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Indian Electric Vehicle Market Entry Strategy – Recommendations for Different Types of Investors


Last Updated: February 2020 by Narasimhan Santhanam

Synopsis:  Taking the current status and expected future trends for the Indian-mobility sector, this post provides guidance to different types of investors – from pure-play financial investors to startups to large corporates – on the optimal Indian market entry strategy and an immediate action plan. 



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.


 

Introduction

Given the current status and short and medium term predictions, how attractive is the Indian electric vehicle sector for investors and entrepreneurs?

Such a question is not easy to answer for any nascent market, and it is the same in the case of electric vehicles too. Besides, the answer to such a question could vary depending on who it is for – is it for a large auto OEM, is it for a company unrelated to the auto industry, is it for a venture capital company, and so on.

Experts from EAI’s EV team have been interacting with a large number of businesses and prospective investors in the Indian electric vehicles sector. The insights from these analyses, together with analyses of the market trends, drivers and constraints that the electric vehicle industry present, have enabled us to provide the following recommendations to the different set of business entities.

Type of Investor Example Strategy for Now
Large & medium corporate in the automotive field depending on IC engines for their business Lucas TVS, supplying fuel pumps They have to start planning right away as their core business is in danger
Large & medium corporates in the automotive field but whose business is not directly dependent on IC engines MRF, supplying tyres They have to start studying the overall ecosystem of electric vehicles to understand what extra value they can add in addition to the non-engine components they are already supplying
Small businesses in the automotive field whose business directly depends on IC engines Small companies supplying engine components They have to start planning and also start looking at joint ventures/partnerships right away to protect their future
Small businesses in the automotive field whose business does not directly depends on IC engines Small companies supplying brake linings They need to be updated about the latest developments in the electric vehicles sector so that they can start planning for partnerships / investments to move up or laterally in the supply chain for the future
Large & medium corporates from outside the automotive field There are thousands They need to first understand the overall electric vehicle ecosystem much better, and analyze where, if at all anywhere, they can add significant value. Based on this decision, they can undertake further efforts.
Small businesses from outside the automotive field There are tens of thousands They need to first understand the overall electric vehicle ecosystem much better and analyze where, if at all anywhere, they can add significant value. Based on this decision, they can undertake further efforts.
First-time entrepreneurs There are hundreds of thousands They can focus specifically on some of the exciting areas such as battery management systems, electric charging infrastructure and other emerging power electronics within electric vehicles to see if any of these are aligned to their skills and aspirations. Based on the result from this analysis, they can take further steps.
Pure-play financial investors Venture capital companies, angel investors, private equity funds As of 2018, it is recommended that pureplay financial investors get a comprehensive understanding of the entire electric vehicle ecosystem from a strategic perspective, and also identify /shortlist companies that are adding differentiated value. Such an understanding and shortlisting will help them take more informed and effective investment decisions as the industry enters the next stage in a year or two.

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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


 

 See also the blog posts:

Comprehensive Inputs on Indian EV Ecosystem

Check out the following sections for comprehensive inputs on Indian EV ecosystem (click on each section for more details)


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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