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How feasible is the Indian EV Market?

Green energy revolution & Govt. seeks to reduce its dependency on oil imports.

Lucrative Govt. policies that give the manufacturers general subsidiaries on land & machinery – FAME II (2019–22) scheme.

Cherry on cake – PLI scheme for battery manufacturing industries.

Tax incentives and less interest rate on loans for customers. Tax Boost - GST slashed from 18% to 5%.

IC vs. Neon	Internal Combustion Vehicles	Neon EV
Fuel	1 ltr	20 units of Electiricty
Range	50 km / ltr	140 km per charge (7 km / unit)
Avergae Rate	₹ 105 / ltr	₹ 5.50 / unit
Efficiency	2.1 Rs / km	✔ 70 paise / km

3 times less than conventional IC engines.
66.67% profit per km

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STP Framework

Segementation

Targeting

Positioning

Evaluate potential & commercial attractiveness of each segments - direct to a defined audience.
Select one or more segments - Middle class families, college students, novice riders.

Identify basis for segmentation - Understanding EV market, customer needs, buying behvaiour.
Determine important characteristics of each market segment.

Differentiate Neon EV from competitors.
Develop detailed product positioning for selected segments and a marketing mix for each selected segment.

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Segementation

Demographic

Psychographic

Geographic

Behavioural

The who

Age, Gender, Profession/occupation, Type of residence, Ethnicity.

The why

Personality traits, Beliefs and values, Lifestyles.

The where

City, Touristic areas, Towns (<100km), Delivery,

Urban, Rural, Metro cities, Climate.

The how

Spending & purchasing habits, loyalty to brand.

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Targeting

Potential Customers to target

White-collar workforce (Demographic-Profession)
Students on college campuses are another big market. (Demographic)
EV Scooter Rentals Best Suited For Tourists. (Geographic–Touristic places)
Sub-urban areas where traditional two-wheeler market is about to flourish. (Geographic)
Commuters who make short trips (<100km/day). (Behavioural)

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Positioning

LUXURY

ECONOMY

FAMILY

SPORTY

Ather Energy

Hero Optima

Ola Electric

Gap in the Market?

Bajaj

Chetak

TVS iQube

Hero Photon

Ampere Zeal

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Marketing and Campaigns

Digial Marketing – Curiosity Generation

Promo & Test drive campaigns

Launch on

Feb 31, 2022

Auto Expo’s, Press Conference & PR Activities

Print AD on

leading newspapers

Pre Booking on Ecommerce websites

Referral Campaign

Corporate & college roadshows

Eco Bikers

club launch

Influencer

Marketing

Customer voice campaign

Neon’s next EV

launch campaign

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It takes money to make money!

Campaign type

Brand awareness, Public Relations, Digital and launch campaigns

Target Audience

Who are we targeting?

Conversions

The tangible objective of that campaign

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Recruitment Strategy

Identify needs

Job Advertising

Screening CVs

Interview

1:1 / Online

On-boarding Employees

Creating a list of needs before a job posting.
Identify job roles & requirements.

Appeal to large range of diverse candidates.
Programmatic Job adverts using software.

Using HR analytics.
Using keyword recruitment tools.

Interview within a week.
Avoid candidates losing interest & follow-up with selected & unselected.

Digital on-boarding
Assigning a mentor
Setting up 1:1 with the leads and managers

Other Strategies – Building talent pool, Employee referrals, Diversity Hiring, Internal Mobility

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Estimated Budget for 2022-24

Year	2022 – Q1	2022 – Q2	2022 – Q3	2022 – Q4	2023	2024
Revenue
Cost per vehicle	₹ 89,999	₹ 89,999	₹ 89,999	₹ 89,999	₹ 94,999	₹ 99,999
Estimated vehicles sales (units)	10,000	12,000	15,000	15,500	75,000	1,00,000
Total Revenue	900 Million	1080 Million	1350 Million	1400 Million	7125 Million	10,000 Million
Expenditures
Land & Machinery	400 Million	50 Million	50 Million	50 Million	400 Million	300 Million
Manufacturing Cost (Battery, spares, etc.)	150 Million	250 Million	300 Million	300 Million	2400 Million	3200 Million
Marketing and Campaigns	300 Million	650 Million	700 Million	700 Million	2300 Million	2800 Million
Man power & Resources	300 Million	200 Million	150 Million	150 Million	1200 Million	900 Million
Total Expenditure	1150 Million	1150 Million	1200 Million	1200 Million	6300 Million	7,200 Million
Net P&L	-250M	-70M	150M	200M	825M	2800M

35% growth 2022-23
40% growth 2023-24

200% profit growth YOY

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