StartupTalky

Tag: EV industry in India

  • Ola Electric: Revolutionizing Mobility with Clean Energy Solutions

    Ola Electric, India’s largest mobility platform and one of the top ride-hailing companies globally, is leveraging its strong foundation in urban mobility to champion sustainable transportation. In this StartupTalky article, we will explore the journey of Ola Electric from its inception to how it became a key player in India’s EV revolution and growing innovation with the creation of the Future Factory, the world’s largest and most sustainable two-wheeler manufacturing facility.

    The below article portrays Ola Electric’s success story, its history, growth, funding, business model, hardships, challenges, competitors, and more.

    Ola Electric – Company Highlights

    Name Ola Electric Mobility Private Limited
    Headquarters Bangalore, Karnataka
    Sector EV
    Founder Bhavish Aggarwal
    Founded 2017
    Valuation $7 billion (August 2024)
    Website Olaelectric.com

    Ola Electric – About
    Ola Electric – Industry
    Ola Electric – Founders and Team
    Ola Electric – Startup Story
    Ola Electric – Mission and Vision
    Ola Electric – Name, Tagline and Logo
    Ola Electric – Business Model
    Ola Electric – Revenue Model
    Ola Electric – Challenges Faced
    Ola Electric – Funding and Investors
    Ola Electric – Investments
    Ola Electric – Mergers and Acquisitions
    Ola Electric – Growth
    Ola Electric – Advertisements and Social Media Campaigns
    Ola Electric – Awards and Achievements
    Ola Electric – Competitors
    Ola Electric – Future Plans

    Ola Electric – About

    Ola Electric is driving India’s emergence as the global hub for the electric vehicle (EV) revolution. As a pioneering EV company, they are working towards a brighter, safer, and greener future by building an ecosystem of products, services, and cutting-edge technology that will shape the next frontier of innovation. Their focus is deeply rooted in research and development, with expertise in design, engineering, and manufacturing that is dedicated to creating high-quality and accessible EVs.

    From concept to production, Ola Electric is committed to owning and developing all core EV technologies and components. This includes everything from battery cells to electric vehicles, making them central to the future of sustainable transportation.

    Ola Electric’s R&D efforts extend beyond India, with facilities in the UK and the US, including their Battery Innovation Centre, where they are developing cutting-edge cell and battery technologies that will lead the industry into the future.

    Ola Electric – Industry

    India is setting an ambitious goal to boost the share of electric vehicle (EV) sales by 2030, targeting 30% for private cars, 70% for commercial vehicles, 40% for buses, and a massive 80% for two-wheelers and three-wheelers. This translates into a bold objective of having 80 million EVs on the roads by the end of the decade, all driven by a push for complete domestic production under the ‘Make in India’ initiative.

    Globally, the electric vehicle market was valued at $255.54 billion in 2023 and is expected to skyrocket to approximately $2,108.80 billion by 2033, growing at a strong compound annual growth rate (CAGR) of 23.42% from 2024 to 2033.

    India Electric Vehicle Market Size, 2022 to 2032
    India Electric Vehicle Market Size, 2022 to 2032

    In India, EV sales have been on the rise. By May 2024, EV sales surged by 20.88%, reaching 1.39 million units. In 2023, EV sales in India saw an even bigger leap, growing by 49.25% to 1.52 million units. Though still in its early stages, the Indian EV market is gaining significant momentum. According to Fortune Business Insights, the Indian EV market is projected to expand from $3.21 billion in 2022 to a whopping $113.99 billion by 2029, growing at a rapid CAGR of 66.52%.

    This global shift toward EVs is creating exciting new opportunities for automotive suppliers, particularly in the Indian EV battery market, which is forecasted to grow from $6.77 billion in 2023 to $27.70 billion by 2028. This highlights the massive potential of India’s EV sector as it continues to evolve and expand.

    Ola Electric – Founders and Team

    Bhavish Aggarwal is the Co-founder and CEO of Ola Electric.

    Bhavish Aggarwal - Co-founder and CEO, Ola Electric
    Bhavish Aggarwal – Co-founder and CEO, Ola Electric

    Bhavish Aggarwal, born on August 28, 1985, is a prominent Indian entrepreneur known for his remarkable contributions to the tech and mobility sectors. Aggarwal hails from Ludhiana, Punjab, where he was born and raised. He completed his bachelor’s degree in computer engineering from the Indian Institute of Technology, Bombay, in 2008. Early in his career, he worked with Microsoft Research India as a research intern, later becoming an assistant researcher. However, it wasn’t long before he ventured into entrepreneurship. During his time at Microsoft, he filed two patents and published three papers in international journals, demonstrating his strong technical expertise.

    In 2010, he co-founded his first major company, Ola Consumers (ANI Technologies Pvt.), which quickly emerged as a strong competitor to Uber in India. What started as a ride-hailing app soon expanded into other sectors, including online payments and food delivery, establishing Ola as a versatile and powerful player in India’s tech ecosystem.

    Aggarwal also founded Ola Electric, a venture dedicated to revolutionizing the electric vehicle industry in India. Most recently, he launched OlaKrutrim, a groundbreaking artificial intelligence (AI) company, which became India’s first AI unicorn in 2024, reaching a valuation of $1 billion.

    Recognized globally for his influence, Aggarwal was named in Time magazine’s list of the 100 Most Influential People in 2018. With a net worth of $2.3 billion, he stands as one of the youngest self-made billionaires in the world.

    Bhavish Aggarwal’s journey from tech researcher to founder of multiple successful ventures showcases his vision for the future of technology and mobility, both in India and on the global stage.

    Bhavish Aggarwal: Education | Personal Life | Success Story
    Explore the inspiring journey of Bhavish Aggarwal, the founder and CEO of Ola, as he navigates the dynamic world of technology and transportation. Discover about Bhavish Aggarwal’s education, parents, age, and more.
    StartupTalkyTejas Mundhada

    Ola Electric – Startup Story

    Ola initially started as Olatrip.com, a small website venture offering weekend trip packages. Founded by two IIT Mumbai graduates, Bhavish Aggarwal, and Ankit Bhati, it began as a startup aimed at selling online tour packages. After working at Microsoft for nearly two years, Bhavish shifted his focus to entrepreneurship. However, a frustrating experience with a car rental service led Aggarwal to encounter a significant gap in the transportation industry, which drove him to innovate and disrupt the market. Henceforth, the duo began to rethink the car rental system entirely, sparking the creation of Ola Consumers (formerly Ola Cabs). What began as a solution to improve car rentals soon transformed into a ride-hailing giant, now simply known as Ola.

    As the company grew, it expanded beyond ride-hailing, eventually venturing into the electric vehicle space.

    In a press conference in Mumbai in late July, Bhavish reflected on the EV journey, saying, “Three years ago, when we launched our product, I believe that’s when the EV story began.”

    These words encapsulate the meteoric rise of Ola Electric, which quickly became a key player in India’s electric vehicle revolution. At a time when India’s green infrastructure was still developing, Bhavish’s ambitious vision to create the world’s leading “urban mobility EV company” drove Ola Electric’s rapid growth. His bold vision, coupled with Ola Electric’s innovative strides, has placed both the company and Aggarwal at the forefront of India’s EV transformation, powering the country’s shift toward a sustainable, electric-powered future.

    Ola Electric – Mission and Vision

    Ola Electric’s mission is to significantly reduce emissions and lower fuel dependency by transitioning Ola’s cabs and other vehicles to electric, promoting mass electric mobility for a cleaner and greener future.

    While Ola Electric envisions:

    • Bringing together brilliant young minds to drive innovation
    • Shaping the future of electric vehicles on a global scale
    • Excelling in technology and engineering
    • Creating industry-leading products that set new benchmarks for electric mobility

    Ola Electric Logo
    Ola Electric Logo

    Ola’s tagline “All-electric Future. From India. For the world.”, perfectly captures the company’s mission of leading the electric vehicle revolution from India with a global perspective. 

    The word “Ola”, symbolizes the ease and friendliness that the company aims to bring to its customers. Ola strives to make hailing a cab and using their services effortless and user-friendly. This reflects their commitment to providing seamless, customer-centric experiences while driving the future of electric mobility.

    Ola Electric – Business Model

    Ola Electric’s business model operates on three core platforms:

    1. R&D and Technology: Ola Electric takes charge of designing and developing its own electric vehicle (EV) technologies and components. This includes key areas like software, electronics, motors, batteries, and advanced manufacturing techniques. Their focus on in-house innovation allows them to maintain control over the quality and functionality of their products.
    2. Manufacturing and Supply Chain: Ola Electric boasts a flexible assembly line, supported by a shared supply chain and a vertically integrated manufacturing ecosystem. This integration streamlines their production process, ensuring efficiency and scalability, from the components to the final product.
    3. D2C Omni-Channel Distribution: Ola Electric embraces a direct-to-consumer (D2C) approach for selling and servicing its EVs. This includes an online shopping platform, a robust charging network, and company-owned sales and service centers. By handling distribution and services directly, Ola Electric ensures a seamless and consistent customer experience.

    Business Model of Ola | How does Ola Cabs makes money
    Ola is one of the leading can aggregator in India founded by Bhavish Aggarwal. Lets look at its business model to understand reason behind it success.
    StartupTalkyPratyusha Srivastava

    Ola Electric – Revenue Model

    Ola Electric generates revenue from the following streams:

    • Selling Scooters: The main revenue driver for Ola Electric is the sale of its electric scooters, including popular models like the S1 Pro, S1 Airand S1 X+.
    • Selling Accessories: Ola Electric also generates income through the sale of accessories such as spare parts, chargers, and other related products that complement its EV offerings.
    • Services: Ola Electric provides a range of services, including maintenance, after-sales support, and other customer services to ensure the long-term satisfaction of its users.

    Ola Electric – Challenges Faced

    Ola Electric, the electric vehicle (EV) company headquartered in Bengaluru, has experienced several operational challenges that have impacted its business. Here’s a closer look at these issues:

    Ola Electric Layoff

    On November 21, 2024, a source revealed that Ola Electric plans to lay off about 500 employees as part of a restructuring effort to improve the company’s profits.

    This comes a few months after its sister company, Ola Consumer (formerly Ola Cabs), also underwent restructuring in April, affecting 10% of its staff. During that time, CEO Hemant Bakshi stepped down after less than a year, and CFO Karthik Gupta also left, impacting around 200 employees.

    Service Issues

    • Enhancing Customer Trust Amid Increased Complaints: With rising complaints about software glitches and hardware issues, Ola Electric faces the challenge of restoring customer confidence. The Hyperservice campaign and quick-service guarantee are aimed at improving service reliability and customer experience. Aggarwal’s commitment to doubling service centers to 1,000 by December presents a logistical challenge. Expanding infrastructure while ensuring consistent service quality will require efficient resource management, staffing, and training. Introducing a one-day quick-service guarantee, with backup Ola S1 scooters for delays, requires robust operations management. Ola Electric must ensure availability and streamlined service processes to meet this promise consistently.
    • Minimizing Impact of Service Challenges on Sales: The decline in sales, linked to unresolved service issues, places pressure on Ola Electric to stabilize sales by improving its service reputation. The effectiveness of the Hyperservice campaign and prompt delivery of promises will be critical in reversing this trend. Offering cab coupons through Ola Care+ adds value for customers, but ensuring adequate customer retention and satisfaction may require further enhancements to Ola Care+ plans and personalized support.

    Market Share Decline

    Ola Electric’s market dominance has seen a downturn, with its market share dropping from 40.4% to 32.4% in recent months. This dip indicates increased competition and possibly waning customer confidence in the company’s products or services.

    Market Competition

    Ola Electric, once dominating India’s electric scooter market, saw a significant drop in sales in September, marking its lowest monthly sales figure at 23,965 units. This decline led to a market share dip of 27%, a sharp fall from its commanding 50% share in April. As Ola Electric’s sales slumped, competitors like TVS Motor and Bajaj Auto capitalized, gaining ground with the introduction of newer models and stronger service networks.

    This shift suggests increasing competition and growing consumer expectations for product quality and after-sales service, areas where Ola may need to focus to regain its footing in the market. The decline also raises questions about its long-term dominance, as rivals continue to innovate and expand.

    Technological Advancements

    Ola Electric, once a fierce competitor to Uber in the ridesharing market, has now shifted its strategy towards tackling a new giant—Tesla. As Tesla eyes the Indian EV market, Ola Electric is aggressively aiming to undercut Tesla by offering more affordable electric vehicles.

    Their contribution to India’s mobility landscape is primarily through two-wheeled mopeds, which have made Ola Electric the country’s largest manufacturer of electric scooters. Expanding beyond scooters, the company has intensified its focus on electrification. It is actively developing its lithium-ion battery technology and building Asia’s largest battery R&D facility. This cutting-edge center will drive Ola’s ambitions to lead the EV revolution in India by advancing battery tech and maintaining a competitive edge in the global market.

    By investing heavily in these areas, Ola Electric is positioning itself to dominate India’s EV market and compete internationally, with innovations that could reshape the future of electric mobility.

    Ola Electric – Funding and Investors

    Ola Electric has raised a total of $1.7B in funding over 15 rounds. Ola Electric has been making headlines with a series of substantial investments:

    Date Name Investors Money Raised
    June 11, 2024 Debt Financing Alteria Capital INR 1 billion
    April 1, 2024 Debt Financing EvolutionX Debt Capital INR 4.1 billion
    Oct 26, 2023 Debt Financing SBI $240 million
    Oct 7, 2023 Series E — INR 11.9 billion
    Sept 7, 2023 Private Equity Round Tamasek Holdings $140 million
    May 22, 2023 Private Equity Round — INR 25 billion
    Jan 24, 2022 Series D — INR 15 billion
    Dec 8, 2021 Series C Tamasek Holdings $53 million
    Sept 30,2021 Series C Alpha Wave Global, Softbank $200 million
    July 12, 2021 Debt Financing Bank of Baroda INR 7.4 billion
    March 12,2020 Series B Pawan Munjal family Trust $1.0 million
    July 02, 2019 Series B Pawan Munjal family Trust,Softbank, Hyundai Motor Company,Kia $267.0 million
    May 06, 2019 Series A RNT AssociatesAngel Investor: Ratan N. Tata, Gaurav Deepak $2.1 million
    Feb 26, 2019 Series A Tiger Global Management, RNT Associates, Sarin Family Trust, India Internet Fund, Z47.Angel Investor: Gaurav Deepak $57.0 million

    Ola Electric – Investments

    Ola Electric has invested in StoreDot, details of which are as below:

    Name Total Equity Current Stage
    StoreDot $226 million Series D

    Ola Electric – Mergers and Acquisitions

    Ola Electric made a single acquisition in 2020.

    Acquisition Date Price
    Etergo May 27, 2020 $23.1 million

    Ola Electric – Growth

    Ola Electric has experienced significant growth in revenue, deliveries, and market share in the Indian electric vehicle market, specifically in two-wheeled EVs:

    • Revenue Growth: In Q1 2024, Ola Electric’s revenue rose by 32.3%, reaching INR 1,644 crore, up from INR 1,243 crore in Q1 2023.
    • Deliveries: The company delivered over 1.2 lakh electric scooters in Q1 2024, a substantial increase from 70,575 units in the same period the previous year.
    • Market Share: As of September 2023, Ola Electric captured approximately 47% of India’s two-wheeler EV market, marking it as a dominant player.
    • IPO Success: Ola Electric’s listing on the National Stock Exchange (NSE) on August 9, 2024, resulted in a stock surge to ₹126.21 by August 23, a 66% increase.
    Ola Electric Financials FY23 FY24
    Operating Revenue INR 2631 crore INR 5010 crore
    Total Expenses INR 3883 crore INR 6277 crore
    Cost of Material Consumed INR 2505 crore INR 4391 crore
    Employee Benefit Expenses INR 427 crore INR 439 crore
    Total Loss INR -1472 crore INR -1584 crore
    Ola Electric Financials
    Ola Electric Financials

    Ola Electric’s revenue grew by 90% from FY23 to FY24, going from INR 2631 crore to INR 5010 crore. However, its total expenses also went up by about 62%, from INR 3883 crore to INR 6277 crore. The cost of materials increased by 75%, and employee expenses rose slightly by 3%. Despite the revenue growth, the company’s losses grew by 8%, from INR 1472 crore in FY23 to INR 1584 crore in FY24.

    Looking ahead, Ola Electric anticipates that electric two-wheeler adoption will reach 41-56% by FY28. Its vertically integrated model spans R&D, technology development, manufacturing, sales, service, and charging infrastructure, with plans to incorporate its cell technology by Q1 FY26.

    While Ola Electric achieved strong operational growth, challenges persist. Its net loss widened 8% in 2024. Nevertheless, Goldman Sachs forecasts that Ola Electric’s revenue will expand at 2.5 times the rate of its peers, with volume growth expected to outpace competitors fivefold over the next three years, setting the stage for potential EBITDA breakeven soon.

    Ola Electric – Advertisements and Social Media Campaigns

    Ola’s marketing strategy has strategically leveraged its brand recognition and environmental messaging to boost its presence in the electric vehicle market. Here’s an overview of Ola’s promotional approach and targeted advertising efforts:

    1. Eco-Friendly Brand Messaging: Ola Electric has centered its marketing around the eco-conscious benefits of electric scooters, emphasizing reduced emissions and cost-effectiveness. This approach appeals to the growing environmental awareness among consumers, especially younger audiences who value sustainable choices.
    2. Targeted Advertising Campaigns: To reach potential customers, Ola Electric has launched focused ad campaigns that highlight the financial and ecological advantages of EVs. By showcasing lower operating costs, emission reductions, and ease of use, the campaigns effectively communicate the benefits of transitioning to electric scooters.
    3. Influencer and Celebrity Partnerships: Collaborations with influencers and celebrities have helped Ola amplify its brand message and reach a wider audience. These endorsements, targeted at a youth-centric market, enhance the brand’s appeal and establish a relatable connection with potential customers.
    4. Youth-Centric Advertising Campaigns: Ola’s 2017 campaign, which targeted young, ethically-minded consumers, emphasized the importance of tackling urban challenges like traffic congestion and pollution. This campaign resonated with socially aware young people who are interested in creating positive change in their communities.
    5. World Environment Day Campaign #FarakPadtaHai: Launched on June 5, 2017, this campaign encouraged nationwide awareness of ride-sharing as a means of reducing pollution and traffic. Through a TV commercial and other offline activities, Ola fostered a sense of responsibility towards the environment, further solidifying its eco-friendly brand positioning.
    6. The Shared Pass Initiative: Ola introduced a shared pass at an affordable rate of ₹1 to promote shared travel, overcoming initial reluctance among users about ride-sharing with strangers. This campaign successfully increased shared ridership, reflecting Ola’s ability to engage users and drive the adoption of shared transportation solutions.

    Ola Success Story – Funding, Founders, Team, Revenue and More
    Formerly known as Ola Cabs, Ola was founded in December 2010 by Bhavish Aggarwal and Ankit Bhatia. Here is the story of Ola, and how it all started for them!
    StartupTalkyShubham Kumar

    Ola Electric – Awards and Achievements

    Ola Electric’s achievements and recognition reflect its innovation and leadership in the electric vehicle industry.

    1. IHS Markit Innovation Award (CES): Ola Electric received this award at CES for its groundbreaking design, performance, and smart features, setting new standards for electric scooters in India and globally.
    2. German Design Award: Ola Electric was recognized for the sleek and innovative design of its scooters, reinforcing its appeal in both aesthetics and functionality.
    3. Advanced Chemistry Cell (ACC) Battery Storage Capacity Allocation: Awarded in March 2022 under India’s Production Linked Incentive (PLI) scheme, Ola Electric received a 20GWh capacity allocation for ACC battery storage, entitling it to five years of incentives to advance EV battery development.
    4. Electric Scooter of the Year – Car&Bike Awards 2023: The Ola S1 scooter won this category, prevailing over competitors like the TVS iQube S, Vida V1 Pro, and Okinawa Okhi-90 for its excellence in performance and design.
    5. PLI-Automotive Certificate from ICAT: In March 2024, the International Centre for Automotive Technology (ICAT) awarded Ola Electric the PLI-Automotive Certificate, recognizing its pioneering contributions to electric mobility under the PLI scheme.
    6. WomenIN Leadership Award at UK-India Awards 2024: Ola Electric was honored at the UK-India Awards for its commitment to diversity and leadership in the EV sector, emphasizing its role in promoting inclusivity within the industry.

    These awards highlight Ola Electric’s dedication to innovation, design excellence, and sustainable mobility, positioning the company as a leader in the electric vehicle industry.

    Ola Electric – Competitors

    Ola Electric faces competition from several prominent players in India’s rapidly growing electric vehicle (EV) sector, particularly in the two-wheeler segment:

    Ola Electric – Future Plans

    Ola Electric has positioned itself at the forefront of India’s electric vehicle (EV) transformation, with ambitions that extend beyond two-wheelers to broader electrification and energy independence. By leveraging new funding and strategic partnerships, Ola is scaling its operations and product lineup:

    Recent Funding and Expansion

    • October 2023 Funding: Ola Electric secured INR 3,200 crores (~USD 385 million) from investors like Temasek and project debt from the State Bank of India. These funds will drive expansion into new product lines and support the setup of India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
    • Gigafactory and Lithium-Ion Cell Manufacturing: As the first Indian EV company selected for the government’s Advanced Chemistry Cell (ACC) Production-Linked Incentive (PLI) scheme, Ola is building a pioneering lithium-ion battery cell manufacturing unit, with an eventual target capacity of 100 GWh, significantly boosting India’s local EV supply chain.

    Product Portfolio Expansion

    • Scooter Range: Ola’s recent Gen-2 platform has allowed for an expanded lineup of electric scooters, including the S1 Pro, S1 Air, S1X+, S1X (3kWh)and S1X (2kWh), covering a broad range of price points from INR 89,999 to INR 1,47,499. This lineup enhances accessibility for various consumer segments.
    • Upcoming Electric Motorcycles: Ola has announced four models—Diamondhead, Adventure, Roadster, and Cruiser—designed to meet different consumer preferences and expected to launch by the end of 2024. These motorcycles reflect Ola’s commitment to style and advanced engineering in the EV segment.

    Vision for India’s EV Ecosystem

    Ola Electric aims to lead India toward energy self-sufficiency by strengthening domestic manufacturing of critical EV components and creating a robust battery supply chain. Through its diversified portfolio and pioneering facilities, Ola Electric is setting a high standard for innovation and scalability in India’s EV market, positioning the country as a central hub for future-ready technology and sustainable energy solutions.

    FAQs

    Who is the founder of Ola Electric?

    Bhavish Aggarwal is the co-founder and CEO of Ola Electric.

    What does Ola Electric do?

    Ola Electric makes electric scooters and works on other electric vehicle technologies to reduce pollution and promote clean energy.

    When was Ola Electric founded?

    Headquartered in Bengaluru, Ola Electric was founded in 2017.

    Who are the competitors of Ola Electric?

    The main competitors of Ola Electric include Ather Energy, Hero Electric, Bounce Infinity, Ampere Vehicles, Greaves Electric Mobility, and more.

  • Battery Reuse, Funding, and Skilling Among Areas That Could Steer India’s EV Growth

    After a trailblazing performance in 2023, India’s electric mobility is set to be the hero performer yet again in 2024, even amid global slowdown worries and job cuts. However, the rush for EV vehicles has thrown open a new set of challenges for the sector. EV companies, component manufacturers, and researchers that StartupTalky spoke with list out some of the roadblocks that lay ahead.

    Charging Infrastructure
    Sourcing and Recycling of EV Batteries
    Trucking Industry
    Funding
    Attracting a Talent Pool

    Charging Infrastructure

    While India’s EV makers have been experiencing roaring sales, the shortage of EV charging infrastructure is not only creating a gap for easier mobility but also stopping several potential EV owners. Be it non-functional charging stations or cars running out of charge and coming to a standstill, addressing EV charging issues has become detrimental to the further growth of the sector.

    “The Indian government’s ambitious plans, coupled with private sector participation, are accelerating the deployment of charging infrastructure, thereby addressing one of the key challenges in EV adoption,” said Rohan Shravan, founder and CEO of Tresa Motors.

    In July 2023, the Confederation of Indian Industries called for a dire need to increase the number of charging stations to meet the demand for transitioning to electrification of vehicles in the coming years. This would eventually lead to 1.32 million charging stations by 2030, the report said.

    “At present, about 40% of total installed capacity in India is renewable energy based. On the other hand, the grid infrastructure is aging, and the power demand from electric vehicles has already started straining the grid,” said Akanksha Goluchha, lead – clean energy and e-mobility at the National Resource Defense Council’s India branch.

    NRDC is a cohort of leading online activists, scientists, lawyers, and other environmental specialists to help the world confront the climate crisis.

    “Intelligent charging solutions that include smart grids, smart meters, smart charging systems, wireless sensors, etc. can help schedule EV charging based on periods of high renewable energy generation,” Goluchha added.

    The government-initiated National Highways for Electric Vehicles plans to electrify 5,500 kilometers of existing highways across 23 cities and 12 states.

    India Electric Vehicle Market Size, 2022 to 2032
    India Electric Vehicle Market Size, 2022 to 2032

    Sourcing and Recycling of EV Batteries

    EVs rely primarily on lithium-ion batteries, which contain specific metals and minerals. As of now, India sources most of the EV battery components from China, which in turn makes it costlier by the time the EV hits the showroom.

    To reduce India’s reliance on imports amid rising demand for EVs, Finance Minister Nirmala Seetharaman in her 2023–24 Union Budget exempted customs duty on capital goods and machinery needed to manufacture lithium-ion cells locally.

    “Indian-manufactured cells are expected to be launched in 2024, this development will help reduce the cost of batteries, creating opportunities for unit profitability and, subsequently, price reductions for consumers,” said Sumeru Shah, Business Head, EV Two-Wheeler at Ecofy.

    However, to make optimum use of the minerals stashed inside the batteries, India also needs better management of the retired battery cells.

    “How do you dispose of these batteries when they’re consumed in volumes like today? Today, we’ve got all these cars being crushed, and the metal from cars being reused. So there’s a lot of sustainability that happens today. But with electric vehicles, that’s still a challenge. How do you dispose of the batteries? The batteries that we use for our torches, our cell phones… how do we sort of dispose of them in a manner that it’s sustainable and doesn’t damage Mother Earth?,” said Anil Kempanna, Chief Executive Officer at Cientra, which offers solutions across semiconductors, embedded software, automotive, and telecom sectors. 

    Co-founder of electric bicycle company E Motorad, Sumedh Battewar, points to recycling batteries as an effective way to source battery components.

    “The key solution to this is recycling and reuse. Today, this chain is broken. Today, even if a cell is short, I have no use for it; I have to throw it out. I believe that, with time, an ecosystem will get built up. Because this (recycling of batteries) has a lot of value where a business can be built,” Battewar said.

    EV Investments Surge, But Hopes Pinned on Govt Policy Push
    As investments in electric vehicles soar, the future hinges on government policies. It, however, remains to be seen if India manages to hit a sweet spot in the EV sector.
    StartupTalkyPrithvi Durai

    Trucking Industry

    For India to successfully transition to clean mobility, trucks, and vehicles will play a key role in the transport electrification revolution.

    “Almost 90% of our emissions from the transport sector come from road transport. And if you zoom down to the road transport sector as well, almost 10–15% is coming from trucks. So trucks have a direct relationship, so we have to look into these kinds of aspects to assess how we are going to decarbonize the sector as a whole,” said Narayankumar Sreekumar, Associate Director at Shakti Sustainable Energy Foundation.

    In September 2022, India’s think tank, NITI Aayog, along with RMI, released a report – ‘Transforming Trucking in India’. The joint report pegged India’s trucks to more than quadruple, from 4 million in 2022 to roughly 17 million trucks by 2050.

    Among a host of measures suggested by the report, one of them involved moving towards zero-emission trucks.

    “Zero-emissions trucks (ZETs), including battery electric trucks (BETs) and fuel cell electric trucks (FCETs), offer a compelling alternative to the diesel trucks that dominate India’s road freight today. ZETs do not have tailpipe emissions and have lower operating costs, presenting an opportunity for India to showcase how the adoption of ZETs is economically efficient and better for air quality, public health, and the environment,” the report said.

    Funding

    Being a capital-intensive sector, any funds flowing into EV companies can come as a reprieve. 

    “In the coming year, 2024, we eagerly seek funding partners to propel our innovations to the next stage, marking another chapter in our journey towards revolutionary advancements,” said Bharath Anantha Srinivas, the CEO of Technovos Machinery Private Limited, a provider of sustainable commercial materials movement equipment.

    It’s no surprise, then, that EV sector investments are on the rise.

    Perpetuity Capital, a fintech company offering loans to EVs, and Mufin Green Finance plan to invest in 1,000 EV companies in India this financial year.

    According to media reports, EV funding in 2023 reached a record of $169.4 million, up 79% year over year. However, for a sector that is touted to grow at a rapid pace, funding requirements also need to be commensurate.

    “Going forward, India needs significant investor support to realize the $100+ billion EV opportunity. As the landscape evolves, investors need to evaluate potential assets based on five criteria: sustainable competitive advantage, GTM and distribution capabilities, customer feedback and brand perception, talent and culture, and manufacturing and supply chain strategy,” said a report by Bain & Company.

    Attracting a Talent Pool

    Skilling talent to meet the rising demand from the EV segment poses the next big challenge for the sector.

    Speaking at the EV Expo in December, Minister of Road Transport and Highways Nitin Gadkari said India is likely to see over five crore jobs in the EV sector by the end of this decade.

    A report by staffing and HR solutions company Adecco showed that, among other sectors, the EV segment has been hiring the fastest in the last five years.

    “Upskilling and reskilling will be crucial for the electric vehicle (EV) industry. Our initial efforts are primarily focused on upskilling rather than skilling new people, where we are interacting with numerous academic institutions, colleges, and polytechnics. They have requested our assistance in terms of helping them upgrade the curriculum and plug in the credentials and National Occupational Standards (NOS),” Arindam Lahiri, CEO of the Automotive Skills Development Council (ASDC), said in an interview with the National Skills Network.

    Conclusion 

    While the EV segment is all set to be the showstopper in this decade, easing some of the challenges, such as recycling batteries, smoothening infrastructure roadblocks, funding the sector, and upskilling talent, could ensure that India’s sustainable mobility sector turns into a force to reckon with.

    The Future of Electric Vehicles In India
    The electric vehicles market is seeing growth spurge in recent years. Find out what will the future of electric vehicles look like in India.
    StartupTalkyHimangi Khare

  • Neil Unadkat Co-founder and CTO of Intangles Lab, Advises to Prioritize Solution Development Over Feature Selling

    StartupTalky presents Recap’22. This is a series of interviews in which we conduct in-depth discussions with founders & industry leaders to understand their growth in 2022 and their predictions for the future.

    Artificial intelligence (AI) is being increasingly used in the field of mobility to improve the efficiency, safety, and sustainability of transportation systems. The goal of mobility planning is to create transportation systems that are sustainable, efficient, and equitable for all users. This can be achieved through a combination of infrastructure improvements, policy changes, and education and outreach programs.

    Mobility planning is the process of designing and implementing transportation systems that are efficient, safe, and accessible for all users. The field of mobility planning has grown in recent years as more emphasis has been placed on creating sustainable, efficient, and accessible transportation systems.

    According to a report by MarketsandMarkets, the global smart mobility market is expected to grow from $66.34 billion in 2020 to $173.75 billion by 2025, at a CAGR of 21.7% during the forecast period. This growth is driven by factors such as increasing urbanization, the need for sustainable transportation, and advancements in technology. However, please note that this information is based on a specific market research report, and the actual growth rate may vary depending on the specific sources and data.

    For this Interview, we invited Mr. Neil Unadkat, Co-founder and CTO of Intangles Lab Pvt. Ltd., and we talked about the growth, challenges, insights, and future opportunities in the Mobility industry.

    StartupTalky: Neil, what service does your company provide? What was the motivation/vision with which you started?

    Neil Unadkat: Intangles Lab started operations in 2016. Our passion for data sciences and automobile technologies led us to the exploration of On-Board Diagnostics data streams on commercial vehicles, including trucks and buses, which opened doors to a vast arena of opportunities.

    With a clear use case in sight, we developed our hardware interface capable of collecting data from CV (Commercial Vehicle) platforms across OEMs, fuel injection, and emissions technologies. This was augmented with a state-of-the-art edge-to-cloud communication backbone and a suite of proprietary algorithms targeted toward predictive health alerts, driver behavior profiling, fuel pilferage, and geospatial intelligence.

    Our vision is to become the global de facto standard for predictive AI in mobility. Our solutions are focused on the health of the vehicle, driver behavior analysis, and efficient operations automation. We have taken the approach of creating digital twins of specialized power-train functions such as battery charging, engine cooling, fuel injection, and assisted air intake. Historic and real-time data helps deliver alerts of possible failures, leading to a significant reduction in the on-road breakdown of vehicles, thereby increasing operational hours and lowering maintenance/repair costs.

    31 Automobile Business Ideas and Car-related Business Ideas
    Have a look at these 31 Automobile and Car-related business ideas to start in 2022. From Automobile Franchise, Limo Service to Food Truck & more.
    StartupTalkyRishita Jain

    StartupTalky: What new services have been added in the past year? What is/are the USP/s of your service?

    Neil Unadkat: In 2022, we launched a new Inline Driving Scorecard feature that enables fleet operators to monitor and analyze erroneous driving practices and incentivizes good driving behavior. The Scorecard provides accurate feedback on
    gear utilization trends, idling instances, and other erroneous driving practices, thereby improving fuel efficiency and the overall health of the vehicle. It takes into consideration different driving and ambient conditions and vehicle specifications. Fleet operators witnessed an impressive 12-15% improvement in fuel economy on utilizing the feature.

    2022 marked our foray into vigorous revamps in the EV sector. We built comprehensive feature sets around cloud-integrated range prediction. Range prediction has always been a major roadblock when it comes to the widespread adoption of EVs and different vehicles on the same route are found to exhibit a high level of variance in battery discharge rates (2%-15%).

    In addition to that, the Digital Information System (DIS) estimates of Distance To Empty (DTE) are highly unreliable. As a result, ad hoc charging sessions based on spurious DTE readings lead to schedule disruption. Intangles’ platform provides comprehensive data on the number of charging cycles from the moment our device is installed on the vehicle, as well as backtracked data from the moment the vehicle hits the roads. This is done by taking into account the Battery Management System (BMS) degradation levels over time. We also provide accurate SOC and DTE predictions considering varying ambient and driving conditions. In addition to weather forecasts, the model has been trained to make predictions around motor torque, wheel speed, and sunset-sunrise trends, which influence HVAC and lighting. This multi-parametric approach enables consistently accurate predictions across dynamic ambients, traffic conditions, and routes.

    Our core differentiator is the derivation of easily discernible, actionable insights from complex telemetry data streams targeted at fulfilling the KPIs of the everyday fleet manager. These envelopes have highly accurate performance statistics (fuel consumption, distance, run hours), predictive alerts for failure with the highest levels of precision, diagnostics alerts with elaborate metadata (causes, repair strategies), and comprehensive reports on schedules and pilferages.

    StartupTalky: How has the mobility industry changed in recent years, and how has your company adapted to these changes?

    Neil Unadkat: Over the last couple of years, the automotive industry has undergone significant changes. The government’s introduction of new policies and norms has facilitated the development of new and complex technology. These developments have also been accompanied by complications for fleet operators as the inflow of massive amounts of data and the number of unknown variables when the vehicle is on the road keeps increasing. The technology has progressed by leaps and bounds and demands that operators keep pace.

    Our solutions are aimed at helping them navigate these challenges by adapting and updating our technology in accordance with the latest trends. We also aim to provide them with better visibility into their fleets using our ML-driven data insights. This has facilitated better profitability for our customers, growth for our organization, and new and better technology for the industry at large.

    Neil Unadkat: We always encourage interactive and productive discussions with our end users regarding their pain points and difficulties. Our efforts are aimed at centering our offerings based on these discussions. In addition, on-field real-
    time feedback     provided by our fleet operator partners gives us scrupulous insights into the latest trends in the industry.

    When it comes to our OEM partners, we are constantly in touch with experts and thought leaders who drive the industry toward growth. These conversations help us better understand upcoming and projected developments within the industry.

    StartupTalky: What key metrics do you track to check the company’s growth and performance?

    Neil Unadkat: If we talk about metrics and performance, there are a few things I would like to highlight.  

    • We are constantly generating around 1,00,000 predictive alerts per month, which has enabled as much as a 75% reduction in breakdown events.
    • Tracking over 400,000 liters of fuel pilferage through our devices equipped in Indian fleets.
    • Recording a 20-30% improvement in driver behavior through our monitoring of 20+ driver behavior exceptions.
    • Bringing about a 10-30% increase in asset availability owing to a reduction in vehicle breakdowns.
    • Helping reduce vehicle maintenance costs by 5-10%.

    We have witnessed staggering growth when it comes to revenue. As of today, we have onboarded 7 OEMs in the 11 countries where we are now operating. Furthermore, the platform already has over 8,000 fleet operators. We enroll around 800 fleet operators every month and collect an astounding 5 billion sensory data points per day. We estimate 5x growth in FY’23, with some of the top brands in mobility already signed up as customers.

    StartupTalky: What were the most significant challenges your company faced in the past year, and how did you overcome them?

    Neil Unadkat: The most significant challenge we have faced in the past year has been keeping up with our staggering growth numbers. We have been pouring all our efforts into upholding the quality standards of our solutions while sustaining our growth. Ensuring that our customers get only the best-in-class service has been our foremost priority, and to maintain that, we have been multiplying our resources on all fronts. We have also had to assess, evaluate and rethink some of our strategies going forward to sustain the progress.

    StartupTalky: Good service is something everyone is talking about in the service industry. How do you ensure that your clients are happy?

    Neil Unadkat: Our aim has always been to ensure our customers overcome the issues they originally approached us with. After resolving those issues, we direct our efforts to keep up with the varying demands of the market to meet their requirements. This is accomplished through constant updation and revamping of our technology and customer experience strategies.

    StartupTalky: Foreign clients- this is what most service-based companies are looking for. What has been your experience?

    Neil Unadkat: Globally, we have a diverse range of fleet operators in the automotive sector, but they majorly end up suffering from similar pain points. Their efforts are focused on increasing the efficiency of their fleets, gaining better
    visibility, avoiding breakdowns and malfunctions along with saving on expenses. After gaining a comprehensive understanding of our value propositions and solutions, operators across different demographics are keen on adapting our technology.

    We aspire to become the Digital Twin Open-Source Software (OSS) of the world across every segment. Our vision is to bring the power of Digital Twin technology to every segment across the globe so that it is accessible and benefits everyone. While we are cementing our position in the Indian mobility ecosystem, the prospect of new opportunities in North America, Europe, Australia, and APAC is highly promising. Our remarkable development and expansion story exemplifies the game-changing potential of Predictive Analytics enabled by Digital Twin technology. We will continue our efforts to redefine performance benchmarks in mobility and transportation in FY’23.

    StartupTalky: What are the important tools and software you use to run your business smoothly?

    Neil Unadkat: The majority of the tools we use have been custom-built by us internally and are well-integrated to fulfill the core applications and requirements of our product. We have also integrated third-party systems for internal tooling in
    functions like sales, inventory, and production planning.

    StartupTalky: What opportunities do you see for future growth in your industry in India and the world? What kind of difference in market behavior have you seen between India and the world?

    Neil Unadkat: The Indian government has been heavily investing in improving road infrastructure. We also project significant growth in long-haul travel and last-mile deliveries. The nation is embracing a more connected ecosystem to use data to understand and improve every element within the system. Data sharing positively impacts the operations, service, maintenance, routing, dispatch, and other core functions of a fleet. With more connected vehicles hitting the road and sharing extensive data, the industry is scheduled to be the fastest-growing segment in terms of machine-to-machine connections.

    Electric vehicles have also generated a stir across the industry, with factors like sustainability and efficiency at the forefront. Moreover, automakers are continuously increasing their efforts to provide a diverse range of AI-driven features. For instance, complex driver monitoring systems that evaluate driving behavior, cognitive-behavioral processes, and vehicle health diagnostics are being designed using machine and deep learning algorithms.

    Top 10 Automobile Startups In India To Know In 2020 – StartupTalky
    The automotive industry is a pillar of Indian economy and the automotive industry contributes more than 7% to the total GDP. Auto industry is recognised as a ‘sunrise industry’.
    StartupTalkySouvik Dey

    StartupTalky: How do you plan to expand the Customers, service offering, and team base in the future?

    Neil Unadkat: We are aiming to deploy our devices across the entire Commercial Vehicle segment. This also involves vigorous revamps in the Electric Vehicle segment through our extensive Ambient Cognitive AI technology that gives you
    real-world performance numbers. We are helping organizations meet the regulatory emission norms in accordance with CPCB – 4 and IUMPR requirements according to OBD regulations. We are also working towards bringing Over-The-Air (OTA) software updates for the ECUs. We are helping fleet operators stay ahead of the curve by getting better visibility on complex powertrains and simplified analysis of their fleet’s health and daily operations.

    To keep pace with our massive demand in the market, we need to maintain a growing workforce that can excel and fulfill requirements. To sustain a growth rate of over 200% year-on-year, we are expanding our workforce on multiple levels throughout the organization. In line with our expansion plans, we plan to expand our workforce domestically and internationally.

    StartupTalky: One tip that you would like to share with another Service company founder?

    Neil Unadkat: Your primary focus should be on developing solutions rather than feature selling. As long as your organization is able to solve a customer’s problems, they will always be open to working and experimenting collaboratively on new features and developments.

    We thank Mr. Neil Unadkat for spending his valuable time and sharing his learnings with all of us.

    You can read other Recap’22 Interviews here.