Why EV Wave?

Electric Vehicle
Transition Masterclass

Realizing the business

opportunity

Presenter: Kanv Garg

The better the question. The better the answer.

The better the world works.
1
Where is the business
opportunity in EV
space?
India’s e-mobility market is slated to bring around US$27Bn capital
investments with around US$11Bn* in revenue to power sector by 2030

EV projections Infrastructure projections and investment required

100 65% 70%
Parameter 2025 2030 2040
60% Quantity (Mn) 1 7 85
80 Home chargers
Value (USD Bn or Mn)

EV penetration (%)
50% Investment ($ Bn) 0.5 4 54.5
Quantity (Mn) 0.02 0.1 1
60 40% Superchargers
Investment ($ Bn) 0.7 5.1 50
Quantity (Mn) 0.04 0.2 3
40 30% Destination chargers
Investment ($ Bn) 0.09 0.7 8.2
20%
20
15% 10%
5%

- 0%
2025 2030 2040 Plant & Factory projections and Benefit to Power
EV sales (USD
1 2 17
investment required Utilities
Bn)
EV fleet (Mn) 1 7 95
Parameter 2025 2030 2040 Parameter 2030
EV Penetration 5% 15% 65% Electricity demand from EVs
Vehicle plants ($ Bn) 1 4 40.2
Year-wise (Twh) 69.6
Giga-factories ($ Bn) 2 10 100.5
Expected revenue from
Service Centers ($ Bn) 0.7 4 50 electricity demand from EVs
($ Bn) 11
Page 3 Source: Morgan Stanley and *EY Analysis
 A two-dimensional value chain best represents the possible business
opportunity interventions
Value Chain
Illustrative representation
Raw Mat. Build Sell/leasing Finance Install Operate Maintain

1 EV Batteries

2 Charging stations

3 Vehicles

4 Networks

5 Distributed generation

6 Distributed storage

7 Energy Management

8 Software & analytics

Page 4 Source: Morgan Stanley and Industry Consultations

 Investors are not always sure where to invest in the emerging EV ecosystem

EV value pools offer varied appeal for investors due to different opportunity size, capex requirement, investment
horizon, market competition and complexity
Opportunity size
Excavation and exploration Processing battery grade lithium

Cathode processing Battery cell manufacturing

Battery module and pack manufacturing Battery pack assembly for EVs

Storage solutions for EV demand integration Battery servicing

Battery repurposing Urban mining

Capex Design and production of EV platform EV retail
Competition
requirement
After-sales service of EVs EV based mobility services

Fleet management Production of EV components

Charger manufacturing City planning assessments

Public charging stations Battery swapping stations

Portable charging solutions Home/community charging solutions

Metering and billing management systems Network optimization solutions

Electricity retail to charging stations EV financing and leasing

eRoaming services Battery leasing

Ease of Investment Point of Interface (PoI) eRoaming services2

implementation horizon Battery leasing3 Customer information systems
Note: the above graphic is only an illustration and does not reflect true market data

Page 5 Source: EY Analysis

The size and relevance of EV value pools depends on local market dynamics

Factors influencing opportunity size for various EV value pools

GOVERNMENT REGULATORY RAW MATERIAL OIL & GAS COST GEOGRAPHICAL

EV AMBITION FRAMEWORK AVAILABILITY COMPETITIVENESS DNAMICS

A clear government
roadmap with a defined
policy target for EVs and
EVSE, along with policies
and incentives to promote
EV sales, battery and
component manufacturing
Regulations for resale
of electricity,
standardization of
charging infrastructure
and calibration of
battery configurations
Presence of natural
resources (metals /
minerals) for batteries
and other raw materials
Availability of fossil fuels
(oil and gas) reserves
impacting cost
competitiveness of EVs
Demographics and
geographical constraints
(parking availability, road
length, etc.), determining the
potential size and scale of
operations in a particular
market

Market attractiveness
+ Synergy with existing business

Attractiveness of EV
value pools = Opportunity size Competition Barriers to entry

Policy support Growth rate

Page 6 Source: EY Analysis

2
Is ‘collaboration’ the
only ‘innovation’
needed?
The EV value pools present significant synergies and possibilities for
market players
Market players Automobile OEMs Utilities Other stakeholders
EV value pool Mining O&G Financing Smart city
OEM (2W) OEM (4W) OEM (CVs) Retailer Networks IPP
companies companies players developers
Excavation and exploration
Processing battery grade lithium
Cathode processing
Battery cell manufacturing
Battery module and pack manufacturing
Battery pack assembly for EVs
Storage solutions for EV demand integration
Battery servicing
Battery repurposing
Urban mining
Design and production of EV platform
EV retail
After-sales service of EVs
EV based mobility services
Fleet management
Production of EV components
Charger manufacturing
City planning assessments
Public charging stations
Battery swapping stations
Portable charging solutions
Home/community charging solutions
Metering and billing management systems
Network optimization solutions
Electricity retail to charging stations
EV financing and leasing
eRoaming services
Battery leasing
Point of Interface (PoI)

Page 8 Source: EY Analysis KEY: Degree of Synergy LOW HIGH

India’s developing electric mobility ecosystem is spreading across segments and
is expected to gradually see convergence
Vehicle Manufacturer Charging infrastructure

Energy Storage Mobility solutions

Page 9 Source: EY Analysis, News Articles

Electric mobility market will witness cross sectoral alliances across the value
chain towards products/portfolios diversification
Product Charging
Cell and component Pack and module
Rare earth sourcing manufacturing / infrastructure / Services
manufacturing manufacturing
assembly deployment
Upstream Midstream Downstream

Page 10 Source: EY Analysis

3
How collaboration
promotes charging
infrastructure?
Charging infrastructure holds the key to electric Mobility uptake in India and
struggles to present itself as a viable business case

City level partnerships have the potential to reduce cost to consumers, capital cost
and increase charger utilization

Private land owners DISCOM

► Land is a major cost component
Capital cost Service charge
for charging station operators
that can be optimized through
city-level collaborations and can
EV fleet enhance overall business
and customer
Charger utilization
viability and timeliness of
deployment.
Transport Utility Charging operator ► Collaboration and an integrated
Charger utilization project preparation at the city-
level is the key to reduce overall
Urban local body Capital cost
expenditure and achieve efficacy
of public procurement.

Page 12 Source: EY Analysis

Charging infrastructure is more of a real estate problem, than a technology or
a financing one

Land is a major cost component for charging station operators that can be
optimized through strategic city-level collaborations that can enhance
overall business viability and timeliness of deployment.

Collaboration and an integrated project preparation at the city-level is the

key to reduce overall expenditure and achieve efficacy of public
procurement.

City-led development

4C approach
Collaborations among
stakeholders
Charging infrastructure deployment

Customer experience
enhancement

Page 13 Source: EY Analysis

Smart partnerships can open several business opportunities in the charging
space
EV value pool attractiveness for utilities KEY
Low attractiveness High attractiveness

Electricity Electricity retail

Synergies with utilities’ existing business

retail
Network Public Public charging stations
optimization charging

Key value pools for utilities

Storage
solutions stations
solution for
Home
EV demand Point of Interface (PoI)
integration /community Point of
charging interface
Fleet stations
management (PoI) Network optimization
solutions
Battery
repurposing
Home charging solutions

EV fleet management

Storage solutions for EV

demand integration

Battery repurposing

Market evaluation
Page 14 Source: EY Analysis
Note: Size of the bubble represents value pool attractiveness | All value pools are not labelled for visual clarity
4
Have we seen this in
action?
Case Study: Developing EV Ecosystem in the Nordics

OEMs/fleet operators Cost structure Pricing end customer

OEMs are highly involved in EV ► Fixed rent ► Fixed price per ► Fixed software
►
charging infrastructure as it ► Shared investment charger investment €/minute
► Buy-out option after ► Smart grid ► Software license
impacts EV sales
contract end investment on case
€/kWh
► Fleet operators are dependent
on charging infrastructure to ► Variable rent
(income dependent)
to case basis
► Hardware lease
€/charge
electrify fleets

Charging environment

Power source Power grid Land / Site Hardware CPO

User interface

Key selection criteria

► Natural hedge
► Churn reduction
(power retail)
Page 16 Source: EY Analysis
► Car type (brand, plug,
max. charging speed, in-
car system etc.)
► Price of charging
► Active subscriptions
► Shift towards green ► Increase traffic and ► Increase market ► Margin from ► Need for fast charging
infrastructure sales share electricity sales ► Available fast chargers
► Natural hedge for ► Value chain capture ► Subscription
► Access to AC chargers at
petrol stations
work/home
Incentives for investing in charging infrastructure
 Key lessons learnt on city-level planning side can lead to holistic and viable
electric mobility ecosystem
► Assessment of existing margins in distribution transformer 1
► Literacy levels of residents and daily commuters
levels ► Economic level to understand the market for different types of electric
► Load flow analysis vehicle
► GIS assessment Assessment of
► Preference for medium of transport for inter/intra-city commutation
► Access of reliable power demographic
aspects and 1 ► Preference of medium of transport for first and last mile connectivity
► Existing type of point of connection ► Commuters preference for ride sharing services
consumer
► Applicable tariff structure behaviour
► Grid integration for vehicle to grid (V2G) implementation Infrastructure
► Renewable power purchase obligation assessment of
6 power Assessment of ► GIS assessment and mapping
distribution existing
2 ► Medium of transport for commuting within the city.
infrastructure transportation
► Existing vehicle stock and growth trends system ► Identification of routes with highest commutation
availability and
► Forecast vehicle stock and EV penetration resilience ► Distance of routes with highest commutation
► Determine year-on-year (YoY) growth rates of electric ► Route Planning
vehicles in the city Implementation
► Determine the number and type of Chargers/ number of plan
Battery swapping stations
► Number of parking lots in shopping malls, railway ► Number of buses –
station and office complexes, etc. Infrastructure Infrastructure o plying in and around the city
► Number of fuel retail stations (sharing of space for 5 assessment for assessment for 3
o plying on routes of highest commutation
distribution/ retail of battery) for installation of DC Fast public chargers electric buses o depots available in and around the city
Chargers or setting up Battery swapping stations Assessment of ► Assessment of route plan and schedule
► GIS assessment operations of ► Average number of trips in routes of highest commutation
first and last ► Average distance between the depots
4 mile
commuting ► Average number of buses parked in a depot
► Number of rickshaws - vehicles in a ► Availability of space in depot for setup of charging stations for e-
► plying in the clusters of a city city Buses
► plying on routes of highest commutation ► Availability of alternate spaces in the route
► Average distance commuted by rickshaw in a day ► IT and automation for metering, billing and data related to
► Average number of trips taken by e-rickshaw in a day utilization and handling of electric bus
► Free space availability for parking and access to
reliable power for charging

Page 17 Source: EY Analysis

 Why EV Wave?

Let’s continue our

conversation

Kanv Garg
Director, Electric Mobility
+91-9711060647
kanv.garg@in.ey.com
The better the question. The better the answer.
The better the world works.