Is the Indian EV sector prepared for growth?

Hi friends 👋,

Happy Wednesday and welcome to the 14th edition of Weekly Olio - your weekly dose of curated content with a tinge of a thought piece (yes, we mean Publisher’s Parmesan here). 🤭

Many thanks for all your support and feedback so far, we hope it continues the same in the coming days and weeks. 😊 

Today’s, Publisher’s Parmesan covers the Indian EV sector.

Over the last few years, the Indian EV space has seen sustained investment from a lot of stakeholders. 2023 could finally be the year when we see an inflection in EV adoption with all of these efforts coming together. We explore the key growth drivers and what would be needed for EVs to really take off.

Let’s start with the curation first.

The Quote󠀢 💭

The Tweet 🐦

Starting with a single product is like being a superhero with just one power. But as you grow and expand, you need to gather more powers to save the day - err, I mean, stay competitive in the market.

The transition from a product-focused company to a platform with multiple adjacent products can be a challenging one, but it is often necessary to stay competitive and meet the changing needs of customers. By thinking about how to evolve from a product to a platform, companies can not only grow their business but also create new opportunities for innovation and development.

It's fascinating to see how some of the most successful software companies have made this transition and leveraged the power of a platform to drive their growth and success. This thread is a valuable resource for anyone interested in learning about how companies can evolve and thrive in the rapidly changing tech landscape.

The Infographic 💹

Investors seem to have finally figured out that Tesla isn't just a regular carmaker, it's a tech firm in disguise! Or at least, that's what they thought. The recent share-price tumble suggests that they've realized that maybe, just maybe, Tesla isn't going to conquer the world after all.

But let's be honest, it's not like Tesla was ever going to take over the world in the traditional sense. They were going to do it with their fleet of electric vehicles, shooting for Mars, and building solar roofs. Who needs world domination when you can have a corner of the universe, right?

So, to all the investors who were counting on Tesla to take over the world, it looks like you'll have to settle for the corner of the universe instead. But hey, it's still a pretty impressive feat, if you ask us!

Agree? Disagree? Let us know by replying to this email.

The Short Read 📝

6 global creators who broke through in 2022 - by Rest of World

The rise of social media platforms has enabled creators from all over the world to capture global audiences. From Khaby to Charlie D’Amelio, there is no dearth of internet superstars. This article spotlights six creators who broke through in 2022.

A Kazakhstani hype-house star. A beauty guru mired in scandal. A South African anime cosplayer. Follower counts aside, each — in their own way — made a mark on their respective creator spaces.

The Long Read 📜

How Spotify’s Wrapped campaign for 2022 came together - by It’s Nice That

Spotify’s year-end Wrapped campaign is one of the most enduring marketing campaigns. It is one of the most shared marketing campaigns globally.

This article is a journey through time and design, exploring the process behind creating the visual identity of the world's most anticipated year-end marketing campaigns. The 2022 Wrapped campaign may look simple on the surface, but don't be fooled - there's a lot more to it than meets the eye.

Designing the perfect visual identity for a marketing campaign is no easy feat, it's like baking a cake with layers upon layers of design goodness. And, just like a cake, it takes time to make it just right. The design work for Wrapped starts as early as the summer sun, with the team slaving away to make sure the content is ready for its November launch.

So, the next time you see a seemingly simple visual campaign, remember that there's a lot of hard work and creativity that goes into making it happen. And, in the case of Wrapped, it's like a cake with all the trimmings, but with a little extra design magic. Delicious!

Publisher’s Parmesan 🧀

Is the Indian EV sector prepared for growth?

2023 will be a defining year for the Indian electric vehicle industry, with policy shifts and increased investment driving growth.

Whether it is in China or the US, electric vehicles are the new craze. With Tesla leading the charge, a whole host of auto manufacturers have jumped onto the EV bandwagon. India is no different. As per a Bain and Company report, electric vehicles are expected to make up as much as 35-40% of total vehicle sales by 2030.

In most global markets, the inflection point for EV adoption came with the confluence of several factors - government support, investment by OEMs, competitive pricing and customer acceptance. India might be on the cusp of hitting this inflection point thanks to the continued investment in the EV sector over the last few years.

While most developed countries adopted a car-first approach towards the adoption of EVs, India is likely to be different. Given the poor city infrastructure and lower personal incomes, the transition to EVs is likely to be driven by two-wheelers like scooters, mopeds and bikes. This is driven by the lower cost of ownership, limited need for specialised charging infra and significant investments by both startups and industry leaders. Personal cars are likely to play catch-up given the higher price point versus ICE cars and the limited charging infrastructure in the country.

Drivers for growth

Policy shifts, the falling prices of batteries and growth in charging infrastructure would be critical to accelerate the shift towards EVs. In 2022, the mobility sector raised a total of $885M led by Ola Electric and Ather Energy. This investment pace is likely to continue into 2023 as well - braving the funding winter. In a value-conscious country like India, the adoption of EVs is likely to be driven by affordability.

There are five key areas where we can expect significant movement in 2023 to accelerate EV adoption in India:

• Regulatory Clarity:

  • The Faster Adoption and Manufacturing of Electric Vehicles (FAME) and the National Electric Mobility Mission Plan have been guiding regulatory thinking for the last couple of years.

  • Most players are still waiting for clarity on regulations around battery swapping and independent charging infrastructure.

  • Announcements in the 2023 Budget around reducing duty for the import of machinery for manufacturing batteries are a welcome move but more needs to be done.

• EV Infrastructure:

  • 2023 is likely to see large investments in building out public charging infrastructure.

  • Oil companies like Shell and IOCL have reaffirmed their commitment to helping build charging infra. Jio-BP has already announced partnerships with Citroen and Nexus Malls to build charging stations. The expansion of Taiwanese battery-swapping player Gogoro to India is highly anticipated.

  • It is estimated that more than 4000 charging and swapping stations will be built in India in 2023 - this should reduce charging anxiety to some extent.

• Battery Pricing:

  • The single biggest cost for manufacturing EVs is the pricing of battery packs which in turn leads to higher pricing for EVs compared to ICE vehicles.

  • Given the global supply chain challenges, battery pricing is likely to remain elevated through 2023. The Indian govt. is pushing for the localisation of battery production to cut import dependence.

  • While experts suggest that supply chain issues have bottomed out, high prices of key inputs like lithium carbonate remain an area of concern. In the long run, battery prices need to fall by 20-40% to make EV ownership attractive.

• Adoption in tier 2/ 3 cities:

  • As early signs show, smaller cities are beginning to lead the charge on electric two-wheelers.

  • The ability to charge at home and lower price points have been key in luring these customers. OEMs will need to build sustainable India-specific business models to further penetrate these cities.

  • Several NBFCs have already created specialised products targeting these markets. Incumbents like Hero Electric and Okinawa scooters which have a strong distribution base in tier 2/3 India are likely to emerge as leaders.

• Safety regulations:

  • There has been a slew of well-publicised safety incidents involving EVs across India.

  • As the industry matures, stronger safety and testing guidelines would need to be enforced by the regulators to quell customer concerns.

  • The Government has introduced a set of battery safety standards in 2022 - while this will impact manufacturers in the short run, it is likely to help build more confidence in consumers over the long run ultimately leading to faster adoption of EVs.

The sustained investment by various stakeholders into the EV ecosystem is likely to unlock a revenue pool of almost $100B by 2030 translating into a profit pool of $8-$11B. These new revenue pools will be very different from today’s automotive revenue pools.

We will see the emergence of new players, startups and OEMs. Several new EV-specific segments (cell manufacturing and battery packaging, BMS, mechatronics, thermal management, telematics, charging and swapping, and e-mobility) will emerge and scale. Incumbents will be forced to either adapt to the changing landscape or be pushed to the sidelines in the new paradigm.

India’s automotive market is on the cusp of full-scale transformation. 2023 could be the year when efforts from all stakeholders converge to create a new inflection point for the EV ecosystem. 2023 will be a defining year for the Indian electric vehicle industry, with policy shifts and increased investment driving growth.

That's a wrap folks! We hope you enjoyed this week's edition of Weekly Olio like a warm blanket on a cold winter day. But, if you're feeling extra cozy and can't be bothered to move a muscle, don't worry, we got your back! ⛄🦥

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Till then, stay warm and have a wonderfully lazy and productive week!

Peeyush and Mohit

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