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Ev Cycle Report

The project report details the launch plan for an EV cycle startup in South India, targeting eco-friendly and affordable electric cycles priced below ₹20,000. The estimated project cost is ₹2.5 crore with a projected ROI of 25% within three years, focusing on urban commuters and delivery personnel. The startup aims to leverage government incentives and address market gaps in affordability and features to capture a significant market share.

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Subramanya Seeta Ram Prasad

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0% found this document useful (0 votes)

34 views4 pages

Ev Cycle Report

Uploaded by

Subramanya Seeta Ram Prasad

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

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EV Cycle Startup Project Report

This project report outlines the plan for launching an EV cycle startup focused
on eco-friendly, affordable, and innovative transportation solutions.
With the growing demand for sustainable mobility in urban and semi-urban
areas, particularly in South India (Vijayawada, Hyderabad), this startup aims to
offer high-quality electric cycles priced below ₹20,000.
The total project cost is estimated at ₹1.7 crore, with an expected ROI of 25%
within the first three years.

This project report outlines the plan for launching an EV cycle startup focused on eco-
friendly, affordable, and innovative transportation solutions.
With the growing demand for sustainable mobility in urban and semi-urban areas,
particularly in South India (Vijayawada, Hyderabad), this startup aims to capture a
significant share of the market.
The total project cost is estimated at ₹2.5 crore, with an expected ROI of 25% within the
first three years.

2. Business Idea

The startup will design and manufacture electric cycles that offer unique features such as
extended battery range, fast charging, lightweight frames, and integration with smart
technology like GPS and IoT.
The USP of the product is its affordability combined with cutting-edge features catering to
commuters, delivery professionals, and eco-conscious individuals.

3. Market Analysis

a. Industry Overview

The EV and micro-mobility market in India is growing at a CAGR of 43%. South India
contributes approximately 45% of the market share,
with Andhra Pradesh and Telangana being key regions due to proactive EV policies and
incentives.
b. Target Audience

Primary demographics include urban commuters, college students, and delivery service
personnel in cities like Vijayawada and Hyderabad.

c. Competitor Analysis

Competitors such as Hero Lectro and EMotorad dominate the market. However, gaps exist
in providing affordable, feature-rich EV cycles with strong after-sales support.

- Battery Capacity: 150W Lithium-Ion, 30-40 km range per charge.

- Charging Time: 4 hours.
- Weight: 20 kg with a durable steel frame.
- Features: Basic functionality without IoT integration for cost efficiency.

a. Product Design and Features

- Battery Capacity: 250W Lithium-Ion, 60km range per charge.

- Charging Time: 4 hours.
- Weight: 18 kg with aluminum frame.
- Additional Features: Mobile app integration, GPS tracking, and IoT-based monitoring.

b. Manufacturing Process

The manufacturing process involves outsourcing battery and motor production while
assembling the final product in-house.

c. Compliance and Certifications

The startup will adhere to AIS 156 standards for battery safety and other relevant
certifications for electric vehicles.

5. Financial Plan

a. Cost Estimation

- R&D and Product Development: ₹50 lakh

- Manufacturing Setup: ₹1 crore
- Marketing and Branding: ₹30 lakh
- Operational Costs (1 year): ₹70 lakh
Total Estimated Cost: ₹2.5 crore

- R&D and Product Development: ₹30 lakh

- Manufacturing Setup: ₹70 lakh
- Marketing and Branding: ₹20 lakh
- Operational Costs (1 year): ₹50 lakh
Total Estimated Cost: ₹1.7 crore

- Direct sales at ₹30,000 per unit with an initial production of 5,000 units annually.
- Subscription/rental model at ₹1,500 per month.
- Maintenance and after-sales services at an additional charge.

c. Funding Requirements

- Retail price: ₹19,999 per unit.

- Initial production target: 10,000 units annually.
- Total revenue (Year 1): ₹20 crore.

d. Break-Even Analysis

The startup is expected to break even within 2.5 years with an annual revenue target of ₹7.5
crore from the third year.

6. Marketing and Sales Strategy

- Online presence through e-commerce platforms and a dedicated website.

- Offline presence via dealerships and partnerships with delivery companies.
- Promotions through social media campaigns, events, and collaborations with local
businesses.

7. Operational Plan

The startup will operate from a facility in Vijayawada, employing 25 staff members for
manufacturing, sales, and operations.

8. Government Policies and Incentives

The startup will benefit from the FAME II scheme, which offers subsidies for EV
manufacturing and incentives for customers.
State-level EV policies in Andhra Pradesh and Telangana provide additional benefits such as
tax exemptions and infrastructure support.

9. Risk Analysis

Potential challenges include high competition, supply chain disruptions, and consumer
adoption rates. Risk mitigation strategies include diversifying suppliers and focusing on
customer education.

10. Conclusion

With a clear focus on innovation, affordability, and sustainability, this EV cycle startup aims
to transform the micro-mobility landscape in South India, generating significant economic
and environmental benefits.