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Management

The report discusses the Autonomous Electric Delivery Vehicle (AEDV) project, aimed at creating a sustainable, automated solution for last-mile logistics in urban areas. It highlights the market potential, technological advancements, and economic benefits of AEDVs, while also addressing challenges such as regulatory hurdles and high initial costs. The document emphasizes the growing demand for efficient delivery solutions driven by e-commerce and environmental regulations, projecting significant growth in the AEDV market over the next decade.
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0% found this document useful (0 votes)
12 views22 pages

Management

The report discusses the Autonomous Electric Delivery Vehicle (AEDV) project, aimed at creating a sustainable, automated solution for last-mile logistics in urban areas. It highlights the market potential, technological advancements, and economic benefits of AEDVs, while also addressing challenges such as regulatory hurdles and high initial costs. The document emphasizes the growing demand for efficient delivery solutions driven by e-commerce and environmental regulations, projecting significant growth in the AEDV market over the next decade.
Copyright
© © All Rights Reserved
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
You are on page 1/ 22

DAYANANDA SAGAR COLLEGE OF ENGINEERING

(An Autonomous Institute Affiliated to VTU, Belagavi)

Shavige Malleshwara Hills, Kumaraswamy Layout, Bengaluru-560078

DEPARTMENT

OF

AUTOMOBILE ENGINEERING

A Report on The Autonomous Electric Delivery

By

Krishna P Holla - 1DS21AU014

MANAGEMENT AND ENTREPRENEURSHIP


(1M51)

7th Semester
Department of Automobile Engineering

Dayananda Sagar College of Engineering


Bangalore-560078

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 1


DAYANANDA SAGAR COLLEGE OF ENGINEERING
(An Autonomous Institute Affiliated to VTU, Belagavi)

Shavige Malleshwara Hills, Kumaraswamy Layout, Bengaluru-560078

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.

Signature of the student Signature of the Faculty

Date: Date:

Marks Awarded (20):

Signature of the HOD

Date

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 2


ACKNOWLEGEMENT

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

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page 3


Table of Contents
Sl No. Description Page
No:
1. ABSTRACT 02
2. INTRODUCTION 02
3. MARKET POTENTIAL 04
4. BASIS AND PRE-ASSUMPTIONS 07
5. IMPLEMENTATION SCHEDULE 09
6. TECHNICAL ASPECTS 10
7. FINANCIAL ASPECT AND ANALYSIS 12
8. DETAILS OF COMPONENTS AND SUPPLIERS 14
9. CONCLUSION 18
10. REFERENCE 19

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 4


1. ABSTRACT
The Autonomous Electric Delivery Vehicle (AEDV) project is an initiative to develop a sustainable,
automated solution for last-mile logistics in urban environments. AEDVs offer emission-free
transport and enhanced safety, targeting businesses involved in e-commerce and parcel delivery. By
incorporating advanced AI systems and electric propulsion, AEDVs can transform urban delivery
models, reducing costs, enhancing operational efficiency, and aligning with global sustainability
goals. This report evaluates market potential, technical and financial aspects, and detailed
implementation phases.

2. INTRODUCTION

The global shift toward sustainable, efficient urban


transportation has brought autonomous electric
delivery vehicles (AEDVs) to the forefront of logistics
innovation. AEDVs are purpose-built, self-driving
vehicles designed to transport goods and packages
without human intervention, offering a clean, efficient
solution for last-mile delivery in congested urban
environments. Leveraging cutting-edge technologies in
artificial intelligence, machine learning, and electric
propulsion, AEDVs are designed to meet the demands Fig no 1: ADEV
of modern e-commerce and retail markets. They
promise to reduce costs, improve delivery efficiency, and decrease urban congestion and emissions,
transforming how goods move within cities.

Importance of AEDVs in Modern Urban Logistics

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.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page 5


Technological Foundation of AEDVs

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.

Economic and Environmental Benefits

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.

AEDVs and the E-commerce Boom

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.

Challenges and Considerations in AEDV Deployment

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 6


Despite their advantages, AEDVs face challenges that must be addressed for successful deployment.
Navigating densely populated areas requires sophisticated, highly reliable sensor systems and
decision-making algorithms. Regulatory frameworks surrounding autonomous vehicles vary widely
across jurisdictions, presenting a complex landscape for AEDV companies to navigate. In addition,
the relatively high initial cost of autonomous and electric technologies presents a barrier to entry,
though this is expected to decrease as the technologies mature and economies of scale are achieved.

The Role of AEDVs in Future Smart Cities

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

Fig no 2: Autonomous Electric Delivery Vehicles for Urban Logistics

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

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page 7


innovative last-mile logistics solutions. AEDVs address critical urban challenges such as congestion,
emissions, and labor shortages by offering an eco-friendly, efficient, and scalable option for package
delivery. This market is poised for accelerated growth, supported by favorable policies,
environmental regulations, and advances in autonomous driving and battery technologies. Below are
key factors defining the market potential for AEDVs:

Growing Demand for Last-Mile Delivery Solutions

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.

Key Market Drivers and Growth Factors

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.

Regional Market Analysis

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.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 8


3. Asia-Pacific: Rapid urbanization, e-commerce growth, and government-led smart city initiatives
are accelerating AEDV market growth in Asia-Pacific. Countries like China, Japan, and South
Korea are investing in EVs and autonomous technology, offering a supportive ecosystem for
AEDV deployment.
4. Middle East & Africa: Although a developing market for AEDVs, there is growing interest in
sustainable logistics solutions in urban areas with high levels of pollution. AEDVs offer a means
to address these environmental concerns while enhancing delivery efficiency.

Opportunities for AEDVs in Emerging Markets

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.

AEDVs and the Rise of On-Demand Delivery

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.

Competitive Landscape and Key Players

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.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page 9


Market Size and Growth Projections

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.

Challenges and Limitations

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.

4. BASIS AND PRE-ASSUMPTIONS

Market Trends and Growth Predictions


The market for Autonomous Electric Delivery Vehicles (AEDVs) is experiencing rapid growth,
driven by several key trends that reflect the evolving landscape of urban logistics, sustainability,
and technological innovation. As e-commerce continues to expand, the demand for efficient, fast,
and cost-effective last-mile delivery solutions is rising. AEDVs, with their ability to reduce
operational costs and carbon emissions, are well-positioned to meet this demand. Increasing
urbanization and the need for cleaner transportation options are also major drivers, with
governments around the world implementing stricter emissions regulations and offering incentives
for electric and autonomous vehicles.
One significant trend is the adoption of electric vehicles (EVs) in the logistics sector, fueled by
advancements in battery technology, which are improving energy density, reducing charging times,
and lowering costs. Alongside this, autonomous driving technologies are rapidly advancing, with
breakthroughs in artificial intelligence (AI), machine learning, and sensor integration enabling
greater reliability and safety for autonomous operations in complex urban environments.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 10


The growing emphasis on sustainability is another critical factor, as companies and cities alike are
prioritizing eco-friendly solutions to reduce their carbon footprint. Governments are increasingly
offering financial incentives to encourage the adoption of electric and autonomous vehicles,
particularly in urban areas with high traffic congestion and pollution.
Growth predictions for the AEDV market suggest a compound annual growth rate (CAGR) of over
20% in the coming decade, driven by continued advancements in both electric and autonomous
technologies. The global shift towards green logistics, coupled with the increasing need for
efficient, on-demand delivery systems, positions AEDVs as a key component in the future of urban
mobility. As the market matures, economies of scale and technological advancements are expected
to further drive down costs, making AEDVs a more affordable and attractive option for logistics
providers worldwide.
Technological and Operational Assumptions

• 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.

4. Supplier and Material Availability

• 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.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page 11


5. IMPLEMENTATION SCHEDULE

The table below tabulates the schedule of events and the period in which it is carried out.

Duration (in Weeks) Activity

Product Selection and Conceptualization 4

Site Selection 2

Registration and Licensing 4

Financial Planning and Loan Sanction 20

Recruitment of Key Personnel 4

Procurement of Machinery 10

Vehicle Testing and Quality Checks 3

Market Launch Preparation 3

Table no: 1: Implementation schedule

It is necessary to obtain permanent Registration Certificate from the concerned District Industries
Centre after commencement of commercial production.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 12


6. TECHNICAL ASPECTS

AEDVs combine autonomous driving, electric propulsion, and real-time communication systems.
The main technical areas covered include:

Vehicle Design and Engineering


• AI and Navigation Systems: Computer vision, LIDAR, and GPS systems enable precise
navigation in complex urban environments.
• Battery and Electric Drive: High-capacity batteries support the operational range required
for multiple deliveries per charge.

Material Selection and Safety


• Lightweight, Durable Materials: Aluminum and carbon-fiber-reinforced plastics reduce
weight, enhancing efficiency.
• Safety Features: Redundant sensors, emergency stop functions, and safe delivery protocols.

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).

Production Capacity (per annum):


Quantity 324 Nos.

Value Rs 13,51,00,000

Motive Power 150 HP (Approx.)

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page 13


Pollution Control:
The manufacturing/fabrication of bus body does not pose any problem for pollution. However, proper
ventilation is to be done in shop floor area and painting area. Provision for pollution control equipments
has been made in this Project Profile.

Energy Conservation:

Suitable energy efficient motors are to be used on proposed machines with provision of recommended
shunt capacitors.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 14


7. FINANCIAL ASPECTS AND ANALYSIS
Capital Investment

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.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page 15


Additionally, ₹2,70,00,000 is allocated for working capital to cover initial operating expenses, such as
raw material procurement and workforce salaries. Overall, the total capital investment is projected at
₹15,20,00,000, providing a robust foundation for efficient production and long-term growth.
.

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.

Maintenance and Overheads: Regular maintenance of production machinery, calibration of testing


equipment, and updates to software systems are essential to minimize downtime. These account for
5-7% of annual operating expenses.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 16


8. DETAILS OF COMPONENTS AND SERVICE SUPPLIERS

The manufacturing of Autonomous Electric Delivery Vehicles (AEDVs) depends on a reliable


network of specialized components and service suppliers to ensure high-quality, efficient
production. Key components like lithium-ion batteries, electric motors, LIDAR sensors, and AI
control units are sourced from leading manufacturers for advanced performance and durability.
Lightweight materials such as aluminum and composites enhance efficiency while maintaining
structural strength. Service providers support software integration, autonomous system calibration,
and charging infrastructure setup. These collaborations ensure the vehicles meet strict safety and
environmental standards. A streamlined supplier network enables cost-effective and sustainable
production.
The Key Components and Suppliers in the machinery components and the testing equipments are
tabulated below:

Table no: 3: Key Components and Suppliers

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 17


Table no: 4: Workforce and Monthly Expenditure

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.

It is calculated on the monthly basis.

Table no: 5: Monthly Utilities and Overheads

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Pag 18


Table no: 6: Balance Sheet Example
he power and water utilities which are utilised constitute a total of Rs.2,10,000 collectively, which is on
monthly basis.

The total Annual Operational Costs is tabulated below.

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.

Table no: 8: Revenue Projections

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 19


Profitability:

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

Table no: 9: Rate of Return

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 table below explains the break-even point incurred:

Table no: 10: Break-Even point

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Pag 20


9. CONCLUSION

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.

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 21


10. REFERENCE

1.SAE International
Title: "Guidelines for Safe Deployment of Automated Driving Systems in Urban Environments"
Link: [https://www.sae.org](https://www.sae.org)

2. McKinsey & Company


Title: "The Future of Last-Mile Delivery: Transitioning to Sustainable and Autonomous Systems"
Link: [https://www.mckinsey.com](https://www.mckinsey.com)

3. International Energy Agency (IEA)


Title: "Global EV Outlook 2024: Trends and Projections in Electric Mobility"
Link: [https://www.iea.org](https://www.iea.org)

4. Velodyne LIDAR Inc.


Title: "The Role of LIDAR in Autonomous Navigation Systems"
Link: [https://www.velodynelidar.com](https://www.velodynelidar.com)

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)

9. Frost & Sullivan


Title: "Market Analysis of Autonomous Delivery Vehicles: Trends and Forecasts"
Link: [https://www.frost.com](https://www.frost.com)

10. International Journal of Automotive Engineering


Title: "A Study on Electric Delivery Vehicles for Last-Mile Urban Logistics"
Link: [https://www.ijautoengg.org](https://www.ijautoengg.org)

23-24 Dept. of Automobile Engineering, DSCE, Bengaluru, 78 Page No: 22

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