Electric two wheelers
MS 403
Engineering Entrepreneurship
Case Study: Electric Two-wheelers: Suzhou, China versus India
Sumit Deshmukh
Prashant Patel
For the present case study, we have taken 2 generic products – TVS Scooty Pep+ - a petrol powered bike and Hero Electric E-Sprint - an electrical 2 wheeler for quantitative cost analysis. Market prices and power rating of these bikes are comparable and hence gives us a more realistic account.
TVS Scooty Pep
Cost (Rs.)
Max. Speed (kmph) km/unit Fuel price/unit (Rs./unit) km travelled/day km travelled/yr unit/yr Net spending
Annual Saving (Rs.)
Hero Electric ESprint
42000
65 - 70
45
70
25
9125
203
14194
41500
45 - 55
70
15
25
9125
130
1955
12239
As can be seen from the table, using an Electric vehicle is rather a financially more sound decision. The power consumption, load capacity and the maximum speed of a petrol powered bike is more than that of E2W (Electric 2 wheelers). In addition to this E2W require 8 hrs. of daily charging. In spite of this, annual net savings of around Rs.12000 – 13000, more than offsets all of these shortcomings. But as we see clearly E2Ws are not popular in India and their use is limited.
In order to promote and widen the base of electric two wheeler vehicles especially in India, it is first important to analyse the conditions in India and China - why the concept of E2W worked in China and why it is still in a nascent stage in India.
The principal reasons why Electric vehicles have such a firm hold in Chinese market are as follows:
1. Strong policy-making and execution – Imposing ban on Gasoline powered vehicles in large cities which removes a large chunk of market share.
2. Offering attractive incentives along with an urban economical upsurge and other related issues causing consumers to shift to E2W.
3. Technological development in E2W field resulting into lowering of prices coupled with improved quality.
4. Targeting a wider cross
Engineering Entrepreneurship
Case Study: Electric Two-wheelers: Suzhou, China versus India
Sumit Deshmukh
Prashant Patel
For the present case study, we have taken 2 generic products – TVS Scooty Pep+ - a petrol powered bike and Hero Electric E-Sprint - an electrical 2 wheeler for quantitative cost analysis. Market prices and power rating of these bikes are comparable and hence gives us a more realistic account.
TVS Scooty Pep
Cost (Rs.)
Max. Speed (kmph) km/unit Fuel price/unit (Rs./unit) km travelled/day km travelled/yr unit/yr Net spending
Annual Saving (Rs.)
Hero Electric ESprint
42000
65 - 70
45
70
25
9125
203
14194
41500
45 - 55
70
15
25
9125
130
1955
12239
As can be seen from the table, using an Electric vehicle is rather a financially more sound decision. The power consumption, load capacity and the maximum speed of a petrol powered bike is more than that of E2W (Electric 2 wheelers). In addition to this E2W require 8 hrs. of daily charging. In spite of this, annual net savings of around Rs.12000 – 13000, more than offsets all of these shortcomings. But as we see clearly E2Ws are not popular in India and their use is limited.
In order to promote and widen the base of electric two wheeler vehicles especially in India, it is first important to analyse the conditions in India and China - why the concept of E2W worked in China and why it is still in a nascent stage in India.
The principal reasons why Electric vehicles have such a firm hold in Chinese market are as follows:
1. Strong policy-making and execution – Imposing ban on Gasoline powered vehicles in large cities which removes a large chunk of market share.
2. Offering attractive incentives along with an urban economical upsurge and other related issues causing consumers to shift to E2W.
3. Technological development in E2W field resulting into lowering of prices coupled with improved quality.
4. Targeting a wider cross