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Vertical integration opportunities in e-mobility sector


by Narasimhan Santhanam



This posevnext-logo-v-smallt is a part of EV Next’s EV Perspectives.

EV Nexta division of EAI, is a leading market intelligence & strategic consulting firm for the Indian e-mobility sector.


This post is part of a series titled “Strategizing for E-mobility Opportunities in India” from EV Next Perspectives. See all posts for this series from here. See previous post EV opportunities for different industry sectors and businesses

 

Introduction

The Indian EV and e-mobility sectors are growing at a rapid pace and drawing significant investor and corporate interest.

In addition to standalone business opportunities, such investors and corporates (especially the medium and large ones among them) could also consider opportunities that have some degree of vertical integration.

This post reviews and analyses the vertical integration opportunities emerging in the Indian e-mobility sector.

Vertical integration opportunities

Many companies, especially medium and large ones, could eye vertically integrated investment strategies for the e-mobility sector. Preliminary evaluation for such vertical integration possibilities can be done using the analyses of EV value chain components and the strategy action framework, but with an extra layer of analysis added to evaluate the effect of integration.

There are many feasible combinations for such vertical integration. The following table lists some, for illustrative purposes.

Feasible Vertical Integrations across Components Degree of vertical integration Relevance for  Indian companies in short and medium terms
Raw materials + Sub-components + Battery Cells + Battery packs High Low-Moderate
Sub-components + Battery cells + Battery packs High High
Sub-components + Battery cells Moderate High
Battery cells + Battery packs Moderate High
Battery packs + Motor components + Motors Moderate High
Motor components + Motors + Automobiles Moderate High
Battery packs + Motors + Motor components + Automobiles Moderate High
Battery cell making machinery + Battery pack making machinery Low Moderate
Components for EV charging infrastructure + EV charging infrastructure assembly + EV charging infrastructure installation Moderate High
Components for EV charging infrastructure + EV charging infrastructure assembly Low-Moderate High
Automobiles + EV charging infrastructure O&M Low-Moderate High
Components for EV battery swapping infrastructure + EV battery swapping infrastructure assembly Low-Moderate High
Automobiles + EV battery swapping infrastructure O&M Low-Moderate High
EV charging infrastructure O&M + EV swapping infrastructure O&M Low High
EV sales & marketing + EV charging & swapping infrastructure O&M Low-Moderate High

Vertical integration possibilities

What we have listed above are some of the more feasible integrated opportunities. There could, of course, be a select few others.

What combination is optimal for you depend on a whole host of factors – part of which depends on the market itself, and the other part on what your company brings to the table. There’s the time dimension as well – you may want to start with one opportunity with an eye to integrating upstream or downstream down the line.

This post is part of a series titled “Strategizing for E-mobility Opportunities in India” from EV Next Perspectives. See all posts for this series from here. See next post E-mobility – Steps to Identify the Right Opportunity

The following are the posts in this series:


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Know more on how EV Next can assist your business in your strategy for the e-mobility and electric vehicles sectors, Here

Wish to know everything about India’s EV market from one place? Check out the India EV Expert Guide, an 800 page comprehensive guide to the Indian EV marketHere



Categories: E-mobility, Electric Vehicles, Indian E-mobility Strategy

Author - Narasimhan Santhanam


Thank you for reading this post – hope it was helpful. You can connect with me at narsi@eai.in. My detailed profile here and my LinkedIn profile here

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