Siemens & IOC Partnership for E-mobility

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SIEMENS & IOC PARTNERSHIP FOR

E-MOBILITY
Arnav Gupta
Bhavik Nanda
Dishank Agrawal
Samarth Gupta
Shafiqur Rahman
Tanish Kalro
Tripti Gupta
INDIA’S
BUSINESS
ENVIRONMENT

Partnership between Indian Oil Corporation (IOC)


and Siemens to build electric car chargers and
stations within petrol stations, using the PESTEL and
Porter's Diamond models.
Bhavik Nanda

PORTER'S DIAMOND
MODEL
Factor Conditions:
India possess all engineers, technicians, and technical background in EV
charging infrastructure development and deployment which an
opportunity for automobile industry growth, if supported by the
government.

Demand Conditions:
India's growing middle class and fast growing urbanization play the
important role of providing the market for e-vehicles and related
supporting systems. Carbon reduction mandates together with the
growing consumer demand for the green transportation solutions

Related and Supporting Industries:


The Indian economy is characterized by its flourishing Automotive sector
and renewable energy field that can be infused to gain from these sectors
to develop charging stations for Electric Vehicles.
Firm Strategy, Structure, and Rivalry:
Siemens relies on close IOC cooperation and has to face the tough realities
of high competition in the EV charging sector. Among them will be well-
thought-of strategic alliances, unique business approaches and cost-
effective operations.
PESTEL FRAMEWORK Bhavik Nanda

01 02 03

Political Economic Social


The Government of India is busy adopting The Indian economy is in a growth spurt Environmental awareness and air pollution
different policies for electric vehicles (EVs) which inturn provides chances for the EV being main reasons, consumers are
through the scheme and market . The partnership may be affected attracted by the automobiles running on
incentives.Nevertheless, some political by the following factors like the consumer electricity. Even though a given region may
difficulties can be associated with the power of purchases, inflation and have a particular pattern in EV adoption
execution of a policy and management of investments in infrastructure. but the customer preferences and
regulatory requirements. attitudes towards EV adoption may vary
among different demographic divides.
PESTEL FRAMEWORK Bhavik Nanda

01 02 03

Technological Environmental Legal


Innovative technologies on EVs and Environmental rules and measures of Following regulatory rules in energy,
charging infrastructure both play vital roles sustainable development generate transportation, and infrastructure sectors
for the success of the partnership. Getting demand for EVs in India. Compliance with by itself is very important. Although there
advantage of advanced technologies as environmental standards and fostering of may be licensing, permit, and land
well as innovation capacities is one of the eco-friendly habits on the part of the acquisition problems during the project,
ways to achieve greater competitiveness. partnership will play a key role in this. such challenging situation is foreseeable.
Tripti Gupta

Market size
EV CHARGING Current market size (estimated): ₹1,420 crore (USD

INDUSTRY SIZE 170 million)

The market is expected to reach a staggering INR


18,520 crore (USD 2.22 billion) by 2027

This translates to a Compound Annual Growth Rate


(CAGR) of over 50%, indicating rapid expansion.
Tripti Gupta

KEY PLAYERS

Leading electricity provider Tata Power Company


provides both private and public charging options.

Fortum India is a Finnish clean energy company that


specialises in building infrastructure for public charging
in cities.

Major E2W player Mahindra Electric Mobility Limited


provides charging options tailored to electric two-
wheelers.

Leading provider of electrification technologies


worldwide, ABB India provides a variety of EV charging
options.
Tripti Gupta

GROWTH POTENTIAL

79% 55% 88%

High Growth Trajectory: Indian EV charging market will expand rapidly,


surpassing a CAGR of 50%.

Government Push: Encouragement of the development of charging


infrastructure through programmes like FAME II.

Growing EV Adoption: There is a great need for charging stations especially


for two-wheelers

Urbanization Factor: As more people live in urban areas, there is a growing


need for eco-friendly transportation choices, such as electric cars and the
infrastructure necessary to charge them.

Untapped Potential: As the EV ecosystem develops, there is a great deal of


space for growth as the industry is still quite small
Arnav Gupta

PORTER’S
COMPETITIVE
LANDSCAPE

Moderate Threat of New Entrants:


Low to Moderate Buyer Power:
The market's appeal is balanced by the high capital
Market Development leads to
requirements for massive networks.
customer options but their
purchasing power will still be limited.
Moderate Supplier Power:
Although standardisation reduces suppliers' clout,
in certain places their power may be limited by grid
and land constraints. High Level of Competition:
Market share is being fought for by
long-standing competitors, up-and-
Minimal Risk of Alternatives:
coming competitors, and recent
Although it hasn't been embraced much yet, battery
arrivals.
changing is a possible rival in the future.
Arnav Gupta
HOFSTEDE’S
CULTURE & VALUES
Power Distance (High):
01 Industry-government cooperation is possible, but
hierarchical structures may favour well-established firms.

Avoidance of Uncertainty (Varies):


02 Investment choices in developing markets may be
influenced by risk tolerance.

Moderate Indulgence:

03 It will be important to strike a balance between the long-


term advantages (EV adoption) and the short-term
satisfaction (reduced initial expenditures).

Moderate Masculinity:
04 The industry's approach (efficiency vs. user experience)
may be shaped by striking a balance between nurture and
achievement.

Individualism (Low):
05 An emphasis on collectivism could encourage teamwork
in the construction of EV charging infrastructure.
Dishank Agrawal

SWOT ANALYSIS
Strengths Opportunities
Siemens' brand reputation and reliability in power and Growing EV market driven by government incentives, rising fuel
automation solutions. prices, and environmental concerns.
Indian Oil Corporation's network of fuel stations in India. Multiple revenue streams including charging stations,
Extensive experience in designing, manufacturing, and installing maintenance contracts, data analytics services, and charging
EV charging stations globally. solutions.
Government support from the Indian government. Innovation in charging technology through R&D capabilities.

Weaknesses Threats
Limited experience in the Indian market. Increased competition in the Indian EV charging market.
High initial investment in charging stations. Changes in government regulations impacting Siemens' business
Slower charging time compared to conventional vehicles. model and profitability.
Unequipped power grid infrastructure due to widespread EV
adoption.
Dishank Agrawal

MARKET ENTRY ANALYSIS


Market Attractiveness: Market Entry Strategy:
High growth potential due to government incentives, rising fuel Leveraging IOCL Network for immediate access to fuel stations.
costs, and environmental awareness.
Focusing on multiple segments like private users, public transportation, and
Large untapped market with vast vehicle network and limited EV commercial fleets.
charging infrastructure.
Adapting technology and offerings to suit Indian conditions.
Government support through subsidies and tax breaks.
Building brand awareness through marketing campaigns.

Success Factors: Competitive Landscape:


Cost-Effectiveness offering charging solutions at competitive prices. Domestic players offering lower-
cost solutions.
Technological innovation focusing on faster charging technologies,
smart grid integration, and data-driven solutions. Existing fuel retailers posing
additional competition.
Partnerships with government agencies, power companies, and real
estate developers.

Quality and reliable after-sales service for building customer trust


and brand loyalty.
Dishank Agrawal

Market Entry
Mode
Strategic Alliance Formation Formation of Joint Venture (JV) reasons-
Reasons- Potential Equity Stake: Siemens and IOCL may form a
Shared Expertise & Long- separate legal entity for EV charging infrastructure
Term Vision: Siemens' having a defined ownership structure with shared equity.
technological expertise in EV
charging aligns with a Shared Investment & Risk: Both companies may invest
strategic alliance. capital and resources into the venture, sharing the risks
associated with setting up new infrastructure.
Collaborative Decision-
Making: Siemens and IOCL Profit Sharing: Profits from the charging stations would
will likely make critical likely be distributed based on the agreed-upon equity
decisions on technology stake.
roadmap, pricing strategies,
and marketing campaigns.

Potential Challenges:
Complex Negotiations: Structuring the JV can involve complex negotiations.

Alignment of Objectives: Conflicting priorities between Siemens and IOCL need continuous communication and clear
agreements.

Bureaucracy: Forming a JV in India might involve navigating bureaucratic hurdles.


Segmentation, Targeting &
Samarth Gupta

Positioning Segmentation
A. Based on geo location- Tier 1 & 2 Cities with High EV adoption rates and
government initiatives and Tier 3 & 4 Cities and Highways: Long-distance travel and
growing EV demand.

B. Based on customer type- People with personal EVs needing charging facilities at
home, workplaces, and public locations. Also, partnership with public transport
authorities and fleet operators to create dedicated charging infrastructure.

Targeting
A. Early Adopters: Environmentally conscious consumers with premium EVs willing
to pay a slight premium for reliable and fast charging.

B. Fleet Owners: Partnership with public transport and fleet operators to provide
revenue potential and showcase Siemens' charging technology.

Positioning
A. Technology Leader: Leveraging Siemens' brand reputation for engineering
excellence.

B. Reliable and Scalable: Partnering with IOCL's extensive network emphasizes the
reach and reliability of the charging infrastructure.

C. Faster Charging & Convenience: Siemens' commitment to developing faster


charging technologies and convenient charging solutions.
Samarth Gupta

01
Product:
02
Price:
Marketing Mix
6Ps’
EV Charging Stations: Core Competitive Pricing: Initial
product offering various strategies include introductory
charging capacities. discounts or packages.

Potential Value-Added Tiered Pricing: As market


Services: Battery health matures, tiered pricing based
checks, mobile app integration, on factors like charging speed,
loyalty programs. duration, or time of day. Process

Standardized Operations: Establish standard procedures for installation,


maintenance, and customer service.

05 Data Analytics: Optimize station placement and inform future service


03 04 Promotion:
offerings.

Seamless User Experience: Develop a user-friendly mobile app or online


Place: Joint Marketing Campaigns: platform.
Leverage respective brand
IOCL Fuel Stations: Prime strengths.
locations for charging stations.
Digital Marketing: Utilize social
Strategic Partnerships: media, online advertising, and People:
Collaborations with malls, office mobile apps.
complexes, and highway rest Skilled Workforce: Train a skilled workforce for installation, maintenance, and
stops. Government Initiatives: technical support.
Partner with government 06
agencies for EV adoption Customer Service Team: Address user queries and provide technical
benefits. assistance.

Partnerships with IOCL Staff: Enhance customer experience and leverage


IOCL's customer base.
Additional Considerations
Samarth Gupta

Standardized Operations: Tiered Pricing:


Siemens needs to establish standardized operating
procedures for installation, maintenance, and 01 Exploring tiered pricing structures based on factors
like charging speed, duration, or time of day.
customer service

Data Analytics: Adapting to Local Needs:


Collecting and analyzing data from charging
stations can provide insights into user behavior and 02 Siemens might need to adapt its technology and
business model to suit Indian conditions.
optimize operations.

Cost-Effectiveness: India's Power Grid Infrastructure Challenges:


Adapting pricing strategy to cater to a more cost-
sensitive segment. 03 Handling EV adoption's increased electricity demand,
ensuring consistent, reliable power supply and
impacts on user experience.
REFERENCES
Sites
THANK YOU

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