A

Dissertation

ON

“FUTURE OF ELECTRIC AND HYBRID-ELECTRIC VEHICLES”

.
SUBMITTED BY
MR. SANDIP RAMDAS DALVI

(MBA - MARKETING)

UNDER THE GUIDANCE OF

PROF. MARUTI DHANAWADE

SUBMITTED TO

“SAVITRIBAI PHULE PUNE UNIVERSITY”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)
THROUGH

1
 C E R T I F I CA T E

This is to certify that the project report titled “FUTURE OF ELECTRIC AND HYBRID-
ELECTRIC VEHICLES” is being submitted herewith for the award of the degree of Master of
Business Administration (MBA) Programme of Savitribai Phule Pune University, is the result of
the Dissertation work completed by Mr. Sandip Ramdas Dalvi under our supervision and
guidance.
To the best of our knowledge and belief, the work embodied in this project report has not
formed earlier the basis for the award of any degree or similar title of this for any other
University or examination body.

Dr. M.S.Dhanawade Dr. Anamika Singh

Project Guide Director
Place: Pune

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 SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATIONS (SIMCA), PUNE

(2018-2020)

DECLARATION

I SANDIP RAMDAS DALVI hereby declare that the Dissertation Report entitled “FUTURE OF ELECTRIC
AND HYBRID-ELECTRIC VEHICLES ” written and submitted by me to the Savitribai Phule Pune
University, in partial fulfillment of the requirements for the award of degree of Master of Business
Administration under the guidance of Prof. MARUTI DHANAWADE is my original work and the conclusions
drawn therein are based on the material collected by myself.

Place: Pune SANDIP RAMDAS DALVI

Date: ` Research Student

3
 ACKNOWLEDGEMENT

I present it is indeed a great pleasure and honor on mine to have the opportunity to submit this Dissertation
report. I am deeply indebted to many people for the successful completion of this Dissertation report. I would
like to take this opportunity and go on record to thank them for their help and support.

I thank my project guide Prof. Maruti Dhanawade Sir for his invaluable support, encouragement, supervision
and useful suggestions throughout this Dissertation.

I am extremely grateful to my institute for providing me the opportunity to undertake this Dissertation in the
prestigious field.

SANDIP RAMDAS DALVI

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 INDEX

Chapter No. Topic Page No.

Chapter-1 OBJECTIVE OF 5
PROJECT

Chapter-2 EXECUTIVE 7
SUMMERY

Chapter-3 LITERAURE REVIEW 13

Chapter-4 RESEARCH 28
METHODOLOGY

Chapter-5 DATA ANALYSIS AND 34

INTERPRETATION

Chapter-6 SUGGESTION & 45

RECOMMENDATIONS

CONCLUSION 46

HYPOTHESIS 47

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OBJECTIVE OF PROJECT

6
• To study the perceptions and expectations of potential, for alternative technologies in automobiles, such
as Electric/Hybrid Vehicles.

• To know why electric vehicle couldn‘t get enough consumer attraction

• To study the willingness of buyers of considering Electric/Hybrid Vehicles as a practical commuting

option and at when.

• To study the maximum price consumers can afford for buying an Electric/Hybrid Vehicles

• To study the other options available for Range Anxious Consumer with respect to existing batteries used
in Electric/Hybrid Vehicles

• To study the Government initiatives taken for promoting Electric/Hybrid Vehicles and subsidies
provided on Electric Vehicle batteries.

• To study the current expectations of consumers with respect to Electric/Hybrid Vehicles, this will lead to
its potential for future.

• To study the current threats, this is causing slow growth of Electric/Hybrid Vehicles.

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 CHAPTER- 2

EXECUTIVE SUMMERY

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 EXECUTIVE SUMMARY

India today is one of the top ten automotive markets in the world and given its burgeoning middle class
population with buying potential and the steady economic growth, accelerating automotive sales is expected to
continue. In the last couple of years, there has been a lot of discussion around the prices of fuel – apart from the
deregulation of petrol prices. Moreover the threat of disruption of supplies from the Middle-East has heightened
the debate on energy security and brought the focus on to alternate drivetrain technologies.

The potential for alternative technologies in automobiles such as electric vehicles (EV) in India, as in the case of
many other comparable markets, depends on improved battery technologies, driving ranges, government
incentives, regulations, lower prices and better charging infrastructure.

There seems to be a lot of interest on the part of Internal Combustion Engine (ICE) based manufacturers to adopt
electric technology, not just supplemental to the ICE, but as a stand-alone offering. There are also specialized
EV manufacturers that have come up all over the world.

While many of the factors that influence the EV market are understood intellectually, we carried out a consumer
survey to study perceptions and expectations of potential for alternative technologies in automobiles such as
electric vehicles (EV) and hybrid EV.

Assessing future demand for electric vehicles was somewhat challenging since it meant testing consumer
preferences for a product with which they are largely unfamiliar. For this reason, we focused on uncovering
consumers‘ familiarity with EV technologies and products; with their opinions around price, brand, range,
charging, the infrastructure, and the cost of ownership; and with the consumer‘s imagined ―fit‖ of an EV in his
or her lifestyle given a range of demographic parameters.

Automotive Industry in India

The automotive industry in India is one of the larger markets in the world and had previously been one of the
fastest growing globally, but is now seeing flat or negative growth rates. India's passenger car and commercial
vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9
million units in 2011.

Chennai is home to around 35-40% of India's total automobile industry and for this reason it is known as the
Detroit of Asia. It is on the way to becoming the world's largest Auto hub by 2016 with a capacity of over 3
million cars annually.

The majority of India's car manufacturing industry is based around three clusters in the south, west and north.
The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub near
Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region
contributes 32%. Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW,
Hindustan Motors, Daimler

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Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the
northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near
Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra
and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly
plants in the area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine
assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another
emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further
planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to
come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of
the other automotive manufacturing regions around the country.

• Electric vehicle and Hybrid vehicle (xEV) industry

During April 2012 Indian Government has planned to unveil the roadmap for the development of the domestic
electric and hybrid vehicles (xEV) in the country. A discussion between the various stakeholders including
Government, industry and the academia is expected to take place during 23–24 February. The final contours of
the policy will be formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport
and Power are involved in developing a broad framework for the sector. Along with these ministries big auto
industry names such as Mr Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra)
and Mr Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar) are also involved in this task. Government has
also proposed to set up a Rs 740 crore R&D fund for the sector in the 12th five year plan during 2012-17. The
idea is to reduce the high cost of key imported components such as the battery and electric motor and develop
such capabilities locally.

Electric car manufacturers in India

• Ajanta Group Hero Electric (Yo Bikes)

• Mahindra REVA Tara International
• Tata (Indica Vista) Chevrolet (Beat)

Manufacturing Facilities

Passenger Vehicles

General Motors India Private Limited Chevrolet Sales India Private Limited – Halol Maruti Suzuki – Gurgaon,
Manesar Mahindra REVA Electric Vehicles – Bangalore Toyota Kirloskar Motor Private Limited – Bidadi
Ssangyong Motor Company – Chakan Tata Motors Limited o Tata Motors – Pimpri Chinchwad, Sanand o
Jaguar Cars and Land Rover – Pune Mercedes-Benz Passenger Cars – Chakan Fiat Automobiles – Ranjangaon
Pune Volkswagen Group Sales India Private Limited o Volkswagen – Chakan o Audi AG – Aurangabad o
Škoda Auto – Aurangabad Chinkara Motors – Karlekhind Alibag Premier Automobiles Limited – Pimpri
Chinchwad Honda Siel Cars India – Tapukara BMW India – Chennai Ford India Private Limited – Maraimalai
Nagar Hyundai Motor India Limited – Sriperumbudur Mitsubishi – Tiruvallur Renault Nissan Automotive
India Private Limited o Nissan Motor India Private Limited – Oragadam o Renault India Private Limited –
Oragadam
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Two wheelers

Hero Moto Corp – Dharuhera, Gurgaon India Yamaha Motor – Faridabad Honda – Manesar Suzuki –
Gurgaon TVS Motors – Nalagarh, Mysore Mahindra & Mahindra – Pithampur Bajaj Auto – Waluj
Aurangabad, Chakan KTM Sportmotorcycles – Chakan Vespa Scooters – Baramati Pune Kinetic Engineering
– Ahmednagar, Pune Royal Enfield – Chennai India Yamaha Motor – Greater Noida

Commercial Vehicles

TAFE Tractors – Parwanoo Tata Motors – Jamshedpur Volvo Buses India Private Limited – Hoskote Force
Motors Private Limited – Pithampur Eicher Motors – Pithampur MAN Trucks India – Akurdi Pune Mercedes-
Benz Buses India – Chakan Piaggio Vehicles – Baramati Pune Ashok Leyland – Ennore, Hosur

About Electric Vehicles

During the last few decades, environmental impact of the petroleum-based transportation infrastructure, along
with the peak oil, has led to renewed interest in an electric transportation infrastructure. Electric vehicles differ
from fossil fuel-powered vehicles in that the electricity they consume can be generated from a wide range of
sources, including fossil fuels, nuclear power, and renewable sources such as tidal power, solar power, and wind
power or any combination of those.

An electric vehicle (EV), also referred to as an electric drive vehicle, uses one or more electric motors or traction
motors for propulsion. Three main types of electric vehicles exist, those that are directly powered from an
external power station, those that are powered by stored electricity originally from an external power source, and
those that are powered by an on-board electrical generator, such as an internal combustion engine (a hybrid
electric vehicle) or a hydrogen fuel cell. Electric vehicles include electric cars, electric trains, electric lorries,
electric aeroplanes, electric boats, electric motorcycles and scooters and electric spacecraft. Proposals exist for
electric tanks, diesel submarines operating on battery power are, for the duration of the battery run, electric
submarines, and some of the lighter UAVs are electrically-powered.

Electric vehicles first came into existence in the mid-19th century, when electricity was among the preferred
methods for motor vehicle propulsion, providing a level of comfort and ease of operation that could not be
achieved by the gasoline cars of the time. The internal combustion engine (ICE) is the dominant propulsion
method for motor vehicles but electric power has remained commonplace in other vehicle types, such as trains
and smaller vehicles of all types.

A hybrid electric vehicle combines a conventional (usually fossil fuel-powered) powertrain with some form of
electric propulsion. Common examples include hybrid electric cars such as the Toyota Prius. The Chevrolet Volt
is an example of a production Extended Range Plug-In Electric Vehicle.

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Electric motor

The power of a vehicle electric motor, as in other vehicles, is measured in kilowatts (kW). 100 kW is roughly
equivalent to 134 horsepower, although most electric motors deliver full torque over a wide RPM range, so the
performance is not equivalent, and far exceeds a 134 horsepower (100 kW) fuel-powered motor, which has a
limited torque curve.

Usually, direct current (DC) electricity is fed into a DC/AC inverter where it is converted to alternating current
(AC) electricity and this AC electricity is connected to a 3-phase AC motor. For electric trains, DC motors are
often used.

Electromagnetic radiation

Electromagnetic radiation from high performance electrical motors has been claimed to be associated with some
human ailments, but such claims are largely unsubstantiated except for extremely high exposures. Electric
motors can be shielded within a metallic Faraday cage, but this reduces efficiency by adding weight to the
vehicle, while it is not conclusive that all electromagnetic radiation can be contained.

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Environmental Impact of Electric and Hybrid Vehicle

Due to efficiency of electric engines as compared to combustion engines, even when the electricity used to
charge electric vehicles comes from a CO2-emitting source, such as a coal- or gasfired powered plant, the net
CO2 production from an electric car is typically one-half to one-third of that from a comparable combustion
vehicle.

Electric vehicles release almost no air pollutants at the place where they are operated. In addition, it is generally
easier to build pollution-control systems into centralised power stations than retrofit enormous numbers of cars.

Electric vehicles typically have less noise pollution than an internal combustion engine vehicle, whether it is at
rest or in motion. Electric vehicles emit no tailpipe CO2 or pollutants such as NOx, NMHC, CO and PM at the
point of use.

Electric motors don't require oxygen, unlike internal combustion engines; this is useful for submarines.

While electric and hybrid cars have reduced tailpipe carbon emissions, the energy they consume is sometimes
produced by means that have environmental impacts. For example, the majority of electricity produced in the
United States comes from fossil fuels (coal and natural gas), so use of an electric vehicle in the United States
would not be completely carbon neutral. Electric and hybrid cars can help decrease energy use and pollution,
with local no pollution at all being generated by electric vehicles, and may someday use only renewable
resources, but the choice that would have the lowest negative environmental impact would be a lifestyle change
in favour of walking, biking, use of public transit or telecommuting. Governments may invest in research and
development of electric cars with the intention of reducing the impact on the environment, where they could
instead develop pedestrian-friendly communities or electric mass transit.

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 CHAPTER- 3

LITERATURE REVIEW

14
REVIEW OF LITERATURE

The various articles, previous reports used for this projects has come from various sources Business Standard
Newspapers, Mint Newspapers

SUMMERY OF DELOITTE REPORT

Gaining traction: Will consumers ride the electric vehicle wave?‖ India results

The report broadly covers topics on:

• Market opportunity

• Target customers

• Barriers to adoption

• Conclusions

The analysis presented in the report was done with primary and secondary research, including interviews with
executives from major automotive OEMs, clean-tech start-ups, dealers, and energy companies, as well as a
survey of nearly 1008 current vehicle owners in India.

The study was carried out across 17 countries covering 13,500 respondents. To this qualitative and quantitative
data, was applied Deloitte‘s Demand Driven Analytics Methodology.

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MARKET OPPORTUNITY

• distinctive styling

• improving speed

• torque characteristics

• will make EV usage a satisfying experience

Further

• rapid rise of fuel prices

• desire to be on par with the rest of the world in terms of emissin would facilitate the
growth of the EV market.

16
TARGET CUSTOMERS

• potential first movers

• might be willing to consider

• category are from urban locations

• consisting of both genders

EVs are considered within the reach of the middle-class customer in most other markets, the manufacturers
selling EVs in India would have to target the upper- middle or rich customers.

Consumer Segmentation Profiles for Electric Vehicles in India

• Potential first movers 59%

• Might be willing to consider 34%

• Not likely to consider 07%

In China

• Potential first movers 50%

• Might be willing to consider 43%

• Not likely to consider 07%

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BARRIERS TO EV ADOPTION

They are:

• Battery charge time

• Expected purchase price after government incentives

• Acceptable price premium

• Range anxiety

• Fuel prices

Acceptable battery charging time

• 8 hours 24%

• 4 hours 27%

• 2 hours to 30 minutes 49%

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Expected purchase price after government incentives

In INR lakh

• <4 32%

• 4 to 7 33%

• 7 to 9 12%

In India, 76% of the total population surveyed would expect an electric vehicle to travel up to 320 kilometres per
charge before they would consider purchasing one. This indicates a gap in expectations versus current EV range
capabilities in India

While fuel price increase may not be the only factor that drives customers to buy EVs, it is a fact that they have a
mental benchmark of 130-150% of the current fuel prices that will make them reconsider EVs.

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Magazine Articles

―Is India Ready for a Green Drive‖ from ―The Journal of AIMA (All India Management
Association) Indian Management”, Vol.51 Issue Dated 6 June 2012.

This article is about the current motto ‗GO GREEN ‘ which is followed by all leading economies. It has a
brief description about US President obama’s vision of targeting One million Electric cars on US road by
2015.

It tells us about the various departments of Government of India formed for promotion and adoption of
Electric Vehicles.

The Ministry of New and Renewable Energy has been the front runner formed for promotion and adoption
of Electric Vehicles.

In November 2010, the ministry formulated The Alternative Fuels for Surface Transportation programme
under which 20% subsidy was provided t manufacturers.

Dr. Manmohan Singh announced an apex body, the National Council for Electric Mobility (NCEM), the
key objective of the NCEM is to provide sustainable electric mobility to make electric vehicles a viable
alternate vehicle by ensuring adequate support infrastructure for sufficient dissemination of electric
vehicles.

The Union Budget propped full exemption from basic customs duty and a concessional rate of excise duty
on batteries imported by electric vehicles manufacturers.

All this developments highlights the growing emphasis of Indian Government on encouraging the growth
of electric vehicles.

It also tells about the current nascent stage of Indian market with Mahindra Reva being the only player in
the electric vehicles market, it was able to sell 5000 cars since 2001 till 2011 with nearly 50% domestic
sales. Reva is a very well established player globally and currently sells in about 24 countries and is
looking to begin distribution in 40-50 countries by 2012.

It is seen that electric vehicles are becoming popular among women and students who don‘t have stringent
commuting requirements. It is predicted that once the supportive government policies are formulated the
market for these vehicles would become developed. India has a maximum market potential owing to an
established auto component infrastructure, low manufacturing and R&D costs, mechanical hardware
availability, high urban congestion and the presence of a large domestic market.

Price positioning is the main concern for electric and hybrid vehicles, owing to the expensive battery costs.
Reva is priced at a price point which is comparable to other petrol-driven budget hatch back (A segment)
cars while similarly Toyota Prius is positioned in a price category which falls in the luxury segment. The
high price combined with the low consumer awareness and environmental sensitivity is leading to the big
question on whether India is ready for such vehicles.

20
In fact, most manufacturers are planning to launch vehicles in other countries or have launched already
launched electric cars globally like Nissan Leaf and Mitsubishi iMiEV. in India by watching the Besides
infrastructure is also another concern for electric vehicles in India. Since these cars can run approximately
80km on one charge, they are recommended for short distance as charging infrastructure is not developed
in the country. There have been initiatives under which BSES in Delhi established charging ports in 50
locations across its sub-stations in the city. Likewise in Bengaluru, parking spaces in mall and offices have
been equipped with charging points for electric cars. However it is important to develop rapid charging
stations which can provide quick charging in lesser time.

The key challenge here is that for a developing country like India where we are struggling to deal with
problem of electricity shortage, do we have enough resources to build charging infrastructure for electric
vehicles. Also it is difficult to assess in the long run, if we are trying to reduce the carbon footprint by
decreasing the fuel-driven vehicles, or on the contrary are we burning more coal in the thermal stations to
generate the required electricity for charging these vehicles. As per statistics in India, transport contributes
to 7 percent of total green house gas emissions while electricity contributes to 35 percent.

Customer perception and out look further pose the challenge of product acceptability in India. Electric
vehicles are perceived to be under power vehicles at higher cost. The cars can only cover short distance of
about 80 km per charge and hence the value proposition for electric vehicles as a first car is also currently
non-existent as compared to petrol vehicle.

The whole phenomenon of electric vehicles have picked up in recent years owing to the increasing oil
prices and pressure on developed nations to reduce the carbon footprint. Globally smart cities are being
developed which are focused on promoting electric vehicle usage. Indian government is also planning four
smart cities in Manesar,Shendra,Changodar and Dahej to be built along the dedicated freight corridor.
These cities are being designed in association with Japanese firms like Hitachi, Mitsubishi and Toshiba
and would b based on successful models of Japanese cities Kitakyushu, Toyota City and Yokohoma.

Smart cities are going to be built under the main objective of 3-Rs: recycle, reuse and reduce. It would
focus on promoting energy efficient facilities with networking function along with environmentally
friendly public transportation system and personal vehicles.

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By 2020, India‘s population in cities is expected to grow manifold to a staggering 200 million while
population is expected to grow by five times as compared to 2010. With this tremendous growth has
emerged a very critical issue of keeping air and noise pollution in urban areas under control. It is desired to
have 3 lakh electric vehicles on the roads by 2020, including three-wheelers, cars and scooters which could
result in a reduction of over 16 lakh metric tons of population by 2020, savings of over Rs.3, 700 crore in
foreign exchange and significant health costs savings

22
Articles from Business Standard

23
24
Some Other Articles from DWS Auto Blog

“Do hybrids really reduce running costs and give better fuel efficiency?”

Hybrid cars are a likely future direction that cars in India will take now that the Government
is considering norms for hybrid cars in India. At the moment, there is only the Toyota Prius
that‘s on sale India at a price point of Rs. 30 lakh that is a true hybrid.

Recently, the Government said it is considering framing norms to convert existing petrol and
diesel cars to petrol-electric and diesel-electric hybrid vehicles. This would achieve two
things – one, lower pollution levels in congested cities and two, increase in fuel economy
would technically mean savings for the car buyer.

How much do you save driving a hybrid?

But by how much do hybrid cars really improve fuel economy and are there any considerable
savings when it comes to long-term running costs? That‘s something to ponder about.

Although these two cars are not strictly comparable, let‘s for a moment put them together to
compare notes – given that both cars are imports. Let‘s see how a Toyota Prius compares
with entry-level Audi A4 1.8 petrol, both priced around Rs. 29 lakh.

The Toyota Prius is powered by a 1.8 litre petrol engine that puts out 98 bhp of power,
coupled with a 35 bhp electric motor, making the car good for a total power output of 134
bhp. The Prius ―hybrid synergy drive‖ system can power the car on only the electric motor,
only the petrol motor or both together depending on the driving conditions. For city speeds up
to a range of about 30 km, the car can drive on electric power alone. When speeds go above
40 kmph, the petrol motor kicks in, and when peak acceleration is required the car uses both
motors for maximum power.

It is because of this hybrid combination that despite good performance, the car gives a
phenomenal mileage of 22 kmpl in the city.

Now, look at a regular petrol sedan like the Audi A4 with a 1.8 litre motor putting out better
performance of 168 bhp. It has better top-end performance no doubt, but when it comes to
pollution levels at slow city speeds and on fuel economy the Audi A4 loses out, as the petrol
motor is always running, while the Prius can run on electric power alone as needed. The Audi
A4 has a fuel-efficiency rating of 13 kmpl, giving only about 11 kmpl in the city, half that of
the Prius.

Long-term running costs are more expensive

So straight away, running costs should be half right? Not quite. The Prius uses far more
technology and hence has expensive maintenance. Also the battery packs in the Prius need
replacing after a few years, which would cost at least Rs. 2.5 lakh to replace. And that negates
all the savings on fuel cost that one would have saved because of better overall fuel
efficiency.

However, the reason to buy a hybrid is not just running cost or fuel cost – it is more to do
with the environment. With a hybrid you pollute just half as much as you would with a
25
regular petrol engine, not to mention consuming less fuel, which in its own way goes to
saving the planet. That‘s one of the reason celebrities have been lapping up hybrids like the
Prius – it gives to bragging rights about caring for the environment.

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Petrol-electric hybrid CNG VS Conversion: Pros and cons

The government recently said it is framing norms to convert petrol and diesel cars to petrol-
electric or diesel-electric hybrids. And one company, Revolo, is ready with a kit that can be
retrofitted in any petrol or diesel car, but costs about Rs. 60,000 to Rs. 80,000.

During the Auto Expo we came across some interesting gizmos, and one of them was the
Revolo hybrid solution, that promised to turn any car, petrol or diesel, into an electric hybrid.

About Revolvo

Revolo is a plug-in parallel hybrid technology that can be retrofitted in both existing and new cars.

This technology has been designed and engineered by KPIT Cummins and the product will
be manufactured through a joint venture (JV) of Rs. 100 crore (initial) between Bharat Forge
Ltd and KPIT Cummins. As part of the joint venture, KPIT Cummins will license the hybrid
technology while Bharat Forge will provide manufacturing, assembly & integration to the JV.

The idea of Revolo first occurred to a young KPIT Cummins engineer Tejas Khsatriya in
2008when he was stuck in Mumbai traffic en route to Pune.

KPIT Cummins sanctioned a team of four engineers for the project, which was kept separate
from CREST, the research and development centre at KPIT Cummins. It took 2 years of
research and a budget under USD 2 million to evolve the idea through trial and error and
several failures, including the inability of the system to withstand sudden surge in power
when breaks were applied.

The research and development team studied the firing pattern of internal combustion engines
and identified the weak spots that lead to fuel wastage and finally created a technology that
can convert a passenger car to a hybrid that is environmentally friendly, cheap, fuel-efficient
and at the same time offers good performance.

Revolo is designed to work in typical stop-and-go city traffic and allows cars to cruise at
about 30 km/h in the third gear without straining the engine.

Latest Developments: KPIT Cummins continues the road tests of pilot vehicles as well as
consumer trials with results so far having validated the pre-announced performance results.
The team has further reduced the overall weight of the solution, improved on the durability
and standardized many components across multiple vehicle platforms. Construction at the
assembly and manufacturing plants continues. It is expected to be operational by July 2011.

The company will test various vehicles, including passenger cars, with engines sizes between
800 cc and 2,500 cc.

Production of limited hybrid kits is planned to start by first half of 2011-12. The commercial
production would begin in 2012-13.

27
Cons of the Petrol-Electric System

The cost projection for installing such a system of between Rs. 60,000 to Rs. 80,000 is fairly
high. You need to drive over 2000 km a month to realize the benefits of the system. With this
kind of driving you would save about Rs 2,100 per month, making the system pay for itself
by the third year of use. However, in the fourth year, expect your savings to drop
considerably, as you would need to spend about Rs. 14,000 on new batteries. And this is a
recurring cost every three to four years.

CNG-petrol dual fuel systems

With a CNG conversion, the car can run on natural gas or petrol. Running it on CNG often
gives slightly better fuel efficiency – in the case of the Alto about 22 km per Kg of CNG.
With CNG prices at about Rs. 40 per Kg, it is nearly Rs. 30 cheaper than petrol per litre.

Pros of a CNG system

CNG conversion allows for pure CNG driving, without a drop of petrol being burned unlike
the petrol-electric system, where you only get a boost from the electric motor, but are still
consuming petrol. Therefore the savings (given the cost difference with petrol) are much
higher. You realize the investment in CNG much faster than you would with a petrol electric
system.

CNG filling networks are quite widespread in about 35 cities now, which means much easier
access to gas. Electric charging points are not easily accessible unless you have a garage or
easy access to a plug point. It also takes about 5 minutes to tank up on CNG, while it takes
about 8 hours for a full- charge of the batteries.

Cons of a CNG system

The size of the CNG tank takes up almost the entire boot in an Alto, leaving no space for
luggage. It also is substantially heavier and takes its toll on the suspension of the car. When
one travels out of town this becomes an issue as CNG networks don‘t exist outside of major
cities, forcing the driver to drive on petrol and negate any savings.
28
 CHAPTER - 4

RESEARCH METHODOLOY

29
RESEARCH METHODOLOGY

The main purpose behind the study was to meet the wants and needs of the consumers
and provide valuable information regarding Electric/Hybrid Vehicle. Also to know whether
the consumers

Primary data

The first hand data was collected by us through various sources. Sources of primary
data are the sampling units chosen.

Sample size

For the present study 60 respondents were selected.

Sampling technique

For selecting required respondents simple random sampling technique was used.

Tools and techniques

Tools for collecting primary data

Interview method

A Questionnaire of 16 Questions was prepared for which appropriate options were

made available for respondents to select from. The questionnaire was created with the help of
Google Docs which was in a format of Electronic Survey Form. It was easy to send the form
via mail to n number of users. Apart from this the Questionnaire was easily uploaded on
various social networking sites.

Observation

It was easy for respondent to fill up the questionnaire and submit it online, the result
of which was saving of time and reach maximum respondents.

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Secondary data

These are second hand readymade data collected by some other agency but not by
the researcher. Source could be internal or external records. Secondary data gives the
detailed information about the company. The main detail about when the company was
started, where the company was started, first etc. the secondary data gives all information
which is unavailable in primary data.

Sources of secondary data

Journals, Internet, Newspaper and Reports were used.

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The following is the questionnaire format

Hello I am the students of Sinhgad institute of management and computer application MBA 2nd year batch
is gathering information related to acceptance and knowledge of people about alternative technologies in
automobiles such as Electric/Hybrid Vehicles for our Research Methodology project. Please help us by
filling up this questionnaire which will take 10-15 minutes.

Please put a ( ) mark against each option where ever required.

Your Profession: - Student House wife Retired

Self Employed Job Other (please specify)

Gender: - M F

1) Do you have any vehicle? Yes No If yes total no. of vehicles

2) Is it a

Two Wheeler Three Wheeler Hatch Back Sedan SUV

MUV Pickup Truck Other (please specify)

3) Is most of your daily travelling in city, on the highway or mixed?

City Highway Mixed

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 4) Also let us know the mode of transportation you prefer and approx. distance travelled.

Own Vehicle Taxi/Auto Rickshaw Public Bus Train

<100km <150km >200km Other (please specify)

5) Have you heard about Electric/Hybrid vehicle? Yes No

6) Would you be interested in owning/converting your vehicle into Electric/Hybrid Vehicle?

Yes No Can‗t say

7) If yes then how much would you expect to be the price of an Electric Vehicle/ Hybrid Vehicle?

Two wheeler Three wheeler Hatchback

8) Would you like to know more about Electric/Hybrid vehicle? Yes No

9) If yes from which source? Television Ads Auto Expo Magazines

Live Demo Internet Websites Blogs Newspaper Ads

10) Where would you prefer to charge your Electric Vehicle if you were to buy one in the future?
At home At work Using public charging facilities

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11) What should be the range of an Electric Vehicle when fully charged? (In approx.)
Less than 100 km 100-150 km 150-200 km Other (please specify)

12) What should be the expected maximum speed of an Electric Vehicle? (In approx.)
Up to 80kmph 150kmph Other (please specify)

13) How much would you spend on changing the batteries once it gets exhausted? (In INR approx.)
5000 15000 250000 50000 Other (please specify)

14) How much subsidies you expect from Government on the price of batteries of Electric/Hybrid
Vehicles? (In approx.)
10% 20 % Other (please specify) _

15) How much premium would you pay for additional development or manufacturing cost of
infrastructure? (In INR approx.)

25000 50000 75000 100000 Other (please specify) _

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 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

35
The Result’s of the Questionnaire

The survey was taken with the help of 60 respondents out of which

36
1) Do you have any vehicle ? If yes ,Total no. of Vehicles.

2) If yes what is the vehicle type ?

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3) Would you be interested in owning Converting your vehicle into electric/hybrid vehicle ?

4) Is most of daily travelling in city. On the highway or mixed? Also let us know the mode
of transportation you prefer and approx distance travelled ?

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5) What is the the total approx distance travelled by you?

6) Have you heard about electric/hybrid vehicle ?

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 7) Would you be interested owning/converting your vehicle into electric hybrid vehicle?

If yes then how much would you expect to be the price of an electric vehicle/ hybrid vehicle?

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8) What is preventing you from purchasing an electric vehicle?

9) Would you like to know more about electric/hybrid vehicle? If yes from which source ?

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10) Where would you prefer to charge your vehicle if you were to buy one in future?

11) What should be the range of an electric vehicle when fully charged?

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12) What should be the expected maximum speed of an electric vehicle?

13) How much would you spend on changing the battery once it gets exhausted?

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14) How much subsidies you expect from government on the price of batteries of electric
hybrid vehicles?

15) How much premium would you pay for additional development or manufacturing cost of
insfastructure?

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Analysis of the Data

More no. of males compared to females has opted for the survey. A large no. of people have
their profession as job More of the two-wheeler owners were interested in buying/converting
their vehicles into Electric/Hybrid vehicles Most of the people (male) prefer their own vehicles
for daily travelling and the distance travelled by them daily falls in between 40-80 km. Most of
the people have their daily travelling in the city as well as on the highway (mixed) or only in the
city. A major section of female students has shown much interest to get more details about
Electric/Hybrid vehicles technologies. Most of the two-wheeler owners expect the price of their
electric vehicle (two-wheeler) should be in between 30000 to 60000 INR. Most of the Sedan
owners expect the price of their electric vehicle to be around 60000 to 100000 INR. It is assumed
with this price they are interested in converting their existing car into Hybrid Vehicles. It was
found that – The present cost of electric vehicles which is too high – The insufficient range on a
single charge – The lack of information about the technology before I would make a purchase

Where the main cause of concern and were preventing people from buying an Electric Vehicle.

Majority of the people would like to know more about Electric Vehicles from News Paper Ads
and Live Demo Vehicles. Almost all of the people would prefer to charge their vehicles at home
and from public charging stations. Which is a cause of concern as development of such
infrastructure is still in nascent stage. Though it was found that majority of the people daily
travel around 80km, however still most of the people would expect an Electric Vehicle to travel
around 80 to 150 km on single charge. The current Reva can cover 100 km (max.) when fully
charged. Majority of two-wheeler owners and hatchback owners are willing to pay around 5000
to 10000 and 20000 to 50000 INR respectively for the replacement of batteries once exhausted,
which is a positive response from consumers. An Electric Vehicle‘s batteries have to be replaced
with in 4-5 yrs (Min.) regularly which cost around 20000 to 50000 depending on quality of the
battery. Speed the Electric Vehicle is not a concern with people for buying an Electric Vehicle.
Even government subsidies are not a concern with people for buying an Electric Vehicle. It is
found that most of the people are ready to pay a onetime premium amount as an additional
development or manufacturing cost of infrastructure. It depends on the type of vehicles own by
people for e.g. two wheeler owners expect to pay a premium amount of 2000 to 5000INR.

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 CHAPTER 6

SUGGESTION AND RECOMMENDATIONS

46
CONCLUSION

The responses for the questionnaire proved to be crucial for the conclusion of our research as the
results were positive and where matching with what was predicted by us.

The perception of people towards EVs is still unsatisfactory as a major section of our society is
still unaware of various Alternative Technologies used in Automobiles.

The current EVs don‘t meet the consumer‘s expectations to a larger extent.

The Government Initiatives taken for the promotion of EVs is still in developing stage and is up
to papers, though various agencies have been formed and various plans have been brought by
them but still its implementation is not yet done.

The consumers will prefer EVs only if they are comparable with current vehicles on road, so a
change in consumer‘s behavior is important. They should gradually become more conscious
about the use of cleaner technologies.

Though many consumers will not prefer the current Electric/Hybrid vehicles but still there are
lots of options available which is built to meet consumer‘s expectations such as REVOLVO KIT.

Marketing of such products will really play an important role as a stepping foot towards
GREENER ENVIRONMET.

Various companies should take initiatives to promote electric vehicles as a part of their
corporate social responsibilities.

Finally the future of the Electric/Hybrid Vehicles is GREEN.

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HYPOTHESIS

By 2025, India‘s pollution in cities is expected to grow five times as

compared to 2010. It is desired to have 3 lakh EVs which could result in a
reduction of over 16 lakh metric tons of pollution by 2020, savings of over
Rs.3,700 crore in foreign exchange and significant health costs savings.

It is expected that the government will make regulations specific to financial,

incentives for manufacturers, parking and toll benefits to customers and
research and development grants to build next generation technologies.

The government will also form norms for promoting petrol-electric or diesel-
electric hybrids. We expect to see lots of Hybrid Vehicles on road within a
short span. The Revolvo Kit is meeting the current consumer‘s expectations
hence it will be preferred by consumers on a larger extent.

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