology closer to mass manufacturing.
The latest fund, as disclosed by ION Energy, is led by eCommerce behemoth, Amazon via the Climate Pledge Fund, worth $2 billion that the firm set aside to support sustainability initiatives of the startups around the world. Along with Amazon, the other companies that joined the round were YourNest Venture Capital, Riso Capitol, Venture Catalysts, and more, which helped ION Energy to raise around $3.6 million in its pre-Series A funding round.
ION Energy – Advisors and Mentors
ION Energy is a part of Shell’s E4 Programme and is mentored by Sushil Jiwarajka, Chairman of OMC Power and founder of Nippo Batteries.
ION Energy was founded in 2016, and within a year of its inception, ION Energy acquired an 8-year-old French Battery Management System (BMS) developer – Freemens SAS, in a first of its kind cross-border acquisition.
ION Energy – Recognition and Achievements
Akhil has been recognized as one of the Young Achievers of 2020 in the coveted ‘30 Under 30’ Forbes Asia (Industry, Manufacturing, and Energy), and Forbes India (Technology) list, and he has also been featured in Entrepreneur India’s ‘35 under 35’ list.
ION Energy – Future Plans
The next 5 years are going to be pivotal, not only for ION Energy but also for our planet and the human species. If the company manages to make the e-mobility transition holistically, it will go down in history as one of the largest positive recourse that humanity has made. The move away from fossil fuels will define the generations to come. ION Energy has a major role to play in this transition and they take this responsibility seriously.
Over the 5 year horizon, the company sees itself managing 10% of all Li-Ion batteries deployed in the country. To make this a reality, they will scale to 100 engineers by 2021 and leverage India’s strength in electronics and software to overcome the lack of lithium resources.
“We aim to Deliver to the Key Customers with 10x Reliability in – Product + Technology. In the next 18 months, we envision quadrupling the impact and delivering 10x by 2021 to 1GWh under management and $20M in revenue“, says Akhil while talking about future plans.
Zomato is the one of the largest food delivery startups in India. It is a multinational company which was founded in the year 2008 having its headquarters in Gurgaon, Haryana. The startup’s service is available in almost 24 countries and more than 10,000 cities. Zomato has announced that they would adopt to Electric Vehicles by 2030. Let’s look at how the startup is planning to do 100% food delivery on Electric Vehicles.
Zomato which is a Bangalore based food tech company has announced that they were planning to adopt to shift their food delivery service to Electric vehicles by the end of 2030. In the month of May, the company had announced its plans to provide funding towards environmental projects in order to reduce the emission of carbon into the atmosphere.
The company had also conveyed through a blog post that they would join the EV-100 which is a global initiative by the companies in order to shift towards Electric Vehicles.
What Deepinder Goyal said
The co-founder and the CEO of Zomato, Deepinder Goyal had conveyed through a blog post that the company was already making a number of deliveries using Electric Vehicles in the major cities which include Bangalore, Delhi, Mumbai, etc. and added that the company will try and fully adapt towards Electric Vehicles by 2030.
He further added that the current food delivery through Electric Vehicle is hardly a few compared to the active delivery partners and added that the company understands that it is hard to adapt to 100% EVs but it is considered to be a necessity in the long run.
Barriers Zomato will Face in adapting 100% Electric Vehicles
In order to adapt to 100% Electric Vehicles there are a lot of barriers faced by the company. Currently, the adoption rate is very low for the company as well as the two-wheeler industry. There are a certain set of barriers that currently impact the two-wheeler industry in general which include lack of infrastructure which is the charging stations, limited battery range, higher cost, and lack of brand loyalty in the new technology.
Zomato’s strategy in adapting 100% electric vehicles delivery
Zomato has been working towards adapting to the Electric Vehicle and has been actively engaging with certain Electric Vehicle players. They have been trying to come up with certain personalized designs for the company and also have been working towards creating business models that would help in making the transitions towards the Electric Vehicle sector much more easier and faster.
In February 2021, the company had raised an amount of USD 250 million from its existing set of investors which include Tiger Global, Kora and Fidelity.
Zomato Revenue
Companies other than Zomato looking for transition to electric vehicles
Zomato is not the only company that is working towards adaption of the Electric Vehicles in their business operation. Flipkart which is owned by Walmart had also announced that the company is looking forward to deploying around 25,000 Electric Vehicles by 2030.
Flipkart has also joined the climate group’s initiative of EV100 and the transition is a part of its commitment towards to climate group to change the logistic fleet to Electric Vehicles. The e-commerce giant has already started using the 2-wheeler and 3 wheeler Electric Vehicles in the major cities that include Pune, Hyderabad, Kolkata, Delhi, Guwahati, etc.
Even Amazon has pledged towards the EV100 initiative and announced that they would introduce 10,000 Electric Vehicles for delivery and also introduce around 1 Lakh Electric Vehicles by 2030 as part of its commitment.
Zomato is looking to make the company public and has been preparing for IPO which is considered to be one of the largest IPO. The company has also reported that they are doing well and said that their performance has crossed their expectations. Amidst the lockdown and restrictions laid down due to Covid 19 people are turning towards the online food delivery.
FAQ
What is the net worth of Zomato?
Zomato had a net income of US$350 million in 2020.
Who is owner of Zomato?
Deepinder Goyal is founder and CEO of Zomato.
What is the valuation of Zomato?
The valuation of Zomato is $5.4 billion dollars after the recent investment of $250 million by Tiger Global, Kora and others.
Tesla which is an Electric Vehicle manufacturing company and that is involved in other businesses such as charging stations, solar roofs, power grids, etc. has now said to enter into the restaurant business. Let’s look at the reason why Tesla would be venturing into the restaurant business.
Tesla under Elon Musk has recently filed a trademark under its brand in the restaurant industry. This is considered as a sign by the Californian company to venture into the restaurant business. The company has filed an application for three new trademarks with the US Patent and the Trademark office.
The application was filed on 27 May 2021 which has not yet been approved and will be reviewed during the month of August.
Brand Logo and Trademarks for Tesla Restaurant
For the food industry, the company has plans to use its T logo design with two other iterations of the stylish Tesla logo. The company has filed the trade marks for three different categories which cover the restaurant services, self-service restaurant services, pop-up restaurant services and take-out restaurant services.
Reason Tesla is Entering Restaurant industry
One of the major reasons for Tesla to enter into the restaurant industry would be because of their charging stations. It is to be noted that, charging their Electric Vehicle would take around 20-30 minutes and people would like to grab a cup of coffee, use the washroom or have something.
This can be a step towards filling that gap in the charging stations. However, during September 2017, the Chief technology officer of Tesla had announced that Tesla has plans to start a convenience store in their supercharging stations.
In the year 2019, Elon Musk had announced that he has plans to start a retro fast-food restaurant at one of Tesla’s supercharging stations in Los Angeles. Elon Musk had tweeted saying that he was going to put an old school drive-in, roller skates and rock restaurant at one of Tesla’s new supercharging stations.
Gonna put an old school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in LA
The year before that Tesla had opened a couple of charging stations that provided snacks and beverages for the car owners who charged in the charging stations. In the same year, an executive of Tesla who spoke at the Foodservice tech conference said that the restaurant business would make sense for the company.
However, the executive had added that the company did not have any plans to start a restaurant on its own but would want to tie up with partners who are already in the industry.
The application for the trademark signifies that the company has a different strategy and looks like the company is looking forward to creating restaurants under the brand Tesla using the same logo. Recently Elon Musk had tweeted again that he would like to open a retro restaurant at the supercharger station.
He had tweeted saying that a new supercharging station is coming to Santa Monica in California and that he’s looking forward to having 50’s diners and a 100 best movie clips played. It is to be observed that in order to start a restaurant in Santa Monica California, Tesla had applied for permits during March 2018.
Major new Supercharger station coming to Santa Monica soon! Hoping to have 50’s diner & 100 best movie clips playing too. Thanks Santa Monica city!
Tesla has more than 25,000 supercharging stations around the world. However, the Tesla restaurant concept would attract a lot of attention and is expected to have a significant number of audiences. The company has a wide network and has sold a half a million cars in the year 2020.
FAQ
Why tesla is planning to get into restaurant business?
The reason Tesla might enter into the restaurant business is because of their charging stations, as charging their Electric Vehicle would take around 20-30 minutes and people would like to grab a cup of coffee, use the washroom or have something.
How many superchargers does tesla have?
Tesla has more than 25,000 supercharging stations around the world.
What type of restaurant is tesla planning?
Tesla has filed trademarks for categories of restaurant services, pop-up services, self-service restaurant services, take-out restaurant services.
The Chinese Smartphone company Xiaomi is reportedly planning to enter into the Electric Vehicle platform. The company which is involved in manufacturing consumer electronics is planning to invest into the Electric Vehicle Industry. Let’s look at this article to understand the plans of Xiaomi about its EV industry.
Xiaomi is a Chinese Multinational company which is headquartered in Beijing. The company was founded in the year 2010. Xiaomi makes and invests in smartphones, laptops, mobile apps, home appliances, bags, shoes, consumer electronics, accessories, and IoT devices.
Xiaomi is the fourth company to develop a mobile system on chip (SoC) capabilities after Apple, Samsung, and Huawei. Xiaomi is the fourth largest mobile manufacturing company in the world. The company has a leading position in the largest market which is China and the second largest market which is India.
Xiaomi planning to enter Electric Vehicle market
Xiaomi has plans to be part of the Electric Vehicle market. Xiaomi has confirmed its intention to invest $10 billion in its own subsidiary firm which is completely owned by Xiaomi. They had confirmed their intentions at the Mi MIX Fold Global Launch Event.
The initial investments according to the confirmation stand at CNY 10 billion. The founder and CEO Lei Jun is expected to lead the Electric Car project of the company for the time being. Xiaomi has not revealed any information about the products they plan to introduce or work on in the Electric Vehicle segment of the company.
There are no announcements regarding their projects and no information about the company’s launch plans. Xiaomi has said that they want to work on providing quality electric vehicles which would let everyone in the world to enjoy smart living anytime and anywhere.
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Xiaomi’s EV Investments
According to the report by Chinese media LatePost Xiaomi’s entry into the EV market to manufacture Electric cars was taken after considering it for years. They have also said that the company’s plans are just in the early stages and it might change in the future as well.
The report has also said that in the year 2018 Xiaomi had launched an early project in the electric vehicle segment called Mi car to explore the electric car making industry. It is said that the CEO of Xiaomi Lei Jun had visited Elon Musk who is the CEO of Tesla in 2013 twice.
Xiaomi has also made a mark in the Chinese Electric Vehicle segment by investing in Xpeng motors which delivered around 27,041 vehicles in the year 2020. They have also invested in NIO which is also a Chinese homegrown Electric Vehicle maker.
China’s Electric Vehicle market
China’s Electric Vehicle market has seen a significant growth in the recent years. It has attracted a lot of high-profile companies ranging from traditional automobile companies to internet companies.
According to a research by the China Association of Automobile Manufacturers, In the year 2020, the country saw an increase in the sales of EV which accounted for 1.37 million. There is an increase in the sales of up to 11% year-on-year.
China based automaker Greely auto has said that it is planning to focus more on to the Electric Vehicle segment. The founder and Chairman of the company Li Shufu have announced that the company has plans to shift 90 percent of its production to hybrid Electric vehicles and is also planning to set up a new factory for New Energy Vehicles.
The growth of the Chinese Electric Vehicle market has come after the multiple policy campaigns which are to promote carbon reduction which includes the plans to reach carbon neutrality by 2060.
Other Players in Electric vehicle market
Earlier, Huawei had announced its plans to enter into the manufacturing of Electric Vehicles. There were several speculations through various news reports which had suggested that the company had approached China’s Changan Automobile, BluePark New Energy Technology, and other players in the industry. Huawei has plans to concentrate on developing smart bits and to let the car manufacturers provide car parts.
From the western world, there has been a lot of rumors of Apple entering into the Electric Vehicle segment. It is said that the iPhone manufacturer is working on an electric vehicle of its own. The company is focusing on building the autonomous tech, battery, and the technical parts of the car and would require another partner from the automobile sector to work on the rest of the parts of the car.
FAQ
Which is the cheapest electric car?
Smart EQ Fortwo EV is one the cheapest electric car.
What are the 3 types of electric cars?
Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs) are the 3 types of electric cars.
Who is the CEO of Xiaomi?
Lei Jun is the current CEO of Xiaomi.
Conclusion
Compared to Apple and Huawei, Mi has still not announced any of its plans for its products or the launch. We will have to wait for any more news regarding the Chinese smartphone manufacturer’s entry into the Electric Vehicle Segment.
Nitin Konde
