Management
Management
DEPARTMENT
OF
AUTOMOBILE ENGINEERING
By
7th Semester
Department of Automobile Engineering
DECLARATION
I Krishna P Holla Bearing the USN 1DS21AU014 hereby declare that, I have prepared the
Management project report by considering self-developed idea/concept by referring to the standard
text books/ referencebooks, related web portals & have not copied from any other students.
Date: Date:
Date
I wish to express my gratitude towards our course coordinator Ms. REENA Y.A, (Assistant
Professor) Dept. of Automobile Engineering for her able guidance and useful suggestions to
help us complete our project report in the right time. And I also thank the Department of
Automobile and the other faculties for helping me in successfully completing M&E project
report.
I would also like to thank Dr. Vijay Tambrallimath, Associate Professor, & HOD of
Department of Automobile Engineering, DSCE. Bangalore for providing us the chance to prepare
M&E project report.
Krishna P Holla
1DS21AU014
2. INTRODUCTION
As cities grow and urban density increases, traditional delivery vehicles contribute significantly to
congestion, pollution, and inefficiency. Last-mile delivery—the transport of goods from a distribution
hub to the final destination—is one of the costliest and most logistically challenging phases of the
supply chain. AEDVs, specifically engineered for urban landscapes, address these challenges by
providing a scalable, emission-free delivery alternative. Their compact size, zero-emission design,
and ability to operate continuously without a driver make them ideal for handling high delivery
volumes, especially in areas with restricted vehicle access or emissions regulations.
AEDVs are built on a foundation of advanced autonomous driving technologies, which include
sensors such as LIDAR, radar, GPS, and computer vision. These sensors allow AEDVs to navigate
through complex urban environments, avoiding obstacles, following traffic laws, and responding to
unpredictable events. The electric drivetrains that power AEDVs are optimized for energy efficiency,
reducing operating costs and minimizing environmental impact compared to conventional fuel-
powered vehicles. Integrated with artificial intelligence and machine learning, AEDVs can
continuously improve their route planning and decision-making capabilities, learning from real-time
data to optimize delivery routes and reduce idle time.
AEDVs offer substantial cost savings for companies involved in last-mile logistics by eliminating
driver wages and optimizing fuel consumption. Operating on electric power reduces not only fuel
costs but also vehicle maintenance expenses, as electric drivetrains are generally more robust and
require fewer repairs than internal combustion engines. Environmentally, AEDVs contribute to the
reduction of greenhouse gas emissions and noise pollution in urban areas. This aligns with increasing
regulatory pressures on cities and companies to reduce their carbon footprint, making AEDVs not
only economically viable but also a socially responsible investment.
The rise of e-commerce has created unprecedented demand for fast, reliable last-mile delivery
services. Consumer expectations for rapid, same-day, and next-day deliveries are reshaping the
logistics industry, pushing for solutions that can keep up with high order volumes without
compromising on delivery speed or environmental impact. AEDVs present a unique opportunity to
streamline last-mile delivery networks, enabling companies to meet the fast-paced demands of
modern consumers while keeping operational costs and environmental impact in check. By enabling
continuous, around-the-clock delivery, AEDVs could significantly improve delivery efficiency and
customer satisfaction.
AEDVs represent more than just an innovation in logistics; they are a building block of future smart
cities. By integrating with smart city infrastructure, such as traffic management systems and vehicle-
to-infrastructure (V2I) communication networks, AEDVs could become part of an interconnected
urban ecosystem. This integration would allow for dynamic route optimization based on real-time
traffic data, reducing congestion and further lowering emissions. AEDVs equipped with advanced
communication systems could coordinate with other autonomous vehicles, optimizing traffic flow
and minimizing delivery times across the city.
3. MARKET POTENTIAL
The potential market for Autonomous Electric Delivery Vehicles (AEDVs) is expanding rapidly as
urbanization, e-commerce growth, and demand for sustainable transport solutions drive the need for
The last-mile delivery sector has seen significant expansion due to the rise in e-commerce,
particularly in densely populated urban areas. This stage of delivery, typically from a warehouse to
the final consumer, accounts for a substantial portion of total logistics costs due to the need for
individualized deliveries and short delivery windows. AEDVs address these cost challenges by
reducing reliance on human drivers and operating efficiently on electric power, leading to both
operational and cost savings for logistics providers. As consumer expectations for fast, flexible
delivery grow, AEDVs are positioned as a transformative solution for last-mile logistics, capable of
meeting demands for speed, reliability, and sustainability.
1. E-commerce Expansion: The steady rise of online retail has created an unprecedented demand
for efficient and scalable last-mile delivery solutions. AEDVs, capable of handling high delivery
volumes while reducing carbon emissions, are well-suited for this growing demand.
2. Environmental Regulations: Increasing governmental regulations for emissions reductions and
urban air quality are pushing companies to adopt low- or zero-emission delivery vehicles. Cities
worldwide are implementing clean air zones and restrictions on traditional fuel-powered
vehicles, creating opportunities for AEDVs.
3. Labor Shortages in Logistics: The logistics industry faces a global shortage of drivers and
labor, which is especially acute in high-density urban areas. Autonomous vehicles provide a
solution to this challenge by eliminating the dependency on human drivers, enabling continuous
operation.
4. Technological Advancements: Advances in artificial intelligence (AI), battery technology, and
sensor systems are making AEDVs increasingly reliable and cost-effective. Autonomous driving
software, combined with improvements in electric vehicle (EV) range and efficiency, enhances
the appeal of AEDVs as a long-term investment.
1. North America: The North American AEDV market is driven by large e-commerce platforms
and logistics firms seeking to optimize last-mile delivery. Regulatory incentives for electric
vehicles (EVs) and increasing investments in autonomous technology from major players create
favorable conditions for AEDV adoption.
2. Europe: Stringent emission standards and clean air zones are promoting the adoption of AEDVs
across European cities. Governments offer substantial subsidies for EVs, and logistics
companies are responding to regulations aimed at achieving net-zero emissions.
Emerging markets in Asia, Africa, and Latin America are witnessing rapid urbanization and
increasing middle-class populations, leading to a rise in demand for consumer goods and e-
commerce. These regions are also contending with severe air pollution, creating an urgent need
for sustainable delivery solutions. AEDVs can offer cities in these regions a sustainable, scalable
solution that aligns with infrastructure expansion and government objectives for green
development.
On-demand delivery services are becoming increasingly popular, particularly in sectors such as
food, groceries, and pharmaceuticals. AEDVs, with their ability to operate autonomously and
continuously, are highly suited for on-demand delivery models, where speed and responsiveness
are key. This market segment is expected to grow significantly as consumers increasingly rely on
digital platforms to meet daily needs, positioning AEDVs as a primary vehicle for these services.
The AEDV market is becoming highly competitive, with both established automakers and tech
startups entering the space. Major players are investing in autonomous and electric technologies to
stay competitive in the logistics sector.
• Key players in the AEDV market include companies like Amazon (with its Scout delivery
robot), Nuro, and Starship Technologies, each focused on developing autonomous last-mile
delivery solutions.
• Partnerships and Alliances: Leading AEDV companies are forming partnerships with
logistics providers, municipalities, and tech firms to ensure effective deployment and
integration of AEDVs within existing urban infrastructures.
• Technology Innovation: The competitive landscape is driven by rapid advancements in AI,
machine learning, and battery technology, allowing AEDV providers to enhance vehicle
reliability, safety, and efficiency.
According to market research, the global autonomous delivery vehicle market is expected to grow
at a compound annual growth rate (CAGR) of over 20% in the next decade. The AEDV segment,
as a subset of this market, is projected to capture a substantial portion of this growth due to its
application in urban logistics and alignment with sustainability goals. Increasing investments from
venture capitalists, coupled with government incentives, are accelerating AEDV development and
deployment, positioning AEDVs as a mainstay in urban delivery networks.
While the market for AEDVs is promising, several challenges must be considered:
1. Regulatory Uncertainty: Autonomous vehicle regulations vary greatly across countries and
cities, creating a complex regulatory environment that AEDV companies must navigate.
2. High Initial Costs: The upfront investment required for AEDV technology, including autonomous
driving hardware and electric powertrain systems, can be a barrier for some businesses.
3. Infrastructure Requirements: Effective deployment of AEDVs requires a supportive urban
infrastructure, including EV charging stations, high-quality mapping data, and vehicle-to-
infrastructure (V2I) communication.
• Autonomous Technology: Advancement in AI and robotics will reduce costs and increase
adoption.
• Battery Efficiency: Continued innovation in battery technology will improve range and reduce
charge time.
• Operational Costs: Electric vehicles have lower maintenance and fuel costs than traditional
vehicles.
Financial Assumptions
• Capital Investment: AEDVs require initial capital for R&D, technology integration, and
infrastructure.
• Projected Revenue: Revenue is expected to grow 15% annually with increased adoption by
logistics companies.
• Reliable Supply Chain: It is assumed that key materials like aluminium, steel, composite materials,
and electronic components for safety systems will be reliably sourced from established suppliers.
• Supplier Partnerships: Strategic partnerships with component and system suppliers (e.g., battery
systems, electric drivetrains, and safety components) will support product quality and reduce costs.
The table below tabulates the schedule of events and the period in which it is carried out.
Site Selection 2
Procurement of Machinery 10
It is necessary to obtain permanent Registration Certificate from the concerned District Industries
Centre after commencement of commercial production.
AEDVs combine autonomous driving, electric propulsion, and real-time communication systems.
The main technical areas covered include:
Manufacturing Process
The manufacturing process involves CAD design, modular assembly, and rigorous quality control
tests. Final tests cover crashworthiness, electrical safety, and software reliability.
Process of Manufacture:
Metal sheets are cleaned and de-rusted for grease or oil if any. Then sheets are cut to size for forming
different parts and these parts are formed on press brake. Now different parts and their subassemblies
are fabricated as per their design and size. These parts and subassemblies are fabricated– together to
make them a complete bus body. The complete body is painted as per the requirements of the
customer. Shower test is carried out for leakage etc.
The Quality control and Standards depends on the production capacity (per annum).
Value Rs 13,51,00,000
Energy Conservation:
Suitable energy efficient motors are to be used on proposed machines with provision of recommended
shunt capacitors.
Setting up AEDV manufacturing facilities involves substantial capital for robotics, battery systems,
and assembly lines.
• Land Acquisition: Urban facility location for proximity to delivery networks.
• Technology Investment: AI systems, LIDAR, GPS, and robotics for autonomous capabilities.
Operating Costs
• Material Costs: Electric drivetrains, AI sensors, and lightweight materials are significant cost
drivers.
• Maintenance and Utilities: AEDVs, as electric vehicles, have lower maintenance requirements
than traditional delivery vehicles.
Revenue Projections
The revenue projections for the Autonomous Electric Delivery Vehicles (AEDVs) project are based
on growing demand in the e-commerce and urban logistics sectors. Starting with a production of 300
units in the first year, the company expects to scale up to 1,000 units annually by the fifth year. At an
estimated price of ₹24,00,000 per unit, annual revenue is projected to grow from ₹72,00,00,000 in
Year 1 to ₹2,40,00,00,000 by Year 5. This growth is driven by advancements in autonomous and
electric vehicle technologies, favorable government incentives, and increased adoption of sustainable
delivery solutions. Additional income streams from maintenance services and software updates
further enhance revenue potential. These projections highlight the strong financial viability of the
project.
Capital Investment:
The capital investments required for the Autonomous Electric Delivery Vehicles (AEDVs) project
include significant upfront costs to establish the necessary infrastructure, procure advanced machinery,
and develop the technology. The primary expense is the setup of the manufacturing facility, including
land acquisition, construction, and installation of automated assembly lines, estimated at ₹9,00,00,000.
Investments in cutting-edge machinery, such as robotics for assembly and testing equipment,
contribute an additional ₹4,00,00,000.
Another major component is the development and integration of autonomous driving systems,
including LIDAR sensors, AI control units, and battery technology, requiring ₹2,00,00,000.
Operational Costs:
Raw Materials: The cost of raw materials such as lithium-ion batteries, aluminum, carbon fiber, and
electric motors constitutes around 45-55% of the total production costs. These high-performance
materials ensure durability, efficiency, and lightweight design for the AEDVs.
Labor: Labor costs include wages for engineers, technicians, quality control specialists, and R&D
teams involved in designing, assembling, and testing vehicles. These costs typically account for 20-
25% of total expenses.
Energy and Utilities: Manufacturing processes, such as welding, autonomous system calibration,
and charging infrastructure setup, are energy-intensive and contribute 5-10% to total operating costs.
The monthly utilities and overheads for the Autonomous Electric Delivery Vehicles (AEDVs) facility
include essential operational expenses such as electricity and power (₹5,00,000), water supply
(₹50,000), and maintenance costs (₹2,00,000) to ensure smooth production processes. Additionally,
₹1,50,000 is allocated for software licenses supporting design and autonomous systems. Miscellaneous
costs, including communication and waste management, amount to ₹1,00,000. As outlined in the table,
these combined overheads total ₹10,00,000 per month, forming a crucial part of the company’s
operational budget. These expenses are vital to maintaining production efficiency, ensuring high-
quality output, and meeting project deadlines.
The annual operational costs for the Autonomous Electric Delivery Vehicles (AEDVs) company
encompass all recurring expenses necessary to sustain production, maintain quality, and manage
administrative functions. These costs include workforce salaries, which are critical for skilled
engineers, technicians, and administrative staff, amounting to ₹2,58,00,000 annually. Component
procurement, such as batteries, electric motors, and sensors, is a significant expense, totaling
₹95,00,00,000 for the production of 500 units. Utilities and overheads, including electricity, water
supply, and maintenance, contribute an additional ₹1,00,00,000 to the annual budget. Regular
maintenance ensures that all machinery and software are functioning optimally, while software
licenses and upgrades support the development and refinement of autonomous technologies.
Miscellaneous expenses such as office supplies and communication systems round off the operational
costs. Overall, the annual operational costs are estimated at ₹99,08,00,000, as detailed in the balance
sheet, ensuring the company operates efficiently while meeting production and quality standards.
Revenue Projections
The revenue projections for the Autonomous Electric Delivery Vehicles (AEDVs) company are based
on anticipated production volumes, market demand, and pricing strategies. By analyzing trends in e-
commerce, urban logistics, and the adoption of autonomous electric vehicles, the company can
estimate its growth trajectory over the next five years.
The profitability of the Autonomous Electric Delivery Vehicles (AEDVs) project is driven by a
combination of market demand, technological advancements, and operational efficiencies. By
leveraging the increasing adoption of autonomous and electric technologies, the project demonstrates
strong potential for sustained financial performance and growth
Break-Even point:
The Break-Even Point (BEP) refers to the level of production or sales at which total revenue equals
total costs, resulting in neither profit nor loss. The BEP represents the minimum number of units that
need to be produced and sold to cover all fixed and variable costs of production. Once the BEP is
surpassed, the business begins to generate profit.
The Autonomous Electric Delivery Vehicles (AEDVs) project represents a transformative step in
modern urban logistics, addressing key challenges such as congestion, emissions, and inefficiency.
By combining autonomous driving technologies with electric propulsion, AEDVs offer a sustainable
and efficient solution for last-mile delivery. This project leverages advancements in artificial
intelligence, sensor technologies, and lightweight materials to ensure high performance and
reliability in urban environments.
With the rapid growth of e-commerce and the global push for greener transportation, the demand for
AEDVs is expected to rise significantly. The project also aligns with government policies promoting
clean energy and autonomous mobility, creating a favorable environment for market adoption.
Financial analyses demonstrate strong revenue potential, with the business achieving profitability
after meeting the break-even point of 350 units annually.
The AEDVs' ability to reduce operational costs, enhance delivery efficiency, and minimize
environmental impact makes them a game-changer in logistics. By adopting innovative designs,
strategic supplier partnerships, and sustainable practices, the project not only meets current market
needs but also sets the foundation for long-term growth. This initiative is poised to redefine urban
delivery systems, contributing to a cleaner, smarter, and more efficient future.
1.SAE International
Title: "Guidelines for Safe Deployment of Automated Driving Systems in Urban Environments"
Link: [https://www.sae.org](https://www.sae.org)
5. NVIDIA Corporation
Title: "AI and Machine Learning for Autonomous Vehicles"
Link: [https://www.nvidia.com](https://www.nvidia.com)
6. Continental AG
Title: "Autonomous Driving and Electric Mobility Solutions for Urban Logistics"
Link: [https://www.continental.com](https://www.continental.com)
7. Accenture
Title: "The Economic Impact of Autonomous Vehicles on Urban Logistics"
Link: [https://www.accenture.com](https://www.accenture.com)
8. Tata Power
Title: "EV Charging Infrastructure for a Sustainable Future"
Link: [https://www.tatapower.com](https://www.tatapower.com)