PROJECT ON REVOLUTION OF

ELECTRIC VEHICLES IN
AUTOMOBILE INDUSTRY

- P R A NAY
SHANKAR SINGH
(240101115)
CONTENT
1. INTRODUCTION

2. INTENSITY OF INDUSTRY RIVALTRY

3. TRAITS OF ENTREPRENUER

4. CONCLUSION

2
INTRODUCTION
The Indian Electric Vehicle (EV) industry is
experiencing rapid growth, with the market
expected to reach USD 7.09 billion by 2025,
driven by government initiatives like FAME II
and PLI schemes, along with major
investments from companies like Tata Motors,
Mahindra, and Ola Electric. The sector's
development encompasses various segments
including two-wheelers, three-wheelers, and
passenger cars, with a growing focus on
charging infrastructure, battery manufacturing,
and localization of components. The industry
aims to achieve 30% EV penetration by 2030,
supported by state and central government
incentives, while addressing challenges like
high initial costs and charging infrastructure
gaps through technological advancements
and increasing consumer acceptance.
 GROWTH OF EV
INDUSTRY IN INDIA
MARKET EXPANSION AND SIZE
The Indian EV market is experiencing exponential growth, projected to reach USD 7.09
billion by 2025 with a CAGR of 43%. Two-wheelers dominate with 80% market share,
followed by passenger vehicles and commercial vehicles, while domestic manufacturers
like Tata Motors and Ola Electric lead market penetration. The industry has attracted over
USD 6 billion in investments since 2019, with significant funding in startups and
manufacturing facilities.

GOVERNMENT SUPPORT AND POLICIES

The FAME II scheme with an outlay of Rs 10,000 crore provides incentives for EV purchase
and charging infrastructure development. Various state governments have introduced EV
policies offering additional subsidies, tax benefits, and infrastructure support. The
Production Linked Incentive (PLI) scheme allocates Rs 25,938 crore to boost domestic
manufacturing and attract investments.

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Infrastructure Development I
India's charging infrastructure is rapidly expanding with over 2,500 public charging stations
installed across major cities. Government initiatives aim to establish one charging station every 3
km in cities and every 25 km on highways. Private players and PSUs are investing heavily in
charging networks, with plans to install 400,000 charging stations by 2026.

Technology and Innovation

Battery technology is advancing with focus on reducing costs and improving efficiency through
local manufacturing and R&D. Companies are investing in advanced features like smart
connectivity, improved range, and fast charging capabilities. Indigenous technology
development is increasing with partnerships between automotive companies and tech startups.

Consumer Adoption Trends

Rising fuel prices and environmental awareness are driving consumer shift towards EVs,
particularly in urban areas. Total cost of ownership benefits and improving vehicle range are key
factors in adoption growth. The market is seeing increased demand across segments, with
electric two-wheelers leading consumer acceptance followed by three-wheelers and passenger
vehicles.
 I N T E N S I T Y O F I N D U S T R Y R I VA L R Y

Number Of Competitors
The electric vehicle (EV) industry is highly competitive and
rapidly expanding, with a diverse range of players.
Traditional automakers like Tesla, Ford, General Motors,
Volkswagen, Toyota, Nissan, and BMW are all heavily
investing in EVs to transition from conventional vehicles to
electric alternatives. Alongside these established brands
are pure EV companies such as Rivian, NIO, Lucid Motors,
Fisker Inc., and Xpeng, which focus exclusively on electric
vehicles. China is also a significant force in the EV market,
with numerous startups like BYD, Li Auto, NIO, and Xpeng
that compete both domestically and globally. Adding to
the competition are technology companies like Apple and
Alphabet, whose autonomous EV projects indicate
potential future competition. Beyond these major players,
there are also countless smaller startups and emerging
companies worldwide that are developing niche products
and innovative technologies.

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 I N T E N S I T Y O F I N D U S T R Y R I VA L R Y

Market Share

The global electric vehicle (EV) industry has grown

significantly, with major players from various regions
capturing key portions of the market. Tesla remains the
leader, especially in the U.S., with a strong brand and high
sales volumes, followed by traditional automakers like
Volkswagen and BYD—both of which are expanding their
EV lines rapidly. China is the largest EV market, with
companies like BYD, NIO, and Xpeng holding substantial
domestic shares, aided by strong government support. In
Europe, Volkswagen and Renault dominate, with incentives
driving adoption. Meanwhile, Tata Motors leads in India’s
EV car segment, and Hero Electric and Ola Electric excel in
two-wheelers. Overall, market share is dynamic, with Asia-
Pacific leading in production and adoption, followed by
strong growth in Europe and North America.

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T H R E AT S O F P O T E N T I A L
ENTRANTS
The global electric vehicle (EV) industry has grown significantly, with major players from various regions capturing key portions of the market. Tesla
remains the leader, especially in the U.S., with a strong brand and high sales volumes, followed by traditional automakers like Volkswagen and BYD—
both of which are expanding their EV lines rapidly. China is the largest EV market, with companies like BYD NIO, and Xpeng holding substantial
domestic shares, aided by strong government support. In Europe, Volkswagen and Renault dominate, with incentives driving adoption. Meanwhile,
Tata Motors leads in India’s EV car segment, and Hero Electric and Ola Electric excel in two-wheelers. Overall, market share is dynamic, with Asia-
Pacific leading in production and adoption, followed by strong growth in Europe and North America.

1.Capital Requirements:
Besides these, sinking costs in research and development along with manufacturing facilities and technology infrastructure are enormous;
investment often runs into billions of dollars, requiring huge capital outlays. Besides, continuous investments in supply chain development, battery
technology, and charging infrastructure pose tough financial barriers that keep many aspirants away from entering the market.

2 .Technology Innovation:
Specific challenges for new entrants therefore arise in developing or acquiring cutting-edge EV technology, in particular, for the spheres of battery
efficiency, autonomous driving, and connected cars. The imperative to innovate constantly, keeping up with rapid technological change, requires
significant, ongoing R&D investments and access to specialized technical skills.

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3.Brand Recognition and Distribution: TF
Established brand credibility and consumer trust always presents a challenge for new entrants in any market, and the market of well-established
automotive players like Tesla, Toyota, and Volkswagen is especially challenging. An effective distribution network-including dealerships, service
centers, and charging stations-takes much time and resources when competing against the established infrastructure of incumbents.

4.Regulatory Compliance and Supply Chain:

New entrants have encountered stringent regulatory compliance regarding safety standards, emissions regulations, as well as manufacturing
certifications in different markets. Also, accessing reliable supply chains for critical component parts such as semiconductor and battery materials is
challenging because the established manufacturers compete fiercely for the available resources.

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BARRIERS TO ENTRY
CAPITAL INTENSITY: Entry into the EV segment requires significant amounts of initial capital, between $2-5 billion in setting up the
manufacturing facilities, R&D centers and acquiring critical patents for technology. There would also be additional capital requirements in
terms of tooling and testing facilities and building a great supply chain network, while sustained losses in early years make access to funding
more challenging for new entrants.

ECONOMIES OF SCALE: Recent entrants face added problems in achieving cost structures competitive to those of the
established players, as the requisite production volumes to realize significant economies of scale on unit costs are lacking.
Because they cannot apply adequate scale for cost savings on purchasing or production, their vehicles are more expensive
to produce and also cannot be priced competitively in large part.

INTELLECTUAL PROPERTY RIGHTS: The EV industry is very much protected by patents and proprietary technology,
especially in battery technology, power electronics, and autonomous driving systems. New players have to either spend
heavily to develop their own technology or pay serious licensing fees to already existing patent owners that build
significant cost and technical barriers.

GOVERNMENT REGULATION AND COMPLIANCE: Stringent safety standards, emission norms, and manufacturing certification will
be accompanied by stringent testing and documentation processes that take considerable time and cost to market. Requirements
for homologation are a bit complex when operating in a variety of markets; in addition, differences in government policies and
accepted standards will add further compliance efforts for new manufacturers.efforts.

10
 BARGAINING
POWER OF
SUPPLIER
1. Component Concentration: CATL and LG Chem have high market shares
in core battery production, and producers of semiconductors maintain
high bargaining power since both face restricted economies of scale and
expertise-specific capacity.

2. Raw Material Control: There are very few suppliers of core materials like
lithium, cobalt, and nickel, and suppliers are geographically
concentrated-particularly in China, so producers of core raw materials
enjoy significant pricing power.

3. Switching Costs: High technical demands and long qualification

processes make switching over suppliers expensive and time-consuming,
which also has an effect of building good relations with suppliers.

4. Technological dependency: The companies holding key positions

possess certain negotiating authority against the manufacturers of EV as
they possess proprietary know-how and patents in the field of battery
technology along with electronics.

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 BARGAINING
POWER OF
BUYER
Price Sensitivity: Individual Customers High inductive costs with no
negotiating powers, though government incentives impact them. Fleet
customers and Corporate Customers Strong negotiating powers because of
their volume acquisitions.

Product Variety: Easy access to varied EV models from different companies

increases the option to buy and compare. More options at varying prices and
features between brands would increase the option to avail of, thereby
increasing negotiating powers.

Switching Costs: Less charging infrastructure and brand-specific service

networks form moderate switching costs for buyers. Loyalty programs and
value-added features through connected cars may also result in customer
lock-in to a particular brand.

Alternatives: Substitutes like the hybrid vehicle and other means of transport
affect buyer power. However, unique benefits of electric vehicles and
environmental issues tend to outweigh the alternatives for committed buyers

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T H R E AT S O F S U B S T I T U T E G O O D S
Threats also come in the form of substitute goods, including traditional internal combustion engine (ICE) vehicles, which are still
predominant because of their upfront costs being relatively lower, and the products' infrastructure already in place and a sense of
comfort for customers. The middle ground is also hybrid automobiles, offering fuel efficiency without the range anxiety of full EVs.
Affordably priced and accessible public transport also discourages the adoption of the EV. Low cost competition is also created by two-
wheelers and electric bicycles, especially within urban territories. New fuels or better energy storage methods may even emerge that
diminish the present appeal of solutions based on EVs. Third, slow charging infrastructure development is a thrust against gasoline-
powered car substitutes, offering convenience and fast refueling. There are also high-speed developments in hydrogen fuel cell
technology that could challenge battery-powered EVs, especially for heavy-duty transport. Raw material price fluctuations, such as
lithium and cobalt, may also affect the manufacturing cost of EVs, thus pushing electric vehicles backward versus conventional cars.
Further, low levels of consumer awareness combined with a lack of trust in EV technology would keep the pace of adoption slow while
giving substitutes enough time to hold onto their market share.

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 FA C TO R S A F F E C T I N G T H E E V
I N D U S T RY
S O C I A L FA C T O R S :
E N V I R O N M E N TA L C O N C E R N S A N D N E W H A B I T S
T O W A R D S S U STA I N A B L E L I V I N G A R E F O S T E R I N G
D E M A N D F O R E L E C T R I C V E H I C L E S I N I N D I A . O N T H E
OT H E R H A N D, C O N S U M E R H E S I TAT I O N R E L AT E D T O T H E
L I F E O F T H E B AT T E R Y, P E R F O R M A N C E , A N D C H A R G I N G
I N F R A S T R U C T U R E A R E S T I L L C A U S I N G H I N D R A N C E S .
C H A N G I N G M O B I L I T Y S T Y L E S A M O N G T H E YO U N G E R ,
T E C H - S A V V Y G E N E R AT I O N S A R E H I G H LY E N C O U R A G I N G
E L E C T R O N I C A D O P T I O N O F U R B A N M A R K E T S .

T E C H N O LO G I C A L FA C T O R S :
R A P I D D E V E LO P M E N T O F B AT T E R Y T E C H N O LO G I E S ,
S U C H A S S O L I D - S TAT E B AT T E R I E S , M I G H T M A K E I T
P O S S I B L E T O A C H I E V E T H E H I G H E R P E R F O R M A N C E
F R O M E V S , P U S H I N G C O N S U M E R D E M A N D.
I N F R A S T R U C T U R E A N D R A N G E C A PA B I L I T Y R E M A I N
S I G N I F I C A N T B A R R I E R S T O M A S S A D O P T I O N ; I N D I A
S H O U L D F O C U S O N I N D I G E N O U S M A N U FA C T U R I N G O F
E V C O M P O N E N T S A N D B AT T E R I E S F O R LO N G -T E R M
T E C H N O LO G I C A L I N D E P E N D E N C E A N D C O S T
R E D U C T I O N .

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PO LITICAL FACTORS:
I N D I A ' S G O V E R N M E N T P O L I C I E S -T H E FA M E S C H E M E A N D I N C E N T I V E S
F O R E V M A N U FA C T U R E R S - W I L L D E C I D E T H E M A R K E T. P O L I T I C A L W I L L
TO F U R T H E R E X PA N D C H A R G I N G I N F R A ST R U CT U R E A N D TO
P ROMOT E A F OCU S ON CLEA N EN ERGY IS CRIT ICA L TO G ROWT H IN
T H I S I N D U S T R Y. T R A D E P O L I C I E S A N D TA R I F F S O N I M P O R T S O F R A W
M AT E R I A L S S U C H A S L I T H I U M A D D U P TO T H E CO ST ST R U CT U R E .
E CONOMIC FACTORS:
INDIAN CONSUMERS ARE VERY SENSITIVE TO PRICE AND
A F F O R DA B I L I T Y B E CO M E S A G R E AT I S S U E . T H O U G H E V S H AV E A L L
ASPECTS OF OWNERSHIP COSTS SMALLER, THE HIGH COST OF ENTRY
I S N OT A L E A S T- D E T E R R E N T FA C T O R F O R C O N S U M E R S . A L S O,
V O L AT I L E F U E L P R I C E S A N D G O V E R N M E N T S U B S I D I E S H AV E A K E Y
I M PACT O N T H E E V M A R K E T ' S CO M P E T I T I V E N E S S AG A I N ST N O R M A L
INTERNAL COMBUSTION VEHICLE PRODUCTS.

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TRAITS OF AN
ENTREPRENEUR

Born in South Africa in 1971, Elon Musk is an entrepreneur who has

founded and led several influential companies. He first founded
PayPal in the late 1990s before eventually becoming the CEO of
Tesla, which revolutionized the electric vehicle industry. He also
established SpaceX, founded in 2002 to reduce the cost of space
transportation and pave the way for human colonies on Mars. Later,
he established Neuralink in 2016 to advance brain-computer
interfaces and then The Boring Company dedicated to tunnel
building. Another blockbuster business deal from him was his 2022
widely criticized $44 billion acquisition of Twitter (now X).Musk's goal
for ambitious ambition and outspoken personality helped him reach
the lists of the world's richest people. His work includes electric
vehicles, renewable energy, space exploration, artificial intelligence,
and social media.

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ELON MUSK AND
S TA R T I N G O F
TESLA

17
STORY ON HOW ELON MUSK
S TA R T E D T E S L A
ELON MUSK become the company's largest investor in 2004 when he invested $6.5 million in the initial round.
He was involved in product development, particularly in building Tesla's first car: the Roadster, which had a
Lotus Elise chassis, and was the first example of electric cars really being high-performance, and highly
desirable.

The company had gone through a lot during the financial crisis of 2008 when it almost went bankrupt. In the
action, Musk decided to invest most of his remaining personal fortune that he had made on his way out from
the acquisition deal of PayPal to join Tesla and became the CEO. During his tenure, the Model S luxury sedan
was developed, which changed the perception of electric vehicles among the public. The Model S, launched
in 2012 was a model that proved electric cars could be practical and luxurious-wining it after awards and made
Tesla a serious matter to reckon with as an automotive manufacturer.
Musk's plan was to introduce with high-end variants-the Roadster and Model S-to bankroll further, more
consumer-friendly variants. In this way, 2017 witnessed the entrance of Model 3, which became the best-selling
electric car in the world. Toward this, Tesla integrated its value chain vertically by constructing extremely large
battery factories, dubbed Gigafactories, to ensure its supply and save costs. The company also created its
proprietary software and self-driving automobile capabilities, another feature in which it was distinct among
legacy automakers.

Its growth was propelled by the vision and prudence of the CEO in marketing, which is always set with rather
bold promises to investors and customers. Despite several production mishaps and skepticism from the
traditional auto industry, Tesla went on to become the world's most valuable automaker by market
capitalization in 2020. The progress made by the company has expedited the transition of the whole industry
into electric vehicles, and Musk realized his ambitious goal of accelerating the world's shift toward
sustainable energy.

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 TRAITS OF ELON MUSK
VISIONARY THINKING: Elon Musk is a big-picture man who tries to solve the
problems of climate change, space exploration, and sustainable energy. He
emphasizes seeing into the future that appears impossible, such as colonizing Mars
or a sustainable energy grid, in his businesses. He does not strive for incremental
change but for breakthrough progress. This forward-thinking mindset has allowed
him to create companies like SpaceX, Tesla, and Neuralink-all of which address
difficult problems that take a long time to solve. His vision is often a magnet that
attracts talent and investment to his ventures.

RISK TAKING: Musk is prepared to take substantial risks when others are
extraordinarily careful with the stake of their own wealth, on occasion. He has invested
close to all his personal wealth into SpaceX and Tesla at a time when both were on
the brink of collapse. Such examples are testaments to his strong belief and
commitment to his business ventures. Another such habit is that of pursuing a non-
conventional approach of business models like making electric cars in an industry
mostly owing to gas guzzlers. His readiness to take calculated risks so as not to hide
from failure has well been part of his success story. His thinking is based on the
principle that extreme risks have to be taken for innovation to become revolutionary.

20
EMPHASIS ON FIRST PRINCIPLES THINKING: Musk is an ardent proponent of first
principles thinking-approach involving breaking down complex problems to their
most basic, fundamental truths and reasoning up from there. This attitude helps him
tackle problems from a clean slate and without assumptions or prejudices that might
curtail creativity. Thus, instead of agreeing that rockets were expensive to
manufacture, he broke down what was going into their construction and found he
could make rockets cheaper. This attitude has led him to better efficiencies and cost-
effective solutions in all the businesses he has undertaken. He has been able to create
an invention by questioning everything from grounds up.

RESILIENCE AND ADAPTABILITY: Musk has shown unparalleled resilience and

adaptability in his career, especially in his encounter with failure or when setbacks
come knocking on the door. Either it was the case of a rocket explosion of SpaceX at
an early stage or there were production headaches with Tesla. In both cases, Musk
has shown an ability to bounce back and come up with adaptation strategies. In fact,
he appears to have picked more from failures than losing-impacts, as he has been
able to adjust the business models or even alter the operation to make way for better
things ahead. Again, his ability to absorb criticism yet not stop again, due to setbacks,
reflects in his achievements. Adaptability to an environment where entrepreneurship
can never be predictable has kept him going.

21
DISRUPTIVE INNOVATION: Musk has founded companies based on the concept of
disruptive innovation: he has created innovations that upend existing industries. Tesla
didn't try to make the best gasoline-powered car but rather show an alternative to a
totally electric vehicle to change the face of the auto industry. SpaceX had an
innovative approach to reducing costs in launching and, therefore, making space
accessible. His work with SolarCity and Boring Company further disrupts the energy
and transportation categories, respectively. His ability to find and capitalize on
opportunities for disruption makes him one of the most influential entrepreneurs in
the 21st century.

LEADERSHIP AND TEAM BUILDING : Musk's leadership is intense, demanding, and

often unconventional, but it has proven highly effective at driving innovation. He hires
top talent and challenges them to deliver spectacular results, pushing his teams to
exceed expectations. Although he is extremely demanding, he inspires passion and
visions in his employees, creating a hard work as well as innovation culture. This is not
leadership by micromanaging but inspiring the teams to believe in ambitions that are
worthy and work toward them; companies have been built from close collaboration
and shared sense of purpose, driving relentless pursuit towards success.

22
INDOMITABLE WORK HABITS: Elon Musk's work habits are sublime; he often reports
to work for 100 hours a week. In important hours, Elon Musk has slept on the floor of
his factory. He is so vocally committed to his businesses and projects that he reaches
the boundaries of human strength. He is famously hands-on, involved in everything
from product design to production processes. His work ethic is propelled by passion
in solving the most critical problems, and he expects much the same from his team.
This drive often inspires both admiration and criticism but has been crucial in turning
his ambitions into successful ventures.

INNOVATIVE PROBLEM SOLVING: Clearly, that's why he's succeeded he addresses

issues in innovative, seemingly counterintuitive ways. He does not do as everyone
else: instead of following the status quo, he 'thinks all challenges anew in ways that
could disrupt industries.' It was a challenge when SpaceX came up with reusable
rocket technology and in leaps and bounds cut the costs for travel to space. Tesla,
keeping their attention on its software and self-driving cars, is determining what car
companies can be in the future. He often inspires his teams to think outside the box
and achieves hands-on participation in solving issues, which enables him to quickly
spot and deploy breakthrough solutions quickly. Often times, unorthodox methods
endow his companies with a competitive edge.

23
Such are traits like vision thinking, risk-
taking, work ethic, problem-solving,
first principles thinking, adaptability,
disruptive innovation, and leadership.
It is based on these factors that Musk
is built for success as a small
entrepreneur who could revolutionize
multiple industries simultaneously.

24
CONCLUSION
The electric vehicle industry in India stands at the
crossroads of transformation, showing tremendous promise
with an estimated CAGR of 49% between 2022-2030.
Domestic manufacturing and adoption rates received a
significant boost from government initiatives such as FAME
II and Production Linked Incentive (PLI). Increasing charging
infrastructure with over 5,000 public charging stations
installed by 2023 further reinstates growing confidence in
the sector. Electric two-wheelers have shown higher
penetration in the transition, while ever-rising fuel prices
and environmentally conscious consumers propel electric
vehicles to unprecedented levels. Despite these challenges,
the manufacturers are rapidly working through the rising
initial costs as well as range anxiety. The leaders in the
automotive space, whether domestic or international, are
pouring a lot of investment in the Indian EV ecosystem,
which should instill much confidence in the market. With
supportive policies, technological progress, and growing
consumer acceptance, the Indian EV industry is aptly
positioned to make its 30% penetration goal of electric
vehicles by 2030 a reality.
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MarketsandMarkets,www.marketsandmarkets.com/Market-Reports/electric-vehicle-market-209371461.html.
7. Alternative Fuels Data Center: Electric Vehicles. afdc.energy.gov/vehicles/electric.
T H A N K YO U !