E_BIKE MARKET.

CHAPTER: 1 LITERATURE REVIEW

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CHAPTER: 2 INTRODUCTION
2.1 INDIAN TWO-WHEELER INDUSTRY Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well-directed efforts have been made to provide a new look to the automobile policy for realizing the sector’s full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.

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2.2 EVOLUTION OF TWO-WHEELER INDUSTRY IN INDIA Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-¬04. This high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over the industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilization of capacity; and (c) usage of outdated technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalized and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the 3

basis of product attributes. Finally, the two-¬wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players. Though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted in higher level of competition. 2.3 A GROWTH PERSPECTIVE The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total twowheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment’s gaining importance during this period. The two-wheeler industry (henceforth TWI) in India has been in existence since 1955. It consists of three segments viz., scooters, motorcycles, and mopeds. The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, and pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Two wheelers usually fall into three segments—scooters,

motorcycles and mopeds. Scooters dominated the two-wheeler market until recently but have lost share to motorcycles which are growing the fastest and gradually becoming the most preferred two wheeler. The increasing preference for motorcycles is being attributed to the opening of rural markets where stronger 4

suspensions, fuel economy and a larger wheel-base are preferred given Indian road conditions. The increase in sales volume of this industry is proof of its high growth. In 1971, sales were around 0.1 million units per annum. But by 1998, this figure had risen to 3 million units per annum. Similarly capacities of production have also increased from about 0.2 million units of annual capacity in the seventies to more than 4 million units in the 1994.

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Domestic Market Share for 2007-08 CVs Total Passenger Vehicles Total Two Wheelers Three Wheelers 5 14 77 4

Table 1 suggests two important dimensions for the two-¬wheeler industry. The region-wise numbers of motorcycle and scooter suggest the future market for these segments. At the all India level, the demand for motorcycles will be almost 10 times of that of the scooters. The same in the western region will be almost 20 times. It is also evident from the table that motorcycle will find its major market in the western region of the country, which will account for more than 40 per cent of its total demand. The south and the northcentral region will follow this. The demand for scooters will be the maximum in the northern region, which will account for more than 50 per cent of the demand for scooters in 2011-12. 6

Table 1: Demand Forecast for Motorcycles and Scooters for 2011-12 2-Wheeler Segment Sout h Motorcycle West Regions NorthCentral 2624 (12.5) 602 (2.8) East & NorthEast 883 (11.1) 99 (2.0) All India 10669 (14.0) 1124 (2.08)

2835 4327 (12.9 (16.8 ) Scooter 203 ) 219

(2.6) (3.5)

Note: Compound Annual Rate of Growth during 2002-03 and 201112 is presented in parenthesis Source: Indian Automobile Industry: Optimism in the Air, Industry Insight, The present economic situation of the country makes the scenario brighter for short-term demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004. Both industry and the service sectors have shown high growth during this period at the rates of 8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP growth to some extent. Taking into account all these factors along with other leading indicators including government spending, foreign investment, inflation and export growth, NCAER has projected an average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very recently, IMF has portrayed a sustained global recovery in World Economic Outlook. A significant shift has also been observed in Indian households from the lower income group to the middle income group in recent years. The

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finance companies are also more aggressive in their marketing compared to previous years. Combining all these factors, one may visualize a higher growth rate in two-wheeler demand than presented in Table 1, particularly for the motorcycle segment.

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There is a large untapped market in semi-urban and rural areas of the country. Any strategic planning for the two¬-wheeler industry needs to identify these markets with the help of available statistical techniques. Potential markets can be identified as well as prioritized using these techniques with the help of secondary data on socioeconomic parameters. For the two-wheeler industry, it is also important to identify the target groups for various categories of motorcycles and scooters. With the formal introduction of secondhand car market by the reputed car manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry needs to upgrade its market information system to capture the new market and to maintain its already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban areas also requires more focused attention. It is also imperative to initiate measures to make the presence of Indian twowheeler industry felt in the global market. Adequate incentives for promoting exports and setting up of institutional mechanism such as Automobile Export Promotion Council would be of great help for further surge in demand for the Indian two-wheeler industry.

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CHAPTER: 3 ABOUT E-BIKES
3.1 What is ELECTRIC VEHICLE? An Electric Bike or Scooter is a battery operated vehicle that is very economical with low maintenance cost and zero pollution. Electric two wheelers use the electrical technology of rechargeable battery that converts the electrical energy into mechanical energy. The battery of an EV can be charged easily using a power connection. A motorized bicycle, sometimes referred to as a light electric vehicle or LEV, is a bicycle with an attached motor used to assist with pedaling. Generally considered to be a vehicle, sometimes as a motor vehicle or a class of hybrid vehicle, motorized bicycles are usually powered by electric motors or small internal combustion engines. Some can be propelled by the motor alone if the rider chooses not to pedal; while in others the motor will only run if the rider pedals.

A bike equipped with an after market Electric hub motor conversion kit, With the battery pack placed on the Rear carrier rack. On 31 December 1895 Ogden Bolton Jr. was granted U.S. Patent 552,271 for a battery-powered bicycle with “6-pole brush-andcommutator direct current (DC) hub motor mounted in the rear wheel.” There were no gears and the motor could draw up to 100 amperes (A) from a 10-V battery.[1] Two years later, in 1897, Hosea W. Libbey of Boston invented an electric bicycle (U.S. Patent 10

596,272 ) that was propelled by a “double electric motor.” The motor was designed within the hub of the crankshaft axle. This model was later re-invented and imitated in the late 1990s By 1898 a rear wheel drive electric bicycle, which used a driving belt along the outside edge of the wheel was patented by Mathew J. Steffens. Also, the 1899 U.S. Patent 627,066 by John Schnepf depicted a rear wheel friction “roller-wheel” style drive electric bicycle. Schnepf's invention was later re-examined and expanded in 1969 by G.A. Wood Jr. with his U.S. Patent 3,431,994 . Wood’s device used 4 fractional horsepower motors; each rated less than ½ horsepower and connected through a series of gears.[4] By Giant Lafree electric bicycles. Takada Yutky of Japan filed a patent in 1997 for such a device. In 1992 Vector Services Limited offered and sold an electric bicycle dubbed Zike.[5] The bicycle included Nickel-cadmium batteries that were built into a frame member and included an 850 g permanentmagnet motor. Development diverged into two distinct streams: motorcycles, which are powered solely by their engines, and motorized bicycles as defined above. The closeness of the two forms in early years is demonstrated by Félix Millet's machines of 1892/93 and on. Within a few years motorized bicycles and motorcycles were recognizably divergent, with for example early motorcycles being longer, heavier and with a markedly different riding position from that of a contemporary pedal cycle. Later, development forked again with the advent of mopeds, small motorcycles fitted with pedals that can be used as a starting aid but which cannot, practically, be ridden under pedal power alone. This development appears to have been largely in order to exploit ambiguities between the regulatory framework for bicycles, powered bicycles 11

and motorcycles - in jurisdictions where pedals were not required to meet the legal framework they were often simply omitted on otherwise identical models.

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3.2 NAMING AND LEGAL STATUS (ELECTRIC BICYCLE LAW) Legal terms for motorized bicycles include "Power Assisted Bicycle (PAB)" (Canada), MOPED, "Electrically assisted pedal cycle (EAPC)" (United Kingdom), or (commonly) "electric bicycle", frequently abbreviated as "E - bike". In comparison some custom designs of electric bike have a range of up to 40 miles (64 km) and a maximum speed of +55 mph (89 km/h). In the United States low-speed electric bicycles (top speed under 20 mph and under 50 cc's or in the case of electric models 750 watts) are not considered motor vehicles by the federal government and are subject to the same consumer safety laws as unassisted bicycles Internal combustion The 1900 Singer Motor Wheel was a wheel incorporating a small IC engine that could be substituted for the front wheel of a bicycle, while the 1914 Smith Motor Wheel was attached to the rear of a bicycle by means of an outrigger arm, a design later taken up by Briggs & Stratton. The last large-scale IC-powered motorized bicycle, used friction drive to the front wheel. The last volume manufactured in-wheel IC engine was used on the Honda P50 moped which ceased production around 1968. In the late-2000s, the RevoPower Wheel returned to a concept similar to the 1900 Singer Motor Wheel, again providing an engine that would go in place of the ordinary front wheel of the bicycle to provide extra power.

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3.3 COMPONENTS OF AN ELECTRIC BIKE OR SCOOTER

ELECTRIC HUB MOTOR: to drive the rear wheel directly and there are two types of Electric Hub Motor i.e. DC Brush Motor and DC Brush less motor having two basic parts namely Permanent Magnet Stator and Wound Rotor. ELECTRONIC MOTOR CONTROLLER: is the central controlling unit of any Electric two wheelers provides electric power to the motor based on inputs from the accelerator. ELECTRONIC ACCELERATOR: sends electronic signals to the Electronic Motor Controller to maneuver the bike or scooter. BATTERY PACK is like the fuel tank of E Bike or Scooter. There are different kinds of batteries like Lead Acid, Nickel Metal Hydrate (NiMH), Lithium, etc. that are used for supplying energy. High starter: unique formula, low internal resistance, can supply stronger power, high start-up and starting a batter lowtemperature .Good quality: new alloy grids, Corrosion-resistant, low self-discharge and long life Good deep discharge ability in low temperature Plates. As a professional manufacturer in producing lead acid batteries and plates (For automotive, UPS, motorcycles, electric bicycles, vehicles), we give the first priority to the product's quality and the services you need .All the products are complied with the Chinese standards (GB), Japanese standards (JIS), German standards (DIN) and IEC standards to meet customer demands for different kinds of plates and lead-acid batteries and power electromechanical products. 14

BATTERY CHARGER is used to charge the battery pack of E Bikes or Scooters, just like a mobile phone or a laptop. Some battery chargers are in-built and some are separate that carried always on the move. The charger converts an AC supply to DC to store power in the battery and it can be used with any normal domestic AC plug point. This makes charging of battery pack easy and convenient.

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3.4 FEATURES OF ELECTRIC BIKES AND SCOOTERS

Electric bikes or scooters, light in weight, trendy, efficient and ecofriendly, are becoming potent alternative to the conventional twowheelers and the Electric two-wheeler industry in developing at rapid speed. Have a look at the unavoidable advantages of Electric Bikes and Scooters:
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India is

License and registration is not required for E Bikes and Scooters. Electric two wheelers run on re-chargeable battery and uses electricity as fuel in place of conventional Petrol/Diesel. E Bikes and Scooters can beat the rising prices of

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Petrol/Diesel.
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Simple design, light weight and economical Electric vehicles are very low in running and maintenance cost. With the ease of handling, Electric two wheelers save the commuting time in congested roads especially in urban areas. Electric vehicles are more efficient in terms of generating usable energy from their electric engine's battery in comparison to the regular fuel conversion. In this way E Bikes and Scooters are innovative and efficient mode of personal transport.

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Electric bikes or scooters use electricity therefore no emission of harmful gases like Carbon dioxide (CO2) or Nitrogen dioxide (NO2).

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3.5 ENVIRONMENTAL EFFECTS Old inefficient Two stroke engines, common in those powered by internal combustion engines often emitted more pollution than automobiles due to partial combustion of the upper cylinder lubricant necessarily included in the fuel (this is not the case with newer 2 stroke motors such as the Tanaka "Pure Fire"). One Swedish study found that running the older inefficient 2-stroke lawnmower for half an hour pollutes as much as a 150 km trip in an average car. Most electric bicycles can be classified as zero-emissions vehicles, as they emit no combustion byproducts, the environmental effects of electricity generation and power distribution and of manufacturing and disposing of (limited life) high storage density batteries must be taken into account. Even with these issues considered, generally electric seen as bicycles will have significantly in an lower urban environmental impact than conventional automobiles, and are environmentally desirable environment, as are the newer internal combustion engines which do not have the substantial environmental problem of battery disposal.

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3.6 FUTURE OF E-BIKES E-bikes admittedly have little appeal for competitive cyclists or mountain bike enthusiasts. However, they are a feasible mode of transportation for commuting to work or traveling short distances. During these tests, many people were attracted to the e-bikes, which rekindled their interest to travel by different means than a car. Some of them had given up on conventional bicycles because it was difficult to climb the steep hills on their route. Others were hesitant about riding bicycles because of weather conditions. The evaluation results and the excitement generated by this new vehicle suggest that a segment of the population would leave the car at home and commute to work by e-bike, at least in fine weather. Seniors and people with respiratory conditions, cardiovascular problems or muscular disabilities can rediscover the pleasures of cycling without having to expend a lot of physical effort. It appears that a new market niche will open up for e-bikes without compromising the traditional bicycle market. As with conventional bicycles, the more varied the choice of e-bikes, the greater the number of consumers who will find a product that meets their needs.

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3.7 ELECTRIC BIKES AND SCOOTERS IN INDIA

The face of auto industry that was redefined with the invention of fuel-efficient four-stroke engine technology is all set to see dawn of a new era in two-wheeler industry. It's not petrol or diesel or any other fuel, but its electricity that have initiated a revolution in twowheeler industry in India. Indian two-wheeler industry has embraced the new concept of Electric Bikes and Scooters that are very popular mode of personal transport in the developed countries like America, Japan and China. With the rising cost of fuel at International and national level, increasing levels of pollution and congestion in transport system specially in Urban areas, higher running and maintenance cost of vehicle, the electrically charged bikes or scooters have very bright future in area of personal transportation. Manu consumers are doing just that, and companies like

Electrotherm India, Ace Motors and UK-based Ultra Motors have launched a range of electric two-wheelers that are fast catching the fancy of urban women and teens. In fact, a recent 10-city study conducted by A C Nielsen has pegged the nascent electric twowheeler market in India at nearly 5 lakh units a sizeable market for a frontline technology. What make the technology tick are the relative operational economy and the fact that most of these models do not fall under ARAI requirements. As Kumar Raval, managing director of Pune-based Ace Motors says, “Typically, these electric bikes fall below the 25 cc category, are gearless, have a top speed of 25 kmph and travel approximately 60 to 70 km on a single charge. Hence, they do not require registration and payment of road tax. One can even drive these bikes legally 19

without a license, in turn making them an attractive option for school and college goers.”

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Ace Motor currently produces 2000 E-Bikes every month, with plans to double the output in the next two years. And Ahmedabad-based Electrotherm India, which markets its electric bikes under the name Yo-Bikes, has sold over 2,500 units since its launch in February. While Electrotherm’s range of seven Yo-Bikes is priced between Rs 14,000 and Rs 23,000 approximately, Ace Motor’s E-Bikes command Rs 26,500 each. The economy kicks in where running costs are concerned. While a regular two-wheeler has a fuel cost of Rs 1 per kilometer, electric bikes can run for as little as 10 to 15 paisa per kilometer, inclusive of battery maintenance.

Ultra Motors — which is rolling out its product line in December last year — will also be launching electric bikes that have a higher power output of above 350 watts and will go through all the mandated ARAI certification.

“We are targeting the 3 million-unit, high-end bicycle market through our lower-end models and plan to capture the 4 million unit scooterette market through the higher-powered models,” said Deba Ghoshal, marketing director for Ultra Motors India. Even as these companies have got the first mover’s advantage for the moment, automobile bigwigs like Bajaj and Kinetic are fast in the race to capture this emerging market. Kinetic has been conducting research on electrically-operated two-wheelers for the past few months and plans to roll out commercially by next year.

“We will be looking at bikes with a power output equivalent to approximately 100 cc, as there are no such existing products in the 21

market. But we do believe that the market would take another year to show signs of maturing,” says Ajinkya Firodia, General Manager marketing at Kinetic Motors, which will be manufacturing these bikes indigenously.

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And the market for electric vehicles isn’t restricted to bikes alone. Bajaj Auto is currently experimenting with three-wheelers, while Electrotherm is also looking at the feasibility of launching batterypowered hybrid buses. But even as the market for this technology is large, obstacles in the form of inadequate servicing and batterycharging stations may slow the growth. “However, once the consumer starts demanding services like power-charge kiosks, market dynamics are bound to kick in. The supply will come automatically,” feels Ghoshal.

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E-BIKES in India Toyota unveiled its electric-petrol Prius at the International Engineering Trade Fair in New Delhi. Honda Motor Company unveiled its Insight hybrid car and the FCX fuel-cell vehicle in Delhi. Mahindra said that a hybrid SUV will be launched soon Dalmer-chrysler has been working on biodiesel powered Mercedes. In January mahindra has launched biodiesel powered Arjun tractors and Bolero. Indian automotive industry looking for a hybrid future Especially for a fossil deficient country like India, Hybrid, fuel cell powered and biodiesel powered vehicles seems to be a good alternative. Biodiesel, Electric vehicles (EV), Hybrid vehicles and Fuel cell vehicles will replace the Petro – Diesel vehicles in coming years. I will write on all these things in future. This post is all about electric vehicles in India Overview: Electric vehicles are virtually maintenance free. It has no gears, no engine, no belt or chain drive, zero emission, no pollution, electronic start and accelerator, besides it is exempted from the Central Vehicles registration act by the Automotive Research Association of India (ARAI) and does not require any registration or license. These bikes are usually chargeable at 220V which your refrigerator requires. For charging bikes require special adapter. Batteries, Motors and other electrical kits are imported from china and other countries whereas mechanical design and assembly of these bikes are done here. Electric bikes target School students, women and who are under 18 years of age. Yo-bikes: Indus - division of Electrotherm a gujrat based company is the recent player in electric vehicle market. It offers two scooterette and four bikes models with the motor power range 200-250W. YO-smart scooter model from Indus come with a very compact dimension. The vehicle weighs less and has a payload of 75kg. YO-smart vehicle clocks a top speed of 25km/hr and the vehicle offers a range/charge mileage of 75km. Charge duration required is 6 – 8hours. Electrotherm’s YOBikes are ranged between Rs 13,999 and Rs 23,249.

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EKO vehicle:

EKO vehicle a Bangalore based company offers EKO cosmic –I scooter and EGO bike. This company has been in this business for a long time and has dealers in various locations in India than its counterparts. Battery weighs at 28kgs and has a life of 12000 – 15000kms. The company offers a rapid charger which will charge the bike at 10 – 15 minutes (good for intuitional consumers). Cosmic offers a variable mileage depends on your payload. The maximum speed is 40 km/hr and Cosmic noise is less than 60decibel. Cosmic is offered in five colours and is exported many countries. ACE motors:

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Pune based Ace motors manufacturers e-bike (electric bike) and the majority of the components of this bike are imported from China based company Changtong E Bike Company Ltd. The e-bikes from Ace Motors weigh almost 60kg. The bike offers a load-carrying capacity of 100-140 kg. To cover a distance of 220 km, you need to charge the bike for 6 - 8 hours at 220 volts. The maximum speed of the bike is 25 km/hr and is priced at Rs 26,500. REVA:

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Reva car is the Indian face of Toyota Prius and Honda FCX. It launched the India’s first electric car in 2001. Reva introduced Energy Management system (EMS) which diagnoses and rectifies the problem of over discharging and helps in better maintenance. To counter the general perception amongst people that electric vehicles are not safe, the Reva has incorporated safety features like

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the steel space frame, side impact beams, dent-proof ABS body panels, a low voltage system, and a dual-braking system. The Reva is offered in three variants — Standard (non-a/c), Airconditioned and Classe. Priced at Rs 3.1 lakh (on-road) for the base variant and Rs 4.05 lakh for the Classe variant, the Reva is not exactly very affordable. The non air-conditioned base variant has a driving range of 80 km on a full charge, while the other two air-conditioned variants will give you about 60 km. Cute and super compact Reva which comfortably seat two adults and two kids offered in six colours. Reva has received investments worth USD 20 million recently from Global Environment Fund Others:

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There are many regional players in this industry. Now, this industry has attracted major players too. Mahindra eco mobiles a subsidiary of M&M has launched “Bijlee” a 10 seater available only in selected markets. Scooters India a Lucknow based company has been offering 8 seater (including driver).Scooters India claims the charge range as 80km at a speed of 30-35km/hr. Hero cycles (Hero Honda group) has collaborated with UK based Ultra motor has launched a series of bikes in January 2007. The bikes have a maximum speed of 25 kilometers per hour and run for about 45-50 kilometers on a single charge. The electric bikes come in the range of Rs 15,000 to Rs 20,000 and the electric scooters in the range of Rs 24,000 to Rs 28,000.

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Atlas has launched an e-bike priced at Rs 17,000. Ludhiana based Avon Cycles and Chennai based TI cycle has also launched e-bike.

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VERDICT

“It is estimated that India’s fossil fuel dependency on other countries currently from 70% to 82% in 2012. If we can have three lakh Electric Vehicles on the roads by 2020, including threewheelers, cars, and scooters, this could result in a reduction of over 16 lakh metric tons of CO, NOx and HC by 2020, savings of over Rs 3,700 crore in foreign exchange and significant health costs savings”—- auto monitor If you are ready to buy an EV just read what the Indian government offers! Government has reduced the custom duty on three of the imported components in battery operated vehicles (BOV) to 10%.Excise duty reduced on electric vehicles from 16% to 8% in 2004 budget. But the industry feels that the efforts are not sufficient. Toyota Prius the model which accounts for nearly 80 per cent of the hybrid vehicle sold globally is about Rs 10 lakh in the US. In India at current levels of duty, it could cost anywhere between Rs 20-25 lakh because of the high import duty. At present total import duty is 111% (60% on CBU imports plus countervailing duties and other levies). According to A Toyoshima, managing director, Toyota Kirloskar, the Indian government should relax the duty structure for such hybrid vehicles to promote eco-friendly technology in the country. Honda said that the new small car it plans to offer in 2009 would be a hybrid if the government makes required tax sops. If government wishes a greener future it has to take necessary actions to encourage the industry, if you want to save the earth buy an evehicle. 28

3.8 MAJOR PLAYER’S OF E-BIKE IN INDIA

YO-SMART

YO-Smart means business when you wish to travel to your school or office! Y0-Smart is run on electrically charged batteries, is soft on your wallet, and has built-in smart futuristic electronics technology. Indus Elect-trans, a division of Electrotherm (ET), is manufacturer of YO-Smart and other electric and hybrid electric vehicles. YO-Smart manufacturer, Indus Elect-trans plans to make environment friendly and pollution free electric three wheelers, four wheelers and hybrid electric low floor buses in the future. YO-Smart requires no Registration or Pollution Under Control Certificate (PUC). YO-Smart means comfort, economy, and a smart new way to rule the roads!

Looks
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Smart styling Smart colors - Yellow/Red/Silver Metallic/Sky Blue/White Aerodynamic shape Alloy wheels Speed & battery level indicator Bright headlights for better visibility

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Control
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Electronic acceleration and starting Intelligent braking system with electronic sensors Electronic accelerator Electronic controller

Comfort
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Low height Easy grip on accelerator Comfortable seat for twin riders Bright light for night riding Easy to handle due to low weight

Mileage and Economy
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700 km per charge Charge duration 6-8 hours Offers higher mileage with its 250 watt motor Runs at 25 km/h

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INDUS-YO-SPEED

YO-Speed

manufactured

by

Indus

Elect-trans,

a

division

of

Electrotherm (ET), is India's first electric vehicle approved by ARAI in 750 W categories. Yo-Speed races at high speeds and yet can comfortably carry your partner. Yo-Speed manufacturer Indus Electtrans plans to make environment friendly and pollution free electric three wheelers, four wheelers and hybrid electric low floor buses in the future. If speed and economy are your first priorities, then YOSpeed fits your bill!

Looks
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Aerodynamic shape Wider alloy wheels Sharp head lights Smart side indicators Attractive speedometer Brake light Battery level indicator

Control
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Intelligent braking system Speed Indicator Electronic accelerator 31

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Electronic controller

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Comfort
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Twin seating capacity Powerful motor Easy accelerator grip Bright light for night riding

Mileage and Economy
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First vehicle in India in 750W range approved by ARAI Maximum speed (max. 45 kms) Powerful motor (750Watts) Longer riding range (80kms @70kgs)

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HERO ULTRA ADVANTA
Hero Ultra- the joint venture between Hero Group's company Hero Exports Private Ltd (HE) and UK-based Ultra Motor Company (UMC) - has come up with Advanta with number of advantages as an Electric Two Wheeler. Hero Ultra Advanta wears a new kind of stance with fresh styling work in handle bar, indicator lights and color finish that seems attractive in first look. Powered with a 250 watts Ultra motor Hero Ultra Advanta has an alternative pulling option of Pedal which, due to the light weight of Electric Bike, works effortlessly. Teamed with a 36 V/15 AH sealed lead acid battery, Advanta is capable of delivering 45 Km of range after a single charge. Advanta offers a convenient storage space near the switch at front and a grille attached with the seat at rear. Available with an attractive price tag between Rs. 15,000-20,000 and host of user and environment friendly features, Hero Ultra Advanta is like a treat for young riders and a god thing to show off. Company Name Hero Ultra Segment Electric Scooter Motor Power & Range 250 Watts 45 Km Per Charge

Striking Features of Hero Ultra Advanta
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Wearing a refreshing looks Advanta gives a stylish stance Power of 250 watts motor is assisted with Pedal pulling option Light weight body structure Delivers 45 Km after a single charge Large Alloy wheels with stylish rims 34

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Convenient storage space Ease of handling with better road grip

Available Color of Hero Ultra Advanta
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Cream

Price of Hero Ultra Advanta Boasting the hallmark features of cost, mileage and fuel advantage Hero Ultra Advanta is available for sale with a price tag between Rs. 15,000-20,000

Technical Specifications of Hero Ultra Advanta

Speed Range Vehicle weight Recommended Load Capacity Battery type Operating voltage Battery capacity Charger Type Motor Power Pedal transmission Wheel size Wheel Type

25 kmph 45 km/charge 50kg 75 kgs Sealed Lead Acid 36 V 15 AH 36 V, 2 A <250 Watts Yes 16" x 2.125" Alloy

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ATLAS E-BIKE

Manufactured by Atlas

Price: Rs. 17,200

Specifications Range: Top Speed: Motor: Wattage: Batteries: Voltage: Charge Time: Wheels: up to 40 Km / charge 25 km/h Hub Motor 240W BLDC Geared 240W Sealed Maintenance Free Lead Acid Battery 36V 4-6 hours 22"x1.75"

Description No registration or license is required to drive this vehicle.

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3.9 TEN REASONS FOR SELECTING E-BIKE 1. Hill Climbing That may sound obvious, but it's the primary advantage. A good electric bike effectively flattens hills, increasing your average speed and eliminating the 'groan' factor when a gradient comes into view. Provided you supply a reasonable amount of effort, you can expect to climb hills of 1 in 10 (10%) on an electric bike with ease, and clear a maximum gradient of 1 in 7 (14%), or much more. In hilly country, the effect is nothing short of miraculous. 2. Safety It sounds unlikely, doesn't it? But the mathematics is compelling. Think of a steep and busy road, with cars climbing at 30mph. If you previously slogged up the hill at 6mph, but can tackle the same gradient at 12mph with an electric bike, you will see 33% fewer cars and they will pass you at 18mph rather than 24mph. Or at least, we think that's correct. Whatever the figures, there's no doubt that an electric bike helps to keep you out of danger. The same general principle applies to road junctions - the faster your acceleration, the sooner you can get out of trouble. And with no need to rush the hills, you won't be tempted to ride downhill at breakneck speed... another useful safety feature. 3. Running Costs Purchase cost is a little more than a conventional bike, mechanical wear and tear is about the same, and electricity is so cheap as to be largely irrelevant, but there is an extra expense in terms of battery depreciation. Consequently, an electric bike costs more to run typically 5 - 8 pence per mile against 4.2 pence per mile for a nonassisted bike (a). 37

However, electric bike running costs should really be compared with those of a moped, or a car, when the electric bike replaces car mileage. With cars costing 50 - 80 pence per mile, an electric bike can save a great deal of money. 4. Personal Fitness Surely a conventional bike will keep you fitter? That, of course, depends how much - if at all - you use it. Research (b) has found that 46% of conventional bikes are used only once or twice a week, with a further 30% being used once a fortnight or even less. By contrast, a recent survey of electric bicycle owners reveals that a third rides their bike at least once a day and 81% use the bike at least once a week (c). The figures confirm our experience that an electric bike typically gets used at least twice as often as a conventional machine. Because riding an electric bike is a great deal more enjoyable in hilly country, into strong winds, or when carrying heavy loads, users tend to make better use of them. The motor provides up to half the effort, but more regular use means more exercise for the rider. 5. No Sweat! Sweat may not be a serious issue when you're out for a leisure ride, but it's more important if you're cycling to work. Although some employers are rather grudgingly providing showers and other facilities for cyclists, the great majority have no intention of doing so. An electric bike eliminates the problem at source. Oddly enough, you won't sweat on an electric bike, even if you put in the same amount of effort as you do on an ordinary bike. This is because you will be going faster, and the 'wind chill' effect is greater, keeping you cool. In hot weather, it's possible to maintain a normal schedule by transferring a bit more load to the electric motor. In colder

38

weather - or if you feel in need of exercise - just throttle back, or turn the motor off.

39

6. Clean & Green Electric bikes obviously consume energy, where a conventional bikes does not (provided we ignore the environmental cost of growing and processing food - see below). However, the amount of energy used is very small compared to a moped, motorcycle or car. Besides fuel, the only consumables are the batteries, and these can normally be recycled when life-expired. As for energy use, electric bikes typically consume fuel at an average rate of 100 to 150 watts of electrical energy, against 15,000 or so for a car (admittedly traveling faster, out of town at least). In terms of fuel consumption, an electric bike achieves about 800-2,000mpg (280 - 700 km/liter) (d). No other commercially available vehicle can match figures of this kind. If it's hard to place these numbers in your own lifestyle, think of a 100 watt electric light bulb burning for an evening - that's enough energy to propel an electrically-assisted bike for 20 to 40 miles...

7. Genuinely Sustainable There's a lot of nonsense talked about sustainability in transport, but an electric bicycle can be made genuinely sustainable. Purchase electricity from a 'green' supplier, or generate your own with a roofmounted windmill or solar panel array, and the vehicles' fossil fuel consumption will be zero. Surely a conventional bike does that already? Only if you grow the food you consume whilst riding it. Unfortunately, most modern food production and distribution is so fuel-intensive that the consumption of a typical cyclist is not terribly good. To see this in practice, take a look at our Climate Change pages.

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8. Faster Travel In theory a car can average a high speed, but in practice speed often falls below 10mph in cities. The problem is congestion motorcycles get around this to some extent, but they're still confined to the road network. An electric bike can maintain a higher average speed than a bicycle but take advantage of the same network of cycle facilities, giving access to routes that cars and motorcycles cannot reach. The result is often a faster door-to-door journey time than any other mode. And by taking advantage of the uncontested cycle network, but eliminating hills and headwinds, electric bikes are often the most consistent mode of travel.

9. High Resale Value Electric bikes are new technology, and these are early days, but the evidence points to a much better resale value than a conventional bike. True, a typical electric bike costs more to buy, at £400-£1,000, but it seems you'll get most of that back if you sell the machine on.

10. Motorized, but no Red Tape! You know how it is... MOT due, log book missing, insurance costs rising year on year. Electric bikes are treated just like ordinary bicycles for legislative purposes, so there's absolutely no registration or legislation to worry about. You are of course free to insure the machine if you wish, but there's no compulsion to do anything but enjoy yourself!

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3.10 WHO BENEFITS FROM AN ELECTRIC BIKE? Who benefits from Electrically Assisted Pedal Bikes? Commuters - Who like to cycle, yet arrive fresh at work by using assisted power, and burn off energy cycling on the home run. Leisure Users - Who aim to cover greater distances and explore the countryside with ease. About Town Travel - With cycle lanes and cycle paths, users have more travel route options, and for some journeys, travel could be quicker than by car. Health & Fitness – An electric bike offers a healthy alternative to a car journey, and improves the pace and distance of a cycle. Local Shoppers - Leave the car at home, save effort fighting for a parking space. Tackling Hills – For a steep climb, power assistance can keeps the rider on the bicycle. Knee Joint Sufferers – Where pedaling is not easy an electric bike takes the strain. Keen Environmentalists - Electric bikes keep urban pollution to a minimum. Older People - Who love cycling and value the extra energy that electric cycles give. Economy Users - No License, No insurance, No MOT and No worries over petrol prices. No Driving License - Due to age, ill-health, or a ban, an electric bike will get you back on the road.

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CHAPTER: 4 INDUSTRY ANALYSIS
4.1 PEST ANALYSIS ON E-BIKE INDUSTRY All external environment factors consider in PESTEL analysis the factors are political, legal, economic, socio cultural, and technological. Each factor is more or less affected to Indian leather shoes industry. Every industry has to consider these factors because these factors create opportunity or threat at period of time. 1. • POLITICAL FACTORS Union Budget

The Union Budget has dampened the spirits of electronic bike (E-Bike) as the government has left the issues of excise duty on such bikes and import duty on battery untouched. The E-Bike manufacturers had sought from Union Finance Minister to exempt excise duty on E-Bike and reduce import duty on battery, which is a key input for a bike. The electric two wheelers in particular continue to attract 8 per cent excise duty. Current taxation on E-Bike and its parts makes its ownership prohibitive for the average aspirant in this segment. “The government should have reduced the import duty on battery which constitutes almost 25 to 27 per cent of the cost,” Hero Exports (part of Hero Cycles) Senior Vice President Ashok Abrol said. • Vehicle Cars Current Duties: Basic Duty 60% Addl. Duty 32% Spl. Addl. Duty 4% Total Duty More than 110% 43

Motor cycles/scooter s/ moped

60%

16%

4%

More than 85%

44

2. LEGAL AND ENVIRONMENTAL FACTOR Batteries (Management and Handling) Rules, 2001. S.O. 432(E): Whereas a notification of the Government of India in the Ministry of Environment and Forests was published in the Gazette of India, Extraordinary, Part II-section 3, sub-section (ii) vide No. S.O. 491 (E) dated 24h May, 2000 and corrigendum published in the Gazette of India Extraordinary Part-II section 3, sub-section (ii) vide No. SO 593 (E) dated 23d June, 2000 under powers conferred by sections 6,8 and 25 of the Environment (Protection) Act, 1986 (29 of 1986), inviting objections from persons likely to be affected, within a period of sixty days from the date of publication of the said notification with regard to the Government's intention to notify the Battery (Management and Handling) Rules, 2000. Responsibilities of manufacturer, importer, assembler and re-conditioner 1. ensure that the used batteries are collected back as per the Schedule against new batteries sold excluding those sold to original equipment manufacturer and bulk consumer(s); 2. ensure that used batteries collected back are of similar type and specifications as that of the new batteries sold; 3. file a half-yearly return of their sales and buy-back to the State Board in Form-I latest by 30 June and 30 December of every year; 4. set up collection centers either individually or jointly at various places for collection of used batteries from consumers or dealers; 5. ensure that no damage to the environment occurs during transportation;

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6. create following: • •

public

awareness

through

advertisements,

publications, posters or by other means with regard to the

hazards of lead; responsibility of consumers to return their used batteries only to the dealers or deliver at designated collection centers; and

•

Addresses of dealers and designated collection centers.

7. use the international recycling sign on the Batteries; 8. buy recycled lead only from registered recyclers; and 9. Bring to the notice of the State Board or the Ministry of Environment and Forests any violation by the dealers.

GREEN CERTIFICATES FOR LEAD BATTERY MAKERS Occupational Knowledge International (OK International) – a nongovernment organisation that works for improving public health through innovative strategies to reduce exposure to industrial pollutants -- launched the Better Environmental Sustainability Targets (BEST) certification for lead battery manufacturers. Under the BEST programme, lead battery manufacturing facilities that implement a collection programme and meet minimum emission standards for used batteries will be eligible to place the eco-label on their products THE ENVIRONMENT (PROTECTION) ACT, 1986 In this Act, unless the context otherwise requires,-(a) "environment" includes water, air and land and the interrelationship which exists among and between water, air and land, 46

and human beings, other living creatures, plants, micro-organism and property; (b) "environmental pollutant" means any solid, liquid or gaseous substance present in such concentration as may be, or tend to be, injurious to environment; (c) "environmental pollution" means the presence in the

environment of any environmental pollutant; (d) "handling", in relation to any substance, means the

manufacture,

processing,

treatment,

package,

storage,

transportation, use, collection, destruction, conversion, offering for sale, transfer or the like of such substance; (e) "hazardous substance" means any substance or preparation which, by reason of its chemical or physico-chemical properties or handling, is liable to cause harm to human beings, other living creatures, plant, micro-organism, property or the environment; (f) "occupier", in relation to any factory or premises, means a person who has, control over the affairs of the factory or the premises and includes in relation to any substance, the person in possession of the substance; (g) "prescribed" means prescribed by rules made under this Act.

3. SOCIOCULTURAL FACTOR Population: India is home to 17% of the World’s total population. Birth rate: 22.22 births/1,000 population (2008 est.) Income distribution:

47

Income plays an important role in buying the shoes. Many people buy the shoes according to their income. Since last few years, the industry grows at the higher rate and also the economic field. As a result of this the sales of shoes also increase. Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Per capita income in Rs. 20996 22413 23890 25696 27784 29786

• • • • • •

•

48

• •

•

Gender Ratio At birth: 1.12 male(s)/female under 15 years: 1.098

male(s)/female 15-64 years: 1.061 male(s)/female... According to http://www.cbsnews.com/stories/2007/10/04/country_fac ts/main3 • Growing India: India is the world's second most populous country and is expected to be the most populous by 2040.The country is undergoing the same forces of demographic transition that have been experienced elsewhere, only delayed by few decades. • Young India: Over 700 million Indians are below 35 years of age and over 550 million are below 25.However despite its youthful population, India's size means that it is home to the second largest number of older people in the world, in absolute terms.

•

Aspirational India: The emerging middle class will surge tenfold; exceeding 500 million by 2025.It will command 60% of the country's spending power. 49

•

Education:

Now days, education level is increasing day by day in India. Today companies are educating customers more about product features quality and new fashion trends. 4. TECHNOLOGICAL FACTOR Foreign market and foreign companies are now a day’s using very high technology that would help them to reduce their cost and compete in the market. Changing environment and changing technology may lead the companies to change their technologies accordingly. The technology used by many companies is very costly and incurred very huge cost to adopt it. Technological Risk includes the risk of change in the technology and change in the trend in the market. Due to change in the Technology now a day’s E- Bike companies compete differently in market, on the basis of such specification:

2005 Manufacturer guaranteed battery lifetime (months) Anticipated battery life (months) Battery energy density (Wh/kg) E-bike price 3 7-8 30 25,00030,000

2008 12 18-24 40 18,00025,000

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4.2 OT ANALYSIS ON E- BIKE INDUSTRY OPPORTUNITIES • • • • • Largely fragmented and unorganized. Increasing pollution and people mind set towards industry will help to grow in country. As technology of automotive changes occurred every day. Low entry barrier, easily any one can enter in this industry. No registration so no record available at Govt office for this vehicles. THREATS • • • Becomes easy and cheapest exporting spare parts for E-Bike from china. Customers perception toward E-Bike, perceived as more suitable for women. Major competitors are the normal bikes as Hero Honda, Bajaj etc as now they are reducing price and launching new bikes at fewer prices. • • • New changes easily suited and applied out to all E-Bikes. Due to New Technology, E Bike becomes more cheapest, effectively operating and etc. Limited usage of E-Bike as a City Bike.

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4.3 FIVE FORCE ANALYSIS ON E-BIKE INDUSTRY

THREAT OF NEW ENTRANTS (MODERATE TO HIGH)

The new entrant have to overcome barriers like However, there could be a possibility of threat of imports from CHINA on account of the following:

Demand of the E-Bike is continuously in India as well as globally. Existing members are looking to expand their market reach by expanding geographic presence where currently they are not.

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1. Economic of scale For company to enjoy cost advantage it must large scale of operation 2. Cost and resource disadvantage Existing firms have low unit cost as a result of large scale operation and cheaper suppliers of raw material which may not have new entrants but now day’s new entrants E-Bike companies are collaborative with China which is full of raw material. 3. Brand preference and customer loyalty National players have some brand preference but customer loyalty which may absent due to nature of product. So new entrant doesn’t effected by this. 4. The capital requirement Industry requires low capital for starting new ventures. 5. Distribution channel Any E-Bike company now a day’s require good distribution network for providing their product to end user. But the Present local players don’t have good channel to reach to customers.

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THREAT OF CUSTOMER BARGAINING POWER 1. The supplying industry comprises large number of small operators. 2. The cost of switching supplier is high, due to nature of product, it include the greater risk to change the product.
3. Backward integration is easily possible in the Industry, which

is only positive point for customers.

COMPETITIVE PRESSURE FROM SUBSTITUTES (MODARATE TO HIGH) It reduces demand for particular class of the product as the customer switch to the alternatives. It may take different form like Since, there are many substitutes for E-Bike, which is a key segment for personal transportation vehicle; demand for it would always exist. Traditional transportation vehicles, Twowheelers, Four-wheeler can affect the industry one or other way.  Good substitutes are readily available in market.

Substitutes use like normal two-wheelers is most important sector for the customers.  Increasing in fuel price reduce the threat of substitutes and encourage the players of E-Bike  For user switching cost to the substitutes are very high

INTER FIRM RIVALRY- INTENSE (MODARATE)

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The threat of price competition that is the end result of all the threats ultimately leads to adoption of cost reduction strategies by industry players. Therefore, managing input costs and distribution channel through operational efficiencies is the main strategy forBike companies to mitigate risks. Competing including all national and local player, Indian E-bike industry has about 90 different players, who are geographically desperate.  Different rivals located in different areas of the country have diverse object and strategy.  No. of rivals in E-Bike industry are increasing and most of them are equal size and competitive capability but in small local area.   Products of the rivals cannot be easily differentiated. Most of rivals are dissatisfied with their market share and position


Competing including all national and local player, Indian Ebike industry has about 90 different players, who are geographically desperate.



Ulra motors now separated from previous partner Hero.

BARGAINING POWER OF SUPPLIER (LOW) Electric hub motor, Electronic motor controller, Electronic accelerator, Battery pack Battery charger are major constitute for the overall raw material also transportation is important factor.

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•

There are many substitutes for raw materials. Many local and small players buy the raw material from the Chinese suppliers, so the power of suppliers is low

•

Government also reduces the excise duty to encourage the companies, where many players buy the component from Chinese suppliers.

• •

Switching cost of one supplier to other supplier is relatively low. Threat of forward integration by supplier is high, because of less capital requirement and government policies toward the industry.

•

Customer

fragmentation

is

high.

Customers

are

geographically spread in all over the country, and suppliers could not cover the all segments.

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CHAPTER: 5 PROBLEMS, OBJECTIVE
5.1 PROBLEMS ‘’Even after intense subsidies (not in India) these vehicles failed to make definite market why?’’ Some of their biggest minuses of these vehicles are underpowered performance, the heavy weight of batteries, which consequently drags the performance even further, poor driving range per charge of the batteries and inability to offer all the devices that gasoline/diesel powered cars offer since they will drain the battery and charge needs to be saved for the main purpose of driving the car. It lacks practicality and luxuries that gasoline powered vehicles have been able to offer. Other problems include less availability of spare parts and qualified mechanics, bad dealer network, even though it is claimed maintenance free, problems with electrical kits often occurs. Very importantly these vehicles are priced too high for instance Reva is priced on par with a well established car like Zen estilo makes it unattractive. But the manufactures estimated that production of higher volumes of EVs will reduce the cost by 10-15%. Also larger number of regional players makes electric vehicle less reliable since prospect of the company itself uncertain. Many people questioned me about the location of availability of these bikes. The industry requires consolidation and proper marketing.

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5.2 RESEARCH OBJECTIVE

PRIMARY OBJECTIVE • To study customer perception and awareness for E-Bikes.

SECONDARY OBJECTIVE

• • •

To analyze the situation exits in market for E-Bikes in twowheeler industry. To study how E-bikes has generated competitive advantage in the two-wheeler industry. To measure the role of technology and its impact on players involved in two-wheeler industries.

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5.3 APPROACH & METHODOLOGY 5.3.1. Research Design design used for this study is exploratory and

Research

descriptive by nature. Exploratory Research



It will tend to explore the position of E-Bike in Two-wheeler industry. It will also generate insights upon the product and related services that E-bike manufacturers need to generate in order to generate competitive advantage. Descriptive Research



It will study the profile of the current and potential target market of E-bikes, with a view of understanding their preferences, perceptions and behavior with respect to E-bikes. Research Instrument



Questionnaires Data Types Primary data will be collected through the following means: Survey through questionnaire with close ended and open ended questions for users and nonusers of E bikes... Secondary data will be collected from the Newspaper, magazines, Journal and websites.



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5.3.2.

SAMPLING DESIGN



Sample Units Individuals- Users and Nonusers of E-bikes Sample Size Approx 50 for Nonuser of E-Bike Customers Approx 50 for User of E-Bike Customers Sampling Technique Convenience sampling for users and nonusers of E bikes





5.3.3.

DATA COLLECTION

Data collection is done by using survey Questionnaire, both open and close ended. Data Collection done by following means: Personal Visit to Owners/Managers: Data collected by having personal interaction with owners/managers of E-Bike show-room. Survey Forms: Data collected by filling Questionnaires which includes nonuser as well as user of E-Bike in TWI.





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5.4 DATA-ANALYSIS 5.4.1. NON-USERS OF E-BIKES

1. Which two wheeler medium does you used? [ ] Bike [ ] Scooter Bike Scooter 39 11

• •

From our survey of Nonuser of E-Bike, I found that Bike is more preferred than scooter in two wheeler industry. I have surveyed 50 Nonuser of E-Bike, out of that all 39 have Bike and from them 11 have Scooter also.

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2. Which company’s Bike do you have? [ ] Bajaj [ ] Hero Honda [ ] TVS [ ] Others____________ Name of Company Bajaj Hero TVS Yamaha LML Kinetic Others No. of Respondent 14 15 8 6 5 2 [ ] Yamaha [ ] LML [ ] Kinetic

• •

I surveyed 50 consumer, out of that 14 has Bajaj, 15 have hero Honda, 8 has TVS bike, 6 have Yamaha Bike and etc. So, in two wheeler industry most cut throat competition between Hero Honda and Bajaj bike.

3. Are you aware about following any E-Bike Brand Name?

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[ ] Yo-Bikes [ ] Power Bike [ ] Hero Ultra [ ] Mark Bike Name of Company Yo-Bikes Power Bike Hero Ultra Mark Bike TVS E-Bike Atlas E-Bike Oreva Bike Others

[ ] TVS E-Bike [ ] Atlas E-Bike [ ] Oreva Bike [ ] Others __________ No. of Respondents 46 15 26 23 3 8 21 8

•

From survey of consumer, I found that Yo-Bike has good market awareness in EV segment in two wheeler industry. Out of 50 respondents, 46 have aware about Yo-Bike and second is Hero Ulra with 26 customers.

4. Have you thought of purchasing an E-bike? 63

[ ] Yes [ ] No Yes No 22 28

•

After conducting survey of Nonusers of E-Bike, I found that out of 50, 28 people do not think about purchasing an E-Bike.

•

Out of those people few are not aware about E-Bike and few are don’t want to change their existing two wheeler.

Those who are not interested, they feel that their existing Bike/Scooter give better performance compare to E-Bike

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5. What features will makes you purchase of E-bike? (Please Give the Rank) [ ] Reduce Noise Pollution [ ] No fuel [ ] Average Features Reduce Noise Pollution No fuel Average Speed Look Weight [ ] Speed [ ] Weight Rank 3.3 2.0 3.8 3.1 3.5 5.0

[ ] Look

•

After conducting survey of nonusers of E-Bike 22 respondents have a thought of purchase of E-Bike and they are more attracted to the no-fuel feature.

• •

And they give most of second rank to speed. So, From above we can conclude that people are most concern towards No-fuel, Average, Look.

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6. What are the reasons of not being interested in E-bikes? (Please Give the Rank) [ ] Lack of awareness [ ] Lack of speed [ ] Lack of Carrying Load [ ] Storage Problem [ ] Charging Problems Reasons Lack of awareness Lack of speed Lack of Carrying Load Storage Problem Charging Problems Rank 2.4 2.9 2.8 3.4 3.5

•

As 28 respondents who are nonuser of E-Bike and also not interested for purchasing in future, from there responses I found that the main problem is lack of awareness as compared to their normal bikes.

•

The others main reasons not interested in E-Bikes are storage problem and lake of speed also.

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7. If you want to purchase an E-bike then how much will you spend on E-Bike? [ ] 15,000 - 25,000 [ ] 25,000 – 35,000 [ ] 35,000 and Above 15,000 - 25,000 25,000 – 35,000 35,000 and Above 32 16 2

•

From 50 nonusers of E-Bike survey, 32 respondents are interested in price range 15,000-25,000 for purchase in future.

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5.4.2.

USERS OF E-BIKE

1. Are you aware about any following Electric Bike Brand Name? [ ] Yo-Bikes [ ] Power Bike [ ] Hero ultra [ ] Mark Bikes Name of Company Yo-Bikes Power Bike Hero ultra Mark Bikes TVS E-Bike Atlas E-Bike Oreva E-Bike Others [ ] TVS E-Bike [ ] Atlas E-Bike [ ] Oreva E-Bike [ ] Others_____________ No. of Respondent 50 15 34 31 16 14 38 12

•

From our survey I found that Yo-Bike has covered good market awareness in E-Bike segment in two wheeler industry.

2. Which brand of E-bike do you own? [ ] Yo-Bikes [ ] TVS E-Bike 68

[ ] Power Bike [ ] Hero Ultra Name of Company Yo-Bikes Power Bike Hero Ultra TVS E-Bike Atlas E-Bike Others

[ ] Atlas E-Bike [ ] Others_____________ No. of Respondent 24 4 3 5 2 12

• •

From our survey I found that Yo-Bike has covered good market penetration in EV segment in two wheeler industry. We surveyed 50 consumers, out of that 24 have Yo-Bike, follow by TVS, Power Bike and Hero Ultra, so we can say that in future all these will become good competitors to YoBike.

3. How much did you spend on E-Bike? [ ] 15,000 - 25,000 [ ] 25,000 – 35,000 69

[ ] 35,000 and Above

15,000 - 25,000 25,000 – 35,000 35,000 and Above

8 36 6

• • •

Out of 50 consumers, 36 are spending their money between Rs15, 000-25,000. And those who spend between Rs 15,000 -25,000 have cycle type of E-Bike. And above 35,000 Rs are comparatively high speeds than others.

4. Since How much time you have been using E-bike? [ ] Six month [ ] 2-3 Years 70

[ ] 1-2 Years

[ ] more than 3 Years

Time Six month 1-2 Years 2-3 Years more than 3 Years

No. of Respondent 11 17 15 7

•

Survey represent that the maximum 34 % of the people have been using the E-Bike since 1-2 years and 30 % of the people have been using the E-Bike since 2-3. So, we can say that they are satisfied with the Existing Bike.

•

And 14% from that using since more than 3 years, so from that we can conclude they don’t want to switch over to normal bikes.

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4.

What features of the E-bike made you purchase it? (Please Rank) [ ] Eco Friendly [ ] No fuel [ ] Weight [ ] Speed [ ] Electric Start-up [ ] Low Maintenance [ ] Look Rank 3.8 2.4 2.8 4.0 3.8 4.3 [ ] Average

[ ] Easy Battery Charge [ ] Reduce Noise Pollution Features Reduce Noise Pollution No fuel Average Speed Weight Look

•

After conducting survey of Users of E-Bike 50 respondents, they are more attracted towards the no-fuel and Average features.

•

They also attracted with the features of E-Bikes as Ecofriendly, Weight as respectively as per their usage experience.

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5. Who influenced you to purchase E-Bike? [ Relatives [ ] Word of mouth [ ] Advertising ] Friends and [ scheme [ ] Showroom opinion [ ] Others (please specify) Influenced by: Friends and Relatives Word of mouth Advertising Sales promotion scheme Showroom opinion Others (please specify) NO. of Respondent 10 20 9 5 2 4 ] Sales promotion

•

People who are having E-Bike said that are mostly influenced by the word of mouth, because of E-Bike is high involvement product so people search information more about it and most of them believe on user’s word of mouth.

• •

And after that most of influenced by Advertising, and most of them they see Yo-Bike advt. People are not much influenced by showroom owner’s opinion.

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6. The greatest advantage of an E-bike over normal bikes is (Answer in one line) Advantage No need of Fuel No need of License Pollution Free Others No. of Respondent 18 16 12 4

7. Please rate the following 74

1- Highly Agree, 2- Slightly Agree, 3- Neutral, 4- Slightly disagree, 5- Highly disagree.

A. My E-bike gives me efficiency than normal bikes. [ ] B. I get value for money spent on E-bike. [ ] C. I feel comfort due to less weight. [ ] D. Easy accessibility of service center. [ ]

H.A. A B C D 14 12 6 5

S.A. 12 18 17 9

Neutra l 12 13 11 14

S.D. 8 5 12 13

H.D. 4 2 4 9

Total 126 117 141 162

Rate 2.52 2.34 2.82 3.24

75

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8.

What are the problems encountered with E-bikes? (Rank the following) [ ] Charging problems [ ] Spare part problems [ ] Limitation of carrying load [ ] Not good looking

Problem Encountered Charging problems Spare part problems Limitation of carrying load Not good looking

Rate 2.0 2.2 2.7 2.9

•

From survey we conclude that, most of customers give rank 1 for limited carrying load capacity, as which seen in graph that the average rate score is 2.

• •

And second is give to spare parts problems with rate of 2.2. And they are least concern about good looking design. 77

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9. What do you think E Bikes is widely suited to whom? [ ] Teenager [ ] Young [ ] Older

Suited to Teenager Young Older

No. of Respondent 24 9 17

•

From survey we conclude that, most of customers feel that the E-Bike is widely suited to teenager and old persons and the youth guys want speed with power that can not possible with it so it’s called out as City Bike not used out for long highway ride.

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10.

Would you advise others to purchase it? [ ] Yes [ ] No

Like to Advise Yes No

No. of Respondent 34 16

People consider E-Bike as a good vehicle and 64% respondent like to advice others to purchase it. Which indicate the positive sign for Industry?

11. Would you like to purchase it (E-bike) again? [ ] Yes 80

[ ] No Like to Purchase Yes No No. of Respondent 29 21

Out of 50 respondent 29 (58%) like to purchase E-Bike again, it show that now customers become brand loyal toward this Industry.

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CHAPTER: 6 FINDINGS AND CONCLUSION

82

CHAPTER: 7 LIMITATION OF THE STUDY

83

CHAPTER: 8 RECOMMENDATIONS

84

CHAPTER: 9 APPENDICES

85

CHAPTER: 10 BIBLIOGRAPHIES

86