What prospects does the Indian market hold for EVs? A marketing strategy report for Volkswagen EV in India.

1. MARKETING STRATEGY
VOLKSWAGEN EV
das auto.

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CHALLENGES INDUSTRY AND MARKET ANALYSIS CUSTOMER ANALYSIS RECOMMENDATIONS ROADMAP
INITIATIVES TO PROMOTE EV ADOPTION
LOWER TAX
Lower vehicle/road tax
FREE PARKING
Parking lots that offer free
parking
FREE OR DISCOUNTED
ROAD TOLLS AND FERRY
COSTS
EV owners can use most
toll roads and ferry for
free. They will have to pay
a fee in future, but rates
could still be discounted
CHALLENGES AND DRIVERS
REGULATIONS AND INCENTIVES
Incentives to adopt EVs and a supportive
ecosystem that encourages switching to EVs and
establishes regulations on carbon emissions
TECHNOLOGY
High battery prices impact manufacturing and
sales. Improved technology will reduce battery
costs, increase efficiency and improve driving
range
INFRASTRUCTURE
Easy and affordable access to charging
infrastructure, both standard AC charging as
well as rapid DC charging, is a key to meeting
customer needs
CUSTOMER DEMAND
Creating a pull among customers by creating an
economical cost proposition is crucial in
encouraging customers to invest in EVs
SPECIAL TRANSPORT LANES
EVs can enjoy access to dedicated
fast-moving lanes for public transport
FREE BATTERY-CHARGING POINTS
To encourage costumers to buy the EVs without worrying about charging point
related costs
Source: alliedmarketresearch.com

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15%
Vehicles on road
in India by 2025
1%
EV sales from
less than 1% of
total vehicle
sales in India
124%
Sales growth
from FY16-17 to
FY17-18
40%
Drop in sale of
Electric Cars
from FY16-17 to
FY17-18
10L
Andhra Pradesh
government
aims to have 10
lakh EVs on road
by 2023
COMPETITOR ANALYSIS
MARUTI SUZUKI
• This is the most popular car brand in India
and has the most appeal to the middle
class segment due to their pricing and
brand positioning
• Currently testing WagonR EV priced at INR
10L in Gurugram with launch slated for
2020 in collaboration with Toyota
Corporation
MAHINDRA & MAHINDRA
• Mahindra became the first auto maker in India to
invest in electric vehicle technology
• Mahindra’s electric cars include the e20 Plus, a
hatchback, and the Everito, a sedan
• Priced at a range of INR 7.34 L to INR 11.65 L
• Plans to invest around INR 1,000 Cr in Karnataka to
build a facility for the development and
manufacturing of electric vehicles (EVs)
• Mahindra has also announced plans of launched
the e20 Plus on Zoomcar
TATA
• Tata Motors’ EV is the TATA Tigor, produced at
the company's facility at Sanand, Gujarat
• It had initially had been supplied only to the
Energy Efficiency Services Ltd. (EESL), a public
sector unit under the Indian Ministry of Power
• In December 2018, Tata Motors partnered with
self-drive rental company Zoomcar and will be
offering 500 Tata Tigor electric vehicles in Pune
• Zoomcar plans to reach out to 20 cities with
the 500 Tata electric cars by next year
HYUNDAI
• Hyundai is all set to launch its Kona EV in India in
the second half of 2019 priced over INR 20 to 25 L
• Hyundai is planning to launch more EVs in the
country in future with plans to even export some
of the models from here
• They are expected to roll out by 2023, which is
when CAFE (Corporate Average Fuel Economy)
norms will get stricter in India
• The spike in GST rates compelled Hyundai to drop
its plans for hybrid vehicles and shift to electric
ones
Other players like Kia Motors, Nissan, Audi, Toyota, Lexus and BMW have either launched or are planning
to launch Electric and hybrid vehicles targeting the Indian market
CHALLENGES INDUSTRY AND MARKET ANALYSIS CUSTOMER ANALYSIS RECOMMENDATIONS ROADMAP

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LIKELIHOOD OF
CUSTOMERS
CONSIDERING
EVS
PERCEPTUAL MAP
BRAND IDENTITY PRISM
Source: McKinsey Report
• Product spectrum ranges
from bicycles to low-
consumption small cars
and luxury vehicles
• Family oriented
• Personal
anecdotal
experiences
• People’s car
• Suited for everyone
• Concerned about environment
• Mature
• Family-oriented
• Concerned about
environment
• Values
• Safety
• Environmentally
Sound
• Confident
• Stylish
• Safe
CHALLENGES INDUSTRY AND MARKET ANALYSIS CUSTOMER ANALYSIS RECOMMENDATIONS ROADMAP

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VW AS A PLATFORM
• VW is open to licensing its MEB electric car platform to third party manufacturers
to ramp up economies of scale
• The battery pack, for the foreseeable future, will be more expensive than a
combustion powertrain, hence, it makes a lot of sense to make more volume
• Focus management on key decisions at the right time, instead of diluting their
attention across numerous products; because the MEB’s purpose-built design
doesn’t have to accommodate an engine and transmission, it allows for a flat floor
and a roomier-than-normal cabin
• Encourage a long term view of the product strategy – managing the platform
rather than the products
INNOVATION
BREADTH &
COVERAGE
LOWER
CUSTOMER
COSTS
HIGHER
PERFORMANCE
• Flexible and modular
system
• Rolling-chassis
configuration with unique
production methods
• Scalable battery pack
• Roomier cabins
• Slab design for better
stability and handling
• Ease of use
• AI integration potential
• Savings on R&D,
manufacturing and labor
costs
• Easy procurement
• Transfer of cost advantage
from VW in terms of
lower prices
• Platform that spans
price and performance
space
• Ability to expand the
platform for Sedans
PRODUCT PLATFORM – VECTOR OF DIFFERENTIATION
Matrix of
common parts
Variable battery capacity
Increases
amount of space
in the interior
Electrical range starting roughly at 200 mile and
high performance charging (80% in 30 minutes)
CHALLENGES INDUSTRY AND MARKET ANALYSIS CUSTOMER ANALYSIS RECOMMENDATIONS ROADMAP

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• VW should streamline its focus to innovate and build its EV
modular platform (MEB) as currently the trusted Indian
players are acting as a barrier to entry for VW aided with
its negative publicity which degraded the co sales in the
recent past
• MEB can provide altogether an untapped market segment
enabling it to scale up its top line
• Buy more time for market image upliftment and to revamp
its product features and folio to match Indian Customer
needs
Promotional Methods
2019-21 2025-27
2022-24
CHALLENGES INDUSTRY AND MARKET ANALYSIS CUSTOMER ANALYSIS RECOMMENDATIONS ROADMAP
Creating an entire VW electric ecosystem
After introducing the models in the EV segment the
company should focus on building an VW electric
Ecosystem in order in order to provide the
customer a one stop shop for their electric
vehicles.
Other development points include:
• Indigenous battery manufacturing
• Refueling Stations
• Social Communities
• Given the Novelty driven nature of Indian Customer and their
inclination towards low maintenance vehicles, VW should focus
on providing innovative designs with cutting edge technology and
high after sales services providing convenience on the
maintenance front to the customer (reason for the leadership of
Maruti in the market)
Promotional Methods
• Leveraging their F1 brand endorsement channel VW can
introduce their F1 car to run in the circuits with an exclusive
featuring of their new models in the various promo events in F1.
• Coming up with a advertising campaign in which VW is featured
as a brand focused at “innovation with sustainability”-
communicating both the attribute based and environment based
image of the brand
• Highlighting the success of their platform with the added VW
luxury in the interiors to provide a class customer experience
from an indigenous VW product.
• Once the company has achieved economies and learning
benefits from its platform business & established itself among
the OEM segment it can then come up with its full fledged
model in the EV segment (R&D of which was in place in the
meanwhile), as then it can bank upon its expertise in the
segment as the existing players are using their core structure
• Since F1 racing has
gone electric, F1
sponsorship by VW will
give exclusive coverage
to their EV platform
featuring “F1 is driven
by VW.”
• Feature its MEB
concept in prominent
‘Auto Expos’ in the key
metro cities to gain
• Publishing their concept in ‘Top Gear’ and ‘Auto Car’ –two
most prominent automotive magazines featured in India
detailing the potential benefits to the OEM buyers in
implementing this in their manufacturing process.
• For the mainstream petrol and diesel vehicles VW have to
undergo a repositioning exercise by attaching to the hot cause
of environmental friendly vehicles
visibility among the biggies in automotive OEM segment.

7. THANK YOU
TEAM BLADE RUNNERS
NMIMS BANGALORE