Automobile and Auto components - Government of Gujarat - Manufacturing of Electric Vehicles - iNDEXTb
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Manufacturing of Electric Vehicles (Two Wheelers/Three Wheelers/Passenger Cars) Automobile and Auto components Government of Gujarat
Contents
Project Concept 3
Market Potential 4
Growth Drivers 7
Gujarat – Competitive Advantage 8
Project Information 10
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential collaboration opportunities
Project Financials 14
Approvals & Incentives 16
Page 2Project Concept
Project Overview
The proposed unit involves manufacturing of electric vehicles (AC-induction motor based) in
Sanand, Gujarat. The estimated project cost of the proposed unit is INR 1 billion including land,
plant and machinery cost. The demand for such a facility is justified taking into consideration that,
Less than 500,000 electric vehicles (EVs) presently exist in India.
More than 95% of electric vehicles are low speed electric scooters that do not require insurance,
license or road tax. India is set to become the 3rd largest automotive market by 2020 and currently
has one of the lowest vehicle penetration in the world making it a viable market for EVMs.
Indian Auto Industry Overview
Auto and auto components industry in India is growing and maturing at a fast pace in terms of
size, model variants and technological advancements in new cars. Some of the factors attributable
to this growth include a buoyant end-user market, improved consumer sentiment and return of
adequate liquidity in the financial system.
The Indian auto-components industry can be classified into - organised and unorganised sectors.
The organised sector caters to the Original Equipment Manufacturers (OEMs) and consists of
high-value precision instruments, while the unorganised sector comprises low-valued products and
caters mostly to the aftermarket category.
Indian Auto and Auto Components Industry Classification
Automobile
Commercial
Passenger cars Two-wheeler Three-wheeler
vehicles (CV)
Commercial
Cars Motorcycles Light CVs
purpose
Passenger Medium and
Utility vehicles Scooters
carrier heavy CVs
Multi Purpose Mining
Mopeds equipment
vehicles
and
Auto components earth movers
Suspension
Lighting and
Engine and Powertrain and
other Accessories Others
engine parts parts braking
equipment
parts
Sources:http://www.ibef.org/industry/autocomponents-india.aspx
Page 3Market Potential
Electric vehicles (EV) industry is at a nascent stage in India, comprising less
than 1% of the total vehicle sales, however it has the potential to grow
significantly in the coming years. Electric vehicle sales are expected to grow
at high double digit growth rates annually till 2020
Battery Electric Vehicles
10,000
Hybrid EV
45,000 42,482
9,000 8,601
40,000 35,994
8,000 7,379 35,000
6,778
7,000
30,000 27,543
6,000 5,519
25,000
units
5,000
3,845 20,000 18,154
4,000
3,056
15,000
3,000 10,033
2,000 10,000 6,088 6,986
723 5,000
1,000
0 0
2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020
Share of electric vehicles in EV sales split by type (2014)
total light duty vehicle sales
EV sales split by EV sales split by
type (2014) type (2020)
89% 74%
2014 2020
0.3% 1.5%
15%
11% 11%
0%
HEVs BEVs PHEVs HEVs BEVs PHEVs
Page 4Market Potential
Currently, only Mahindra and Mahindra (M&M) and Toyota offer electric/hybrid
4-wheelers in the country, with several players having plans of launching new
products
4 wheelers 2 wheelers
► History: Founded in 1994 as the
Reva Electric Car Company in ►Market Potential
Key characteristics of the Indian Electric vehicles’ industry
► Less than 500,000 electric vehicles (EVs)
presently exist in India.
Indian EV
market ► More than 95% of electric vehicles are
dominated by low speed electric scooters that do not
two require insurance, license or road tax.
wheelers; ► All electric two wheelers currently operate
regulation on using lead-acid batteries
e-rickshaws
to boost ► The government is in the process of
sales regulating e-rickshaws that has resulted
in interest from many EV manufacturers
to launch electric three-wheelers
► Mahindra Reva is the only company that
currently offers Electric vehicle and its
Currently current model e2o uses Li-ion batteries
only one
model of ► Demand for Reva in India has largely
Battery been stagnant — with less than 500 cars
electric 4 sold in a year.
wheeler on ► Demand for hybrids is also low primarily
sale in India due to lack of available models (currently
only Toyota sells hybrid models, Prius and
Camry)
► Government incentives widely influence the
Sales of electric vehicle sales
electric
vehicles ► As a result of government’s incentive in
largely FY11, electric vehicle sales (including two
dependent wheelers) registered a growth of 30% on a
upon y-o-y basis.
government ► A withdrawal of the subsidy scheme led to a
incentives 50% drop in electric vehicles sales
Page 6Growth Drivers
Demographic Low
potential manufacturing
and operational
Rising energy costs
demand
► India projected to
add 352 million
people by 2035 ► Energy demand
► India has the expected to rise ► Lower labor costs
lowest median 70% in the next and large pool of
age of 28 and decade engineers to favor
rising individual EV manufacturing
► The percentage of
wealth imported oil to ► Electric vehicles
reach 92% by also have lower
2020 lifecycle costs
► A need to lower
CO2 emissions to
drive demand
Large domestic Government
market for focus on
automobiles promoting EVs
Congestion and
driving patterns
► National Electric
► India to become Mobility Mission
the 3rd largest Plan 2020
automotive market ► Indian drivers provides the
by 2020 have to drive at roadmap for
► It currently has low speeds, make achieving
one of the lowest frequent stops and significant
vehicle have short penetration of
penetration in the commutes electric vehicles in
world ► Indian EVs can be India by 2020
designed for
shorter range and
lower speeds
Exchange rate used: USD/INR: 64.0240 (2015 calendar year average)
Page 7Gujarat - Competitive
Advantage
Auto Cluster in the State
Particular Symbol
Existing Auto Clusters
Emerging Auto Clusters
in SIRs by 2015
Emerging Auto Clusters
in SIRs by 2020
Special Investment Region (SIR)
Large auto clusters being developed
near Rajkot and Ahmedabad
500+ auto 4–6 emerging 2–3 emerging
component Auto clusters will be
developed near
Auto clusters will be
developed near Rajkot
manufacturers in the Ahmedabad
Rajkot district
► Gujarat is emerging as a key investment destination for the major auto players. The state is set
to become the country's automotive hub within the next few years.
► Gujarat government plans to increase the share of automotive industries in its overall
engineering output to 10% by 2020, from the current 3.7%.
► Gujarat expects to surpass the production capacity of top car manufacturing states like
Haryana, Maharashtra and Tamil Nadu, with an installed capacity to roll out 1 million units
annually within the next 3-4 years.
► Incremental manpower requirement in Gujarat for the manufacturing of engineering goods is
expected to be 53,580 during 2017-22.
Sources:
“Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014
“Gujarat – Growth and Prosperity for All”, Vibrant Gujarat website, 25 August 2014
Page 8Gujarat - Competitive
Advantage
Skill development and training in auto sector is a focus area for
Gujarat government
Gujarat is a hub of The government has already
engineering industry, with Manufacturing Government established
the manufacturing and and engineering focus to multiple CoEs (including one
engineering sector in sector growth develop CoEs on Industrial automation
Gujarat contributing over in Mehsana itself) and is in
27% to the state’s GSDP process of establishing more
and contributing 9% across the state.
overall to the national
engineering output.
The Gujarat government Gujarat has a strong
Favorable labor Well-developed
has recently passed the educational infrastructure in
policy skill
Labour Laws Bill development automobile sector with 27
(December 2015), to give industry colleges providing technical
an impetus to education in the sector with
industrialization in the annual intake capacity of
State. 1,980, and additionally 111
colleges provide technical
education in mechanical field.
In addition to the Gujarat is relatively less
Financial Better social
national level incentives, incentives infrastructure congested and polluted
the Gujarat government offering better standards of
is providing financial living to the inhabitants.
incentive for setting up of
CoEs for the
manufacturing sector.
Sources:
http://www.narendramodi.in/maruti-to-invest-rs-4000-crore-at-bechraji-agreement-signed-with-gujarat-govt-4536
http://www.thehindu.com/news/national/gujarats-controversial-labour-laws-bill-gets-presidential-assent/article7938265.ece
http://www.vibrantgujarat.com/writereaddata/images/pdf/Skill-Ecosystem-Updated.pdf
http://www.business-standard.com/article/economy-policy/gujarat-govt-plans-incentive-scheme-to-boost-manufacturing-sector-
113022500549_1.htmls
Page 9Project Information
Project at a Glance
Project Name Automobile manufacturing (OEM)
Location Sanand, Gujarat
Area 2000 ha
Engineering, Automobiles and ancillary
Focus Sector units, Engineering plastics,
Semiconductors, Electronics
Target Audience Tata, Ford, Bosch, Valeo, JBM, Visteon, Magna,
Project site – Sanand (Gujarat)
13.5 KL water/ha area
12+ auto ancillary units to
be setup
300 vendors expected to
setup
► Sanand, Gujarat is an indicative location for establishment of Electric Vehicle
Manufacturing plant. Alternatively, the plant can be set up in any other suitable location in
Gujarat.
► 66 KV Vendor Park and 66 KV Chharodi substations are located approx. 4 km away from
the boundary of the estate
► A 400/220/66KV substation is planned within the Sanand Estate to be operational in 2-3
years
► For solid waste – two disposal facilities are available, Naroda & Vatva. The company has to
transport their solid waste to these sites themselves. The sites are around 50 km form
Sanand
► Gujarat State Petronet Ltd. would supply gas in the estate till the door step
► Port Connectivity is available with three ports – Kandla, Mundra & Pipavav
► Sanand has the advantage of a Broad Gauge (BG) railway network and NH–8A which
connects Ahmedabad to Saurashtra and Kutch passes through Sanand
► Ahmedabad International Airport is the nearest airport located at a distance of 30 kms from
Sanand
Page 10Project Information
Sanand is well-connected with other districts in Gujarat as well as
other cities in India
► Sanand has the advantage of a Broad Gauge railway network
► The nearest railway station is at Ahmedabad at a distance of 40 km from the
Sanand.
► National Highways: NH–8A, which connects Ahmedabad to Saurashtra and Kutch,
passes through Sanand.
► State Highways: SH–17 connects Ahmedabad to Sanand and joins NH – 8A leading
to Kutch. SH-144, SH-135 and SH – 74 are the other important linkages within
Sanand.
► Port Connectivity is available with three ports – Kandla, Mundra & Pipavav.
► Mundra port is linked by NH – 8A and lies at a distance of about 400 kms from
Sanand.
► Ahmedabad International Airport is the nearest airport located at a distance of 30
kms from Sanand .
► There are domestic airports located in Baroda and Surat.
The State Government ensures robust physical/industrial
infrastructure & utility linkages
► Gujarat boasts of 24 hour – 3 - phase uninterrupted power supply
► Gujarat has a state-wide “water supply grid” spread across 1,20,769 km that aims to
serve 75% of Gujarat’s population.
► Gujarat Industrial Development Corporation (GIDC) is responsible for ensuring
consistent water supply in industrial areas
► Two disposal facilities are available, Naroda & Vatva, are available for solid waste.
The sites are around 50 km form Sanand
Sources:
http://www.mapsofindia.com/maps/gujarat/districts/mehsana.htm
http://www.nsdcindia.org/sites/default/files/files/gujarat-sg-report.pdf
Page 11Project Information
Category Machinery / Equipment suppliers
Engine and Gear Boxes Bharath Forge Amalgamation Group Rane Group
Axels JBM Axles India Amtek
Tata autocomp
Door panels Dow Automotive JBM
systems limited
Exhaust systems Faurecia Autoflex Emcon technologies
Heating, Ventilating, Air-
Denso Sanden Subros
conditioning and Cooling
Seats Lear Johnson controls Netplast
Tata autocomp
Battery Minda battery N/A
battery
Tires Apollo Bridgestone MRF
Horn Hella Denso Minda
Tata autocomp
systems limited -
Dashboard IAC Hyundai Mobis
interiors and plastics
division
Tata yazaki
Wiring Harness Delphi MothersonSumi
autocomp
Page 12Key Considerations
Key Issues in the Indian Electric Vehicle market
No formal charging Power outages and
infrastructure exists blackouts are
except for about 250 common in India
charging stations built Unreliable Currently India has
by Mahindra Reva Practically an average power
electrical
Most vehicles use non-existent deficit of 8%-10%
supply
standard 15-amp infrastructure and is highly
sockets to recharge dependent upon coal
Government’
According to
s subsidy
government
program in
surveys, most 2010 was
consumers are
Lack of poorly funded
unaware of
consumer Erratic and was
electric
awareness government aborted soon
vehicles
and price support later
Most
sensitivity Government’
consumers s current plan
have concerns
has also
over range,
witnessed
poor battery life
long delays
and high initial
price High reliance
on imported
components
from China
Due to low domestic expertise, a large number of
components for EV especially batteries are
imported from China, which are often of low
quality
Key considerations
► Low energy costs in order to remain competitive ► A higher degree of technical skill for
► Uninterrupted Power supply assembling and testing
► Reduction in Startup and Operating Wastages ► Decline in the lithium ion battery price
► Technology transfers are one of the key factors ► Expected rising demand due to stringent
that have driven the government’s promotion of emission standards
FDI ► Strong government focus and support
Page 13Project Financials
~INR224 Target
billion 6-7 million electric
INR140 billion
Total vehicles on road
Investment from the government,
investment by 2020
while balance to come from the
required in the Save 2.2-2.5
industry
Indian EV million tonnes of
market fuel
► Government expected to
provide incentives to cover
~INR122-138 35% of the cost differential
Demand incentives billion between electric vehicles
Primary investment areas outlined in NEMMP 2020
and conventional vehicles
Research and ~INR15-18 ► Investment in the form of
billion setting up of testing and
development R&D infrastructure
► Most investments expected
Infrastructure from industry
related Pilot projects ► Government investment for
investments pilot projects for charging
infrastructure
► The creation of local
manufacturing eco-system
Localization boosted through firm
Supply incentives conditions localization commitments
that will be pre-conditions
for demand incentives
Page 14Project Financials
Estimated Project Cost
► Project cost: The estimated project cost is INR 1 Billion
► The proposed unit will be manufacturing AC-induction motor based electric vehicle where the
major components of the motor include. The case study of the Mahindra Reva Electric Vehicles
plant in Bangalore, Karnataka has been considered to arrive at a ball park figure of the total
project cost of the proposed unit.
S. No Cost parameters Cost (INR billion)
1 Land in Acre 0.367
Average land price in Sanand** per sq feet as per JLL
2 375
(INR hundred)
3 Total land cost (INR billion) (Area X average land price) 0.6
4 Total investment including land (INR billion) 1
Investments on plant, machinery, building, civil work etc
5 0.40
(Total investment – land cost) (INR billion)
6 Shift operation Single Shift operation
7 Capacity (units/annum) 30,000
► Typical Electric Vehicles use many of the same type of systems and components as a CV,
especially in the body and chassis. However, the powertrain of an EV is completely different, and
its energy storage (replacing fuel tank) becomes a major sub-system.
► Absence of a continuously running engine affects such accessory systems as heating,
ventilation, and air-conditioning (HVAC), steering, and brakes and consequently requires
independent (electric motor) drives for them.
** Assuming the land is purchased, not rented (in Sanand)
Sources: http://www.business-standard.com/article/companies/mahindra-reva-opens-new-car-making-unit-112082300035_1.html
Page 15Approvals & Incentives
Aiming to reduce pollution, the Government announced a series of cesses under
the Union Budget 2016–17 to discourage the purchase of conventional fuel
vehicles and to promote hybrids/EVs
Infrastructure cess Allocation of funds Extension of fiscal sops
exemption to under the FAME for EV/hybrid
hybrid/EVs The government proposed the technology
The government proposed an allocation of RS200 crore funds Extended the validity period of
infrastructure cess, under the FAME concession on customs and excise
• The funds would be primarily duty on select parts used in the
• 1% on small petrol, LPG, CNG manufacture of Electric and hybrid
cars used for incentivising the
purchase of hybrids/EVs vehicles
• 2.5% on diesel cars of certain
capacity vehicles • Whereas, 20-25% would be used
for building the technology and
• 4% on other higher engine infrastructure
capacity vehicles and SUVs
• About 10% would be spent on
pilot project
Potential impact on the industry
The hybrid/EV market is at a The hybrid/EV market has It is expected by 2021,
nascent stage in India, picked up since last year with domestic and global OEMs
however, through government OEMs such as Maruti and could launch more than 25 EV
support and policies it is slowly Mahindra focusing on hybrid models
creating opportunities marques
Sources:
National incentives
http://www.nsdcindia.org/csec/wp-content/uploads/2016/01/CSEC-Brochure.pdf
State incentives
http://electronicsb2b.efytimes.com/gujarat-governments-five-incentive-schemes-for-manufacturing-sector/
Page 16Approvals & Incentives
Scheme launch and
industry reaction
Budget
► Scheme effective from 1 allocation for the
April 2015, as a result, INR7.95
scheme in the
automakers have billion
first two fiscal
reduced prices years
► Automakers call the
scheme a welcome
move, but argue that a
lot more needs to be
done. For eg. States
need to reduce multiple
Initial outlay for
taxes levied on electric
vehicles INR 0.75 the scheme
billion already
approved in this
Scheme timelines Focus areas and year’s budget
and incentives scheme review
► To be ► Focus areas:
implemented Technology
over a period of development,
six years, till demand
2020 creation, pilot
► Phase-1 to be projects and
implemented charging INR13,0 Per unit
over FY15-17 infrastructure 00 to incentive for
► Lower cost of ► Scheme to be 138,000 four wheelers
electric and reviewed after sold under the
hybrid vehicles March 31, scheme
for customers, 2017
manufacturers
to claim the
incentive from
government
Per unit
INR1,80 incentive for two
0 to wheelers sold
FAME* India
29,000 under the
* Faster Adoption and Manufacturing of Electric vehicles scheme
Sources:
National incentives
http://www.nsdcindia.org/csec/wp-content/uploads/2016/01/CSEC-Brochure.pdf
State incentives
http://electronicsb2b.efytimes.com/gujarat-governments-five-incentive-schemes-for-manufacturing-sector/
Page 17Approvals & Incentives
Concessional excise
Exemption from Basic duty of 6% extended
Concession/Exemption of Customs Duty (BCD) to March 2015 for
duties for EV automotive for manufacturers of manufacturers of
battery/parts suppliers lithium ion automotive batteries supplying to
battery packs producers of electric
vehicles
A weighted tax
200% weighted tax
deduction of 200% for
deduction for sums
both capital and
Accelerated tax paid to national
revenue expenditure
deduction to promote laboratory, institute of
incurred on scientific
R&D in the industry technology for
research and
scientific research
development.
Delhi Rajansthan,
► 15% direct subsidy Uttarakhand,
Specific state
► 0% VAT (value Chhatisgarh
government incentives in
added tax) ► 0% VAT (value
form of tax rebates and
► 50% rebate in added tax)
direct subsidies
registration tax
Last mile Pilot
Electric
connectivit electric
Government pilot bus pilot
y to Delhi two-
projects to promote project in
Metro rail wheeler
investment in the state of
passenger project in
infrastructure Gujrat
s Goa
Sources:
National incentives
http://www.nsdcindia.org/csec/wp-content/uploads/2016/01/CSEC-Brochure.pdf
State incentives
http://electronicsb2b.efytimes.com/gujarat-governments-five-incentive-schemes-for-manufacturing-sector/
Page 18Approvals & Incentives
Gujarat Industrial Policy 2015
Government of Gujarat has announced an ambitious Industrial Policy, in January 2015, with the
objective of creating a healthy and conducive climate for conducting business and augmenting the
industrial development of the state.
Quantum of incentives
The incentives under this policy will be available to all the Talukas listed in Government Resolution
dated 25/7/2016 except municipal corporation areas.
% of eligible fixed
Category of % of Net VAT % of Net VAT to be
capital investment Incentive period
Project Location reimbursement to paid to
entitled for (no. of years)
(Taluka) the unit Government
Incentive
1 100 90 10 10
2 80 80 20 10
3 70 70 30 10
Net VAT incentives
Net VAT incentive will be reimbursed to the industrial undertaking in one financial year will not
exceed one-tenth of the total amount of eligible incentive.
Classification of the Project Amount (in INR billion)
Ultra Mega Industrial Unit 5
Mega lndustrial Unit 4
Large Industrial Unit 1.5
Micro, Small or Medium Industrial Unit 0.5
Page 19Approvals and
Incentives
Indicative List of Approvals
Approvals/clearance required Department to be approached and consulted
Incorporation of company Registrar of companies
Registration/Industrial license Secretariat if industrial assistance (SIA) for large and
medium scale industries
Allotment of land State industrial development corporation
No objection certificate (NOC) under State pollution control board
air and water pollution control acts
Approval of construction and country ► Town and country planning
planning ► Municipal and local authorities
► Chief inspector of factories
► Pollution control board
► Electricity board
Use and storage of explosives Chief controller of explosives
Finance For loans higher than INR 1.5 crore, all India financial
institutions like Industrial Development Bank of India(IDBI),
Industrial Credit and Investment Corporation of India(ICICI),
Industrial Finance Corporation of India(IFCI) etc.
Registration under state sales tax act ► Sales tax department
and Central and State excise act ► Central and state excise department
Code number for export and import Regional office of director general of foreign trade
Environmental clearance Ministry of environment, forest and climate change after
conducting environment impact assessment (EIA) for any
project
Hazardous waste import and export Ministry of environment, forest and climate change
approval
Industrial license for defense setting District Industries Centres (DICs), DIC will forward the
up defence manufacturing unit proposal to Industries Commissioner who will submit the
report to State Level Approver Committee (SLAC) for final
approval
Exiting business Ministry of corporate affairs
GoG has introduced single window facilitation portal for investors with undermentioned benefits:
► Centralized system to monitor applications
► User friendly and simplified application process for investors
► System for authorities and investors to check the status of applications
► Increased departmental ownership
► The unit shall be facilitated through ‘Investor Facilitation Portal’ for obtaining all the
necessary state approvals/ clearances - https://www.ifpgujarat.gov.in
Page 20Society of Indian Automobile Manufacturers (SIAM)
www.siamindia.com
Automotive Component Manufacturers
http://www.acma.in/index.php
Gujarat Industrial Development Corporation
www.gidc.gov.in
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
Industries Commissionerate
Block No. 1, Udyog Bhavan
Sector 11, Gandhinagar – 382 017
Gujarat, INDIA
Ph.: 91-79-23252683, 23252617
Fax : 91(79)232 52683
Email ID: comind@gujarat.gov.in
Website : www.ic.gujarat.gov.inYou can also read
