E L E C T R I C V E H I C L E S S E C T O R

H E A V Y V E H I C L E S E G M E N T

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2011: Launch of Reva asfirst mainstream electric car

2015: Launch of FAME-I as first-ever EV policy

2019: Launch of FAME-II policy

2019: Push on EV strengthened by significant tax benefits

E L E C T R I C V E H I C L E SIndustry Overview in India

Projected to be a USD 300 Billion industry by 2020

4.7 GwHstorage capacity by 2022

Dedicated National Policy in place : FAME-II

Over 750,000 vehicles sold in Financial Year 2019 so far

Proactive support from several Ministries and NITI Aayog

ELECTRICVEHICLES:

A BRIEF TIMELINE FOR

INDIA

0 1E L E C T R I C V E H I C L E S S E C T O R

The Indian electric vehicles ecosystem comprises of the following key segments:

Manufacturers– Automotive (OEMs)– Battery– Other Auto-components

Digital Technology Providers

Charging Infrastructure

Government and Regulatory Bodies

Financers– Banks– NBFCs

Users / Customers

T H E I N D I A N E V E C O S Y S T E M

0 2E L E C T R I C V E H I C L E S S E C T O R

INR 10,000 crore sanctioned for facilitating electric vehicles in India, launched from April 1, 2019

10 lakh registered 2-wheelers eligible to avail incentive of INR 20,000 each

Incentive of INR 50,000 to almost 5 lakh e-rickshaws having ex-factory price of up to INR 5 lakh

Incentive of INR 1.5 lakh each to 35,000 electric four-wheelers with an ex-factory price of up to Rs 15 lakh, and incentive of Rs 13,000

each to 20,000 strong hybrid four-wheelers with ex-factory price of up to Rs 15 lakh

Incentives to 7090 buses worth INR 50 lakh with ex-factory price up to INR 2 Crore

Cap on incentives for 2-wheelers to be 20% of the total vehicle cost

INR 1,000 Crore incentives for setting up electric vehicle charging stations, 5% GST (reduced from 18%) on charging stations

The demand incentive to be disbursed through an e-enabled framework and mechanism set up under the Department of Heavy

Industries

P O L I C Y S U P P O R T F O R T H EE L E C T R I C V E H I C L E S E C O S Y S T E M

0 3E L E C T R I C V E H I C L E S S E C T O R

Zero import duty on batteries, cells, motors, controllers and ICs

Components recommended for 0% customs duty (if imported from China): Lithium Ion Cell, E-Drive Assembly, Onboard Charger, Charging Gun

Manufacturers of components such as solar electric charging infrastructure and lithium storage batteries and other components will be

offered investment linked income tax exemptions under Section 35 AD of the Income Tax Act, and other indirect tax benefits.

5% GST (reduced from 18%) on buying electric vehicles

Income tax rebates of up to INR 1.5 lakh to customers on interest paid on loans to buy electric vehicles, with a total exemption benefit of INR

2.5 lakh over the entire loan period

P O L I C Y S U P P O R T F O R T H EE L E C T R I C V E H I C L E S E C O S Y S T E M

0 4E L E C T R I C V E H I C L E S S E C T O R

0 5E L E C T R I C V E H I C L E S S E C T O R

- Karnataka

- Delhi – NCR

- Uttar Pradesh

- Tamil Nadu

- Kerala

- Uttarakhand

- Telangana

- Andhra

Pradesh

S T A T E S I N I N D I A W I T H P R O M I N E N TE V I N I T I A T I V E S

C O M P O N E N T SO F T H E I N D I A N E V M A R K E T

0 6E L E C T R I C V E H I C L E S S E C T O R

INDIANEV

MARKET

2 WHEELERS

4 WHEELERS

BATTERY MARKET

CHARGING INFRA

HEAVY DUTY VEHICLES

3 WHEELERS

E L E C T R I C V E H I C L E S E C T O R 0 7

OVERVIEW

Best sales statistics along side 3-wheelers (among EVs) in

FY 2018-19

YOY growth 17.5%; Over 1 million units sold in FY 2018-19

Local market share divided between major industry

players as well as start-ups

FAME-II policy introduced by the Government in 2015 to

organize the sector and its ecosystem

GST rate of 5% on heavy electric vehicles

FUTURE

Projected complete electrification of all vehicles by 2030.

Realistic industry targets: 25-30%

Fast-tracking development of charging infrastructure

Setting up native lithium-ion battery production

Setting up new state policies; Higher budget allocation for

buses and heavy vehicles for transport and logistics

Investments by Daimler to the tune of USD 70 million, with

a mission to make India a global export hub

H E A V Y E L E C T R I C V E H I C L E SM A R K E T I N I N D I A

CHALLENGES

Unorganized and fragmented vehicle-charging

infrastructure across the country

Ever-evolving public policy structure; fluctuating policy

benefits influencing sales patterns

Relatively unknown developer base for lithium-ion battery

technology

Push needed for local manufacturing, similar to EV

industry leaders such as China

OPPORTUNITY

Corporate tax rate reduced to 15% for new manufacturing

companies set up in India after October 1, 2019

High scope of growth and investment, owed to a large

logistics industry requiring heavy vehicles

Dept. of Heavy Industries has granted approval to

deployment of 5595 electric buses in 64 Indian cities

LCVs have sold 564,409 units (+20.82%); M&HCVs at

351,128 units (+15.25%) in the 9 months of FY 2019 itself

E L E C T R I C V E H I C L E S E C T O R 0 8

H E A V Y E L E C T R I C V E H I C L E SM A R K E T I N I N D I A

S A L E S S T A T I S T I C S F O R H E A V Y E L E C T R I C V E H I C L E S

ManufacturerDomestic Sales (in units)

(Apr - Mar) Difference(in units)

Market Share (in %age)(Apr-Mar)

FY 2019 FY 2018 FY 2019 FY 2018

Ashok Leyland 115,613 102,826 12,787 32.93% 33.75%

Mahindra & Mahindra 11,014 9,484 1,530 3.14% 3.11%

SML Isuzu 2,780 2,307 473 0.79% 0.76%

Tata Motors 181,265 154,676 26,589 51.62% 50.77%

VECV - Eicher 39,230 34,316 4,914 11.17% 11.26%

VECV - Volvo 1,226 1,055 171 0.35% 0.35%

Total 351,128 304,664 46,464 100% 100%

E L E C T R I C V E H I C L E S E C T O R 0 9

ExistingFirms

Rivalry

LOW

OpportunityFor New Entrants

HIGH

Threat of Substitute Products

HIGH

Bargaining Power of

Buyer

MEDIUM

Bargaining Power of Supplier

LOW

E L E C T R I C V E H I C L E S S E C T O R 1 0

A N A L Y S I S O F H E A V Y E L E C T R I C V E H I C L E M A R K E T I N I N D I A

A B O U T T H E F I R M 1 1

C O I N M E N C O N S U L T A N T S L L PABOUT THE FIRM

Coinmen was founded in 2010 by 3 visionary partners, whose sole focus was to provide astute financial as well as business advisory & help companies in doing business in India

C O I N M E NW I T H A N E V F O C U S

A B O U T T H E F I R M 1 2

We are a firm of financial advisors, tax consultants, chartered accountants,business advisors, & corporate secretarial professionals who specialize in developing holistic strategies for companies enteringthe Indian market

Very few firms of our kind believe in the idea of disruption and taking risks. We tend to stem away from the herd with our pro-active involvement in the EV sector via insightful partnerships and an ever-evolving network.

Our service offerings are undertaken by dedicated service lines:

Corporate Secretarial Services

Tax and Regulatory Services

Financial Accounting Services

Corporate Finance Services

Audit And Assurance Services

WHAT WE DO

Setting UpA Business

TaxPlanning

Accounting

Transfer Pricing

Corporate Finance

Audit

O U R S E R V I C E S

A B O U T T H E F I R M 1 3

T H E T E A M

Nitin GargCo-Founder & PartnerFormer Manager, EY India (TRS)Specializes in Corporate Tax & International Tax

Vikrant SuriCo-Founder & PartnerFormer Manager, EY India (TRS)Specializes in Direct Tax & Tax Litigation Matters

Mohit AggarwalCo-Founder & PartnerChartered AccountantSpecializes in Corporate Finance &Debt Syndication

Nitish MittalAudit & Assurance PartnerFormer Sr. Manager, E&Y India (Assurance)Specializes in Internal Audit & Statutory Audit

A B O U T T H E F I R M 1 4

A team of ~100 professionals consisting of financial and business advisors, chartered accountants, corporate finance experts and auditors, Coinmen is a multi-disciplinary firm spread across:

100+ clients | 15+ industries | 6 practice areas | 2 continents

F O R E I G N B U S I N E S S D E S K S

S E C T O R & I N D U S T R Y E X P E R T I S E

Korea Business GroupHeaded by Daniel Lee

Japan Business GroupHeaded by Kenichi Tanaka

Infrastructure NBFCs

Auto Components

Electric Vehicles

TechnologyServices

Electronic Components

Healthcare Energy

AgriculturalCommodities

Education & Non-Profits

A B O U T T H E F I R M 1 5

Spain Business GroupHeaded by Berta Castells Pujol

France Business GroupHeaded byGunjan Uppal

Italy Business GroupHeaded by Gunjan Uppal

With new technologies disrupting the market every day, electric vehicles have come at a time where their need outweighs their disruptive nature. As a result, their adoption has been made paramount in India to ensure a cleaner future for its coming generations.

As solution providers, we intend to do our part by helping foreign and local companies connect the right dots to help them set up their electric vehicle businesses in India.

C O I N M E N C O N S U L T A N T S L L P+91 11 4016 0160 , +91 22- 26879849 | info@coinmen.in | www.coinmen.in

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