- Project Background
- Executive Summary
- Insights Deep-Dive
- Entry Mode Recommendation
- Go-To-Market (GTM) Strategy
- Exit Strategy
- Recommendations
- Risk & Exit Planning
- Clarifying Questions, Assumptions, and Caveats
India's electric vehicle (EV) market is expected to grow at a compound annual growth rate (CAGR) of 33.25% between 2024 and 2032, driven by growing environmental consciousness and increasing affordability through government subsidies. With two-wheelers dominating over 70% of vehicles in India, E-Ventura seeks to establish a stronghold in the electric scooter market by leveraging its expertise in sustainable mobility solutions.
E-Ventura’s market entry strategy aims to establish the company as a key player in India’s rapidly growing electric two-wheeler (E2W) scooter market. The Indian E2W market, valued at $950.4 million in 2023, is projected to grow at a CAGR of 33.25%, reaching $12,586.69 million by 2032. With scooters dominating the market, particularly in affordable and premium segments, E-Ventura’s Edge (premium) and Flex (mid-range) scooters are well-positioned to capture significant market share. The strategy addresses key consumer pain points, including inadequate charging infrastructure, affordability, and safety. A phased Go-To-Market (GTM) approach includes pre-launch activities like pilot programmes, digital advertising, and partnerships, followed by a launch strategy featuring direct-to-consumer sales, dealership networks, and flagship stores. Post-launch efforts will focus on scaling operations, expanding into Tier-2/3 cities, and introducing subscription services to boost customer retention. The project aims to achieve a 2% market share within the first year, with a total project NPV of ₹183 million and an IRR of 33%. However, it is recommended that E-Ventura targets a market penetration of 2-7% for long-term profitability. Prioritising partnerships with charging providers, launching financing options, and expanding dealership networks are critical to success. Regional marketing campaigns and sustainability-focused initiatives will further enhance brand positioning and consumer trust.
- India’s electric two-wheeler (E2W) market is projected to grow from $950.4M in 2023 to $12.6B by 2032 at a 33.25% CAGR.
- E2Ws are expected to constitute 60-70% of scooter sales by 2030, driven by government incentives like GST reductions and subsidies.
- 86% of buyers consider E2Ws due to lower operational costs.
- Key purchasing factors: Affordability, safety, range, battery life, and charging speed.
- Key challenges: Range anxiety, limited charging infrastructure, and high battery replacement costs.
- Dominated by Ola (31.1% market share), TVS (27.87%), and Bajaj (19.6%).
- Ola’s competitive edge: 115 km/charge range, D2C model, and aggressive pricing.
- Differentiation opportunities: Affordable scooters with 80-120 km range.
- Premium product ranks 4th; mid-range product ranks 8th in the competitive landscape, highlighting strong positioning based on price and features.
- Capturing a 2% SOM yields an NPV of ₹183M, 33% IRR, and cost recovery within 3.92 years.
- Achieving 2-7% SOM ensures long-term scalability through localisation and differentiation.
- A wholly owned subsidiary is preferred to retain total control and strengthen branding.
- Pre-Launch (4-6 months): Build brand awareness and trust.
- Launch (3 months): Expand sales via multichannel availability.
- Post-Launch (6-12 months): Scale operations, enhance loyalty, and optimise channels based on performance.
- If goals are not met within 5 years, explore divestment, partnerships, or gradual market withdrawal to recover investment.
- Edge (Premium): Fast-charging, IoT features, extended warranty. - Flex (Mid-Range): Competitive pricing with moderate range (~90–100 km/charge).
- Removable batteries with optional swap stations to address range anxiety.
- Position Edge just above current market leaders to justify premium features.
- Price Flex competitively to attract cost-sensitive consumers.
- Collaborate with local banks and fintech firms.
- Leverage government subsidies for reduced EMIs.
- Partner with existing networks (e.g. Tata Power) in top-tier metro areas.
- Offer an in-home charger bundle to simplify adoption.
Pre-Launch (4–6 Months)
- Conduct a pilot in 1–2 major metro cities.
- Run influencer-led digital campaigns to generate buzz. Launch (3 Months)
- Open flagship stores in major cities, showcasing product demos.
- Sign dealership agreements in Tier-2 locations. Post-Launch (6–12 Months)
- Expand into Tier-3 cities.
- Introduce a battery subscription model for recurring revenue.
- Localize key components (battery assembly, chassis) to reduce import fees and boost margins.
- Maintain stable partnerships with a few top-tier suppliers for consistent quality.
- Use local micro-influencers for culturally relevant outreach.
- Promote solar-assisted charging solutions in select regions to enhance green credentials.
- Provide extended warranties, annual free servicing, and digital service scheduling.
- Offer real-time diagnostics and on-demand roadside assistance.
- Track EV incentives (FAME-II) and any shifts in duties or regulations.
- If profitability targets aren’t met within the set timeframe, pursue partnerships or partial divestment to recoup investments.
- What are the primary goals (e.g., market share, brand positioning) that E-Ventura wants to achieve in India?
- Are there budget caps, ROI thresholds, or funding limitations we should be aware of?
- Does the company have any constraints related to battery technology, software, or manufacturing capacity?
- Have we secured preliminary commitments from banks/fintech firms to offer competitive EMIs to prospective buyers?
- What are the projected costs for battery components and other key raw materials, and how do these align with our target product pricing and margin goals?
- Policy Continuity: Stability of FAME-II and PLI incentives for EV manufacturers.
- Economic Growth: Consistent growth of disposable income and demand for mobility.
- Consumer Trends: Continued shift towards electric mobility, driven by lower operational costs.
- 2% Market Penetration within 12 Months of Launch: E-Ventura is assumed to achieve 2% SOM within the first year of launch and maintain a steady 2-7% market share, enabling recovery of initial investment costs and boosting profitability from year 2 onwards.
- Policy Risks: Changes in government subsidies could alter pricing and adoption dynamics.
- Market Variability: Competition and supply chain issues may impact projections.
- Infrastructure Delays: Limited expansion of charging networks could affect penetration rates.