Confidential : Not to be circulated EVs – The India Opportunity Mahesh Babu, CEO – Mahindra Electric Copyright © 2019 Mahindra Electric. All rights reserved. Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Confidential : Not to be circulated India will have 7 Mega cities with population greater than 7m by 2030 India now has 50 cities with populations of more than 1 million Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Factors driving urbanization Confidential : Not to be circulated India - Nominal GDP India by the 28 Trillion USD numbers 30 25 • India’s GDP growth at the rate of 7% 20 • India is now the world’s 7th largest economy(Nominal GDP terms) – Will be 3rd largest in 2050 15 7.8 • 850mn of the 1.35bn people in India are under the Trillion age of 35 10 USD 2.6 • Per capita income of around USD 1950 – Will be USD Trillion 13,660 by 2040 5 USD 0 2017 2030 2050 Source: PwC: World in 2050 Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Confidential : Not to be circulated India – A unique market 2 wheelers 3 wheelers • ~80% of all automotive sales in India are two • India is one of the largest markets in the world wheelers – 21m in FY19 for 3w – 0.7m sales in FY19 • Close to 2m are involved in courier services – • 3w address one of the most important huge market challenges of urban transportation – Last mile connectivity Fleet Commercial • Routes are defined and they operate in a • 60% of the overall goods transportation in the limited geography country happens on road – Huge market • Utilization of vehicle is close to 25-30% • High vehicle utilization in the sector Personal Penetration of private passenger cars in still low compared to other developed markets Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Mobility needs a reset Confidential : Not to be circulated To curb emissions and accelerate towards zero emissions, the government skipped BSV and is directly enforcing BSVI norms Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. India Policy Snapshot Confidential : Not to be circulated Vision Policy Implementation NITI Aayog’s report on Karnataka first released state EV policy Transformative Mobility with BEVs 5% GST for BEVs Tax exemption for EV Various states owners running EV bus pilots Auto makers pushed • Utilities setting up charging infra. to make EV plans • NTPC seeks pan India license to setup charging stations Few other states have released/drafting EV policy FAME 1.0 extended to 30th Sep’ 2018 FAME 2.0 announced in March’ 2019 Custom duty exemption on EV parts Incentives for local manufacturing of EV parts EESL’s initiative to create viability through scale Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. India EV Policy Landscape Confidential : Not to be circulated • 7 states and 1 UT have released their EV Policies • 3 states have draft plans ready EV Policy Demand Charging Manufacturing Incentives Infrastructure Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Growth paths of global markets Confidential : Not to be circulated Forecasted BEV fleet penetration Growth in China Already largest EV market by volume Mass vehicle route thro’ subsidy Government led – People supported Region wise growth Growth in Norway Largest EV market by Market share Premium vehicle route thro’ mix of incentives and fees Government led – People supported Growth in US Premium vehicle route People Led – Govt. supported EV growth in India Mass vehicle route – with improving total cost of operations of EVs (Government led – People supported) Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Factors driving electric mobility in India Confidential : Not to be circulated Source : EY : Standing up India Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Mahindra’s Electric journey Confidential : Not to be circulated 1990 2010 2012 2013 2014 2015 2016 2017 2018 2015 1999 2010 2014 Only Indian team 2018 Launch of TREO Mahindra Mahindra Halo Sports car in Formula E 2017 Auto Showcase - launches first acquires majority concept NITI Aayog eKUV, eBus electric vehicle stake in REVA. showcased Report, vision MESMA, +NEMO 8 seater Bijlee 2013 2030 announced Top 50 innovative 2015 companies Successful 2016 deployment of 4 new launches 2014 Fleet business - e2o UK Announced entry 2012 - e-Verito Quick2charge Into EV supercars Mahindra Reva - e2o Plus Mahindra fast charging 2001 manufacturing - e-Supro delivers first Reva-i launched facility launched cars of EESL inaugurated. 2013 tender for IGBC platinum e2o launched 10,000 vehicles Inaugurated rating 2015 Launch of GenZe Facility expansion Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Current R&D Capaility Confidential : Not to be circulated KEY ACHIEVEMENTS CAPABILITY DESIGNED FOR INDIAN MANUFACTURING AND ENVIRONMENT R&D talent pool High strength steel space frame 300+ 80+ 10+ COST EFFECTIVE DRIVE TRAINS Engineers Researchers Scientists 7 patent applications (PhDs) Hill hold and Regenerative braking Patent Activity EXTENSIVE USE OF PLASTICS & COMPOSITES 13 52 >150 High impact ABS Plastic Sheets Patents Ongoing Target for No painting and reduces investment in production FY 20 for granted patents IN-HOUSE EXPERTISE ON LI-ION BATTERY PACK & patents BATTERY MANAGEMENT SYSTEM (BMS) DEVELOPMENT 22 patents on battery and BMS technologies Platform can support multiple batteries & capacities11 Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Leading the way in shared mobility Confidential : Not to be circulated LITHIUM- CORPORATE EMPLOYEE OLA – PARTNERSHIP FOR SHARED ZOOMCAR LAUNCHED IN MYSORE AND UBER AND M&M COMMUTING MOBILITY IN NAGPUR HYDERABAD PARTNERSHIP ANNOUNCED EESL TENDER DELIVERY IN PROGRESS, HRTC – CLEAN PUBLIC TRANSPORTATION BAGHIRATHI ORDER RECEIVED IN LAST MILE – MOU WITH TWU AND SMARTE PHASE 1 COMPLETED BANGALORE FOR TREO 12 Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Confidential : Not to be circulated REAL ON ROAD EXPERIENCE 6000+ 90+ Across vehicles cities in private and Our electric powertrain on road India commercial enabled cars have run segments more than 135 million electric kms and counting Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Mobility solutions Confidential : Not to be circulated NEMO, which stands for "Next-Gen Mobility", is an e-mobility platform based on the cloud that enables a new generation of Electric, Connected and Shared mobility services Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Integrated sustainable mobility solutions Confidential : Not to be circulated (eg: Auroville community) Vehicle deployment Enable mobility models Enable eco-system Energy storage Offer our portfolio of Aims at enabling Work closely with Support in End to End EVs as suitable for the mobility models such partners in creating clean and green application as ride sharing, ride eco-system (parking, solutions – Mobility to hailing and self-drive charging infra) and Complete sustainable through integrate on mobility living platform Indian Institute of Puducherry Smart City Partners: Science, Bangalore Development Ltd. (PSCDL) Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Future of Mobility Confidential : Not to be circulated THE NEW MOBILITY PARADIGM WOULD PRESENT OPPORTUNITIES FOR EXPLORING PARTNERSHIPS AND BUILDING ECOSYSTEMS WITH SYNERGIES ACROSS THE MAHINDRA GROUP OEMS MOBILITY PLAY FINANCING CHARGING STORAGE RESALE TECHNOLOGY M&M SSMS Lease vehicle / Charge from 2nd life reuse in battery (energy- Grid-scale solar stationary as-a-service) Energy Storage EV resale Shared mobility NEW MOBILITY PARADIGM applications with EVs EV OEMs in mass, premium IT platform, segment Clean Connected Convenient Mobility platform 16 Copyright © 2019 Mahindra Electric. All rights reserved. Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved. Confidential : Not to be circulated Thank you Copyright © 2019 Mahindra & Mahindra Ltd. All rights reserved..