Future of mobility | Mahindra War Room 2013 | North Zone Winners

Mahindra War Room
2013
Business Strategy for
‘Future of Mobility’
Pulkit Bohra M106/12 Pulkit.bohra12@iimranchi.ac.in 2nd Year
Pulkit Mathur M107/12 Pulkit.mathur12@iimranchi.ac.in 2nd Year
Rahul Gupta M108/12 Rahul.gupta12@iimranchi.ac.in 2nd Year
Tarun Gupta M044/12 Tarun.gupta12@iimranchi.ac.in 2nd Year
Submitted by:
Team Mavens, IIM Ranchi
Members:

2
Executive Summary
Mahindra
Redefining
Future of
Mobility
Individual
Transport
Mixed
Transport
Public
Transport
• Fuel Price
• Govt.
Mandates
Congestion
Connected
Driving
Challenge 1
Challenge 2
Mega Trend
2 Wheeler: Mahindra should create a niche with high
speed e-bike
3 Wheeler: Mahindra can trigger next big disruption in
Tier 2, 3 mass transport by organized e-Rickshaw sales
4 Wheeler: EVs over PHVs is the long term bet
— Concern 1 (Price): Mahindra should lease and not sell
battery to reduce upfront cost
— Concern 2 (Range, Charging Time): Mahindra to enter
into PPP agreements for battery swapping stations
Car Sharing: Mahindra should pioneer Free Floating Car Sharing
Car Rental: Use Social Media to reach Target Customers for Watts-Up
Use apps like Folksvagn to give car pooling services to e2O customers
OEM Partnerships: Partner with Qualcomm / Delphi for
Enabled Equipment
Services Provider Partnership: Partner with IBM
Telematics Services Provider with an innovative
implementation model
New Revenue Model: Pricing Innovation; Payer
Innovation; Package Innovation
TRANSPORT MEDIUMS CHALLENGES & TRENDS RECOMMENDATIONS

Team Mavens , IIM Ranchi 3
11h50
Arrival at the clients
premises
• Calendar in
Smartphone Activated
• Automatically Calls
Driverless Car
11h20
Working in office
Preparing for the
next client meeting.
Your location aware smartphone
Detects meeting at 12’o clock and
calls driverless cars to pick you up
Is this a
Science Fiction ?
11h00
Preparing for
Client Meeting
Your smart car’s interactive
dashboard shows you the best
restaurants around & books a
table for you
Rerouting
“Traffic Jam
Ahead”
A car ahead of you notifies your car that a truck
ahead has lost its load and is causing traffic jam.
Your car in turn calculates a difference route.
Mobility Solutions – Science Fiction or Reality???

Ride sharing
Car sharing
P2P car rental Smart parking
Telecommunicating
Real time Traffic
management
Incentives (Discounts,
Travel vouchers etc.)
Integrated fare
management
Or
the Future of Mobility?
Travel
Assistant
apps
Car sharing
Multi Modal
transportation solutions Bike sharing Autonomous
Vehicles
Connected user
charging
Road user
charging
Real-time traveler
information
Mobility Solutions – Science Fiction or Reality???

5
Information
Collection
Secondary Research
 Leveraged access to 10+ databases with IIM Ranchi Library
 Studied research reports, company annual reports, analyst reports
 Drawn inferences from published articles in the media
Primary Research
 Interviews with rickshaw drivers, passengers & NDMC heads
 Project Director NDMC – OM Prakash Mishra; Alok Bhatacharya, Director Planning,
UTTIPEC
 Field survey conducted with 174 respondents
Analyzed data gathered to determine the
following:
 Market Dynamics
 Drivers and Restraints in the Market
 Critical Success Factors
Future Projections
 Growth Trends from the industry reports
 Stakeholder Views
Quality Check &
Information
Analysis
 Five objectives analysed in detail
 Recommendations given based on the analysis done in the initial sections
Case Objectives &
Recommendations
Research Methodology
Team Mavens , IIM Ranchi

Case Study Objective – I
Mahindra
Redefining
Mobility

ROAD SENSORS
Electric
charging
infrastructure :
Smart grids
Automatic Toll
Payment
Systems
Gets on-spot
offers from
shops
Efficient
parking &
charging
Choose the
optimised path
Accident &
medicals
POINT A POINT B
TOLL
BOOTH
FUTURIST CAR CHARGING
STATIONS
SHOPPING COMPLEX /
FOOD MARTS
GPS TRACKING
&
CONNECTIVITY
MULTI MODAL
TRANSPORTATIONS
HOSPITALS
& EMERGENCY
SERVICES
PARKING SYSTEMS WITH
CHARGING IN EACH SLOT
SERVICES & REPAIR SHOPS
Future Not Far Away: Moving from point A to B
Please Watch In Full Screen Mode
Click to start ……

Mahindra
Redefining
Mobility
Case Study Objective – II

9
People looking for new modes of Mobility: Rising Fuel Costs, Govt.
Mandates & Rising Incomes in Developing World
Current and proposed global fuel
economy standards
Rising middle
Class Income
in India
Growing Oil
Demand
Alternative
Source of
Fuels
Mass
Transport
Rising
Congestion
Car Sharing
New Trends
2013
Source Unplugged: Electric vehicle realities versus consumer expectations, Deloitte; International Energy Agency

Beijing, China:
Public, Large, Emerging
What works?
Car ownership growing at a CAGR of
12%
What does not work?
Mean travel time to work of 52
minutes
68 transport related deaths per Mn
Key
Modal Split- Individual,
Public
City Size- Large,
Small
Prosperity- Mature,
Emerging
Hong Kong:
Public, Large, Mature
What works?
Highly developed multimodal
mobility system. Smart card
penetration at 2.9 cards per citizen
What Does not work?
Absence of car mobility sharing
Baghdad, Iraq: Individual, Large,
Emerging
What works?
High number of registered vehicles
(0.55 per capita)
What does not work?
No clear mobility strategy, no car
and bike sharing, no smart transit
cards
Atlanta, USA: Individual, Small,
Mature
What works?
Extremely low journey-to-work time
at 26.6 min
What does not work?
Extremely skewed modal split
towards personal cars (95%)
Off-scale carbon emissions
Vienna, Austria:
Public, Small, Mature
What works?
Very high usage of public transport
What does not work?
Zero penetration of mobility cards,
very low rate of car sharing
Toronto, Canada:
Individual, Large, Mature
What works?
High satisfaction with transport
related facilities
What does not work?
Negligible smart card penetration,
high carbon emissions
Global Mobility Models – Identifying the Game Changers
Sources: Future Of Urban Mobility, Arthur D Little

Case Study Objective – III
Mahindra
Redefining
Mobility

Type Of Vehicle Current Future
2 Wheelers
E-Rickshaws
Mass Transport
Electric Vehicles
Car
Sharing/Pooling
Current Future Current Future
METRO TIER 1 TIER 2
KEY
TAKEAWAYS
Show rapid growth in:
• Electric Vehicles
• Car Sharing/Pooling
• Car Sharing/Pooling
• E-Rickshaws
Mass Transport & 2-Wheelers have sustained in all three regions
Changing Trends: Modes Of Mobility In India
Source : EV market in India, Netscribes; Future of mobility (IBM)

Case Study Objective – IV
Mahindra
Redefining
Mobility

Future
Of
Mobility
Urbanization
SMART Cities
Zero Emissions
Zero Accidents
E-Mobility
Generation Y
EFFECT
• Increased population
• Increased traffic
• increased parking issues
CAUSE
• Currently very expensive offerings – Beyond the reach of
common man
• Increased shortage of fossil fuels
• Shift towards model of “Pay per Use” rather than own a
vehicle.
• Web connected vehicles.
• Increased pollution & stress on green global
• Increased trends on life preservation technology
hence more time
delays.
Tracking Causes Affecting New Mega Trends For Future Of Mobility
Source Strategic Analysis of the Future of Global Urban Mobility, Frost & Sullivan

CHALLENGES IDENTIFIED
GOVERNMENT
MANDATES ON
FUEL EFFICIENCY
CONGESTION
SAFETY
CONNECTIVITY
KEY TRENDS IDENTIFIED
Future
Of
Mobility
IDENTIFIED TWO KEY
CHALLENGES
IDENTIFIED TWO
KEY TRENDS
By leveraging on the
identified “Key Trends” to
mitigate the risks of
“Industry Challenges”
Mahindra can redefine
the Future of Mobility
Mahindra Redefining The Future Of Mobility
Source Strategic Analysis of the Future of Global Urban Mobility, Frost & Sullivan

Mega Challenge 1
Rising Fuel Costs
Government Mandates on Fuel Efficiency
Recommendation 1
PHV looks good in Short Term; EV is the Long Term Bet
2 Wheelers
3 Wheelers
4 Wheelers
2W market Crowded; Mahindra can differentiate with Electric Strategy
Organizing the e-Rickshaw market could be the Next Big Disruptive
Innovation in Tier 2-3 cities’ Mass Transportation
Mahindra should Lease batteries to Reduce Upfront Cost; PPP is the best
way out to develop charging infrastructure

Electrotherm
invested in Electric 3
wheeler and Hybrid Bus.
Electric
3-wheelers &
Mass Transport
Lohia
invested in developing a
Electric 3 wheeler.
Electric
2-wheelers,
production
capability &
strategic alliances
Hero Eco has acquired
Ultra motors based in
London.
Avon has a strong
network of dealers & Sub
dealers (bicycle).
Ampere has products in
Electric 2 wheelers,
Puller, Trolley & Golf car
segment.
All competitors operate
in electric 2-wheelers
segment
Key Takeaways for Mahindra
Can encash upon the already
existing acceptability towards
of Electric 2-Wheelers
Should invest in development
of hybrid mass transportation
vehicles
No Indian competitor in
Electric 4 wheelers segment
No competitor focusing on
building charging
infrastructure.
Competitors’ strategy for 2-3 W EV segment
2-Wheeler Electric Rickshaws Electric VehicleElectric Vehicle
Source Electric Vehicle Market India, Netscribes

(1) Cumulative figures for the 5 Year Blocks
Market
Share –
Segment
Wise
Market Size
& Growth
Consumers
Preference
REASONS TO ENTER
HIGHEST SELLING E-VEHICLE
EXPANDING MARKET
WIDELY ACCEPTED
HIGH GOVERNMENT
INCENTIVIZATION
1
0
500
1000
1500
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Units ('000)
+59.9%
4 Wheelers
1%
2 Wheelers
95%
3 Wheelers
1%
Others
3%
55%
45%
Consumers preferring
battery operated 2
wheelers than ICE
Others
India Rides on 2 Wheelers: Opportunity for Mahindra to differentiate by
targeting the High Speed e-Bikes
2
3
4
2-Wheeler Electric Rickshaws Electric Vehicle

Pradeep Patra, Electric Rickshaw
driver, South Delhi
I earn around Rs.600 per day
now which is much more than
what I used to earn while driving
a manual rickshaw.
Lack of clarity on
regulations
Uncertainty with
respect to licensing
costs.
Competition from
local Rickshaw
manufacturers
No data on how many
Electric rickshaws
have been sold till
date.
High acceptability rate
because of
• Greater earnings for
rickshaw walas
• Cheaper for
passengers
• Women can also
drive E-Rickshaws
Encouraging
government initiatives:
NDMC to provide
charging stations at
Chattarpur station, Delhi
• Initiatives to develop
Solekshaw (Solar
Rickshaw)
• Opportunity for PPP
Risks Opportunities
e-Rickshaws: Next Big Disruptive Innovation in Tier 2-3 Mass Transport
Mohammed Neem Qureshi
Passenger
The cycle rickshaws after 11pm
charge Rs.30 to Rs.40,” where as
“The E-rickshaws drop me for
Rs.10 outside my house.”
Mahindra should Organize this newly born market with a Quasi Brand
Source : Primary Research in Delhi

20
Next Generation Vehicles: The Competition Is Tough
Where do EVs stand among the
new generation vehicles?
What are the
consumer
expectations?
What are the
technical hurdles?
Solar
PHEV
HV
EV
FCV
2
1
3
?
??
Fuel Cell
Vehicles
Solar Battery
Operated
Vehicles
Hybrid Vehicles
Electric
Vehicles Petrol Hybrid
Electric
Vehicles

Existing needs Potential needs
Driving Range
Convenient /
Comfortable
Price Safety/Reliability New value added
HV
￭ Almost same or better
as ICEV
￭ Nothing changed from
ICEV
￭ High upfront cost but
low running cost due
to improved fuel
efficiency
￭ Almost same as ICEV ￭ Almost same as ICEV
EV
￭ Shorter driving range
than ICEV
￭ Fewer charging
stations than gas
stations
￭ Much more expensive
than ICEV
￭ Cheaper running cost
￭ Some safety issues for
battery are still to be
addressed
￭ Zero-emission
￭ Usage as a storage
PHV
￭ Almost same or better
as ICEV
￭ Fewer charging
stations than gas
stations but PHEV can
be driven by gasoline
￭ More expensive than
ICEV but better
running cost due to
better fuel efficiency
￭ Some safety issue for
battery are to be
addressed
￭ Zero-emission during
electric driving mode
FCV
￭ Almost same as ICEV ￭ Almost no charging
station
￭ Much more expensive
than ICEV
￭ Cause of Concern ￭ Zero-emission
21
Comparative Analysis: PHV good for Short Term; EV is the Long Term Bet
Source Electric Vehicle Market India, Netscribes

Consumer considerations before
buying an EV ( priority)
Vehicle price
Charging Time
Reliability (Range)
Convenience to charge (Infra)
Style and appearance
Fuel Costs
Government incentives
Environmental impact
Popularity
PRIORITY
Target Cities:
Ajmer, Jaipur, Lucknow &
New Delhi
People Approached: 280
Eligible Responses: 174
Eligibility Criteria:
Car Owner,
Willing to purchase one in
next 6 months
Survey was conducted to gauge Consumer Preference for BEVs

Survey Results: Four Major concerns for EV in the Indian Market
High Charging
Time
Price
Premium
Driving
Range
Aesthetics

e2O – Has it hit the nail on its head ?
e2O Charge Time: 5 Hrs
Just over 24% of
respondents felt
comfortable with charge
time of more than 4 hrs
e2O Price: ~ 6 lakhs
Nearly 40% of the
respondents are willing to
pay this price
24%
27%
21%
15%
13%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total 8 hr 4 hr 2 hr 1 hr 30 mins
Acceptable Battery Charging Time
High Charging
Time
Price
Premium
Driving
Range
Aesthetics
41%
34%
15%
10%
Willingness to Pay for an EV, INR
< 4 Lakh
4 - 7 Lakh
7 - 9 Lakh
> 9 Lakh
High Charging
Time
Price
Premium
Driving
Range
Aesthetics
Customers are Willing to Pay a Premium if Other Concerns are Rectified

Aesthetics
Low Awareness about e2O
73% respondents did not
like looks of Reva
e2O – Has it hit the nail on its head ?
e2O Charge Time: 80 kms
Only 16% respondents were
comfortable with the driving
range of 80 kms
16%
42%
79%
98%Expected Driving Range
80 km 160 km 240 km 320 km
High Charging
Time
Price
Premium
Driving
Range
Aesthetics
Customers have Range Anxiety and look for Better Aesthetics

Mapping Key Survey Parameters with Recommended Solutions for each
Parameter
High Charging
Time
Price
Premium
Driving
Range
Aesthetics
Leasing Instead Of Selling Batteries
would reduce upfront cost
Progressive innovation across R&D,
Procurement and After Sales can help
pass cost advantage to customers
Battery Swapping will help remove
Range Anxiety and issue of High
Charging Time
Mahindra should adopt PPP
mechanism to set charging
infrastructure
SOLUTIONS
KEY SURVEY PARAMETERS
1
2
3
4

heavy
UPFRONT PAYMENT
for electric vehicle
INR 6 Lakh
OTHER ISSUES
With electric
vehicle
• Driving range
• Charging time
• Charging
Infrastructure
Considerations Response Reasons
Customer Responses to EV Adoption
Lease And
Don’t Sell
Battery
Solution To All the
Problems
BEV Gasoline
Energy Consumption 100 Wh/km 15 km/L
Charging Efficiency 90% 100%
Net Energy
Consumption
111 Wh/km 15 km/L
Fuel Cost 4/kwh 70/L
Driving Cost (Rs./km) 0.44 4.66
Daily Use 60 km 60 km
Daily Running Cost 26.4 279.6
Yearly Running Cost Rs. 9,636 Rs. 1,02,054
Battery Lease Rs. 5,000 pm
Savings/Year Rs. 32,418
Total Car
Cost
Battery
System
Cost
e2O on-road price
~ Rs. 6 Lakhs
Battery Price
Component
~ Rs. 3 Lakhs
Leasing the
battery reduces
upfront costs by
up to INR 3 Lakhs
A
Yearly savings of
INR 32 thousand
economically
justifies the use of
Electric Vehicles
B
Leasing Instead Of Selling Batteries: Reduce Upfront Cost1
Source Survey Analysis, Mahindra e2O website

R & D Procurement & Production After Sales
CATHODE
Mn(LiMn2O4)
Mn(LiMn2O4)
LiFePO4
• IDENTIFIED 3 DESIGNS IN BATTERIES
FOR EV
Mass production
• Scale merits
• Safety
Balance
• Cost reduction
• Energy density
• Safety
Cost leadership
• Cost reduction
• Safety
STRATEGY
Mahindra should:
Adopt a Cost Leadership policy to gain
higher customer penetration in the
starting
OEMS
Non
OEMS
Joint
Venture
AESCPrime
earth EV
energy
Deutsche
Accumoti
ve
Mahindra should:
• Tie up with LiB suppliers through
Strategic alliance among OEMs & other
suppliers
• Brings Scale Merits
• Enable coordinated decision making
Re-fabricate Resell
Re-fabrication of
used battery to
meet client’s need
post dismantling.
Resell of used battery
as electric storage
system, back-up
battery, equalization,
etc.
Reuse
Nissan has scheme and technology for
reuse of used battery.
Mahindra should try :
• Recovery of rare metals
• To pass cost advantages to consumer
ALTERNATE SOLUTIONS : Progressive Innovation For Battery Cost Reduction2
Source: Company websites; Nikkei Japan

29
Deliver charged batteries
Collect used batteries
Delivery station
Large battery
distribution
station
Battery
swapping/
charging station
Battery
swapping/
charging station
Battery
swapping/
charging station
Delivery station
Battery lease fee
For charged batteries
Charged
Battery
General
consumer
Mahindra can reduce vehicle price for battery cost with battery leasing – Can pass cost advantage to customers
• Enables controlled charging at Battery Distribution Station – Longer battery life
• Issue of Charging time is resolved
• Huge Upfront Expenditure
Proposed Battery Swapping Process Map
Battery Swapping reduces Charging Time and Reduces Cars’ Upfront Cost3

30
Potential Mechanism in India: PPP with Consortium of OEMs and Battery Swapping Station Company
Automotive OEM
Consortium
Government
(Public Body)
R&D and Production
Payment
Battery Swapping
Company
Monetary
Support
EV Consumer
Revenue
Investment
Battery Swapping
Station
PPP for setting up Charging Infrastructure: Mahindra should form a
Consortium with other OEMs
4

31
Opportunity Matrix for EV Stakeholders
Technology Finance Markets
Sustain R&D
Investments
Coordinate
International R&D
Public/Private
Support Fleet
Procurement
Harmonize
Standards
Private
Develop Vehicle
Financing Markets
Identify sustainable
EVSE Business
Models
Increase Model
Diversity
Reduce Battery Costs
Enhance Performance
Address Common areas of
need
Support Interoperability
Demonstrate proof of concept
Explore Public/Private
acquisition models
Traditional and battery
only leasing
Develop Re-sale Market
Define clear-revenue
models
Create retail partnerships
Introduce differentiated
range, styling and
functionality
Int’l cooperation on
harmonization
Technology Finance Markets Policy
Spread costs to accelerate
growth
Areas of Need
Stakeholder
s
Sources: KPMG Report on Future Of Mobility

Mega Challenge 2
Rising Congestion
Recommendation 2
Car Sharing
Car Rental
Mahindra should pioneer Free Floating Car Sharing
Mahindra should use Social Media to reach its Target Customers for Watts-Up
Mahindra should associate with Apps like Folksvagn to give an option of Car
Pooling to its e2O customers
Mahindra should pioneer in Pay per Use of Cars
in Indian Market

“Mobility As A Service”
MAAS
station
station
Car sharing stations
@ public parking lots
•To sell more EVs to different consumers who cannot be reached by their
conventional vehiclesCapturing EV Market
•To take EV sharing as a trial-drive opportunity to its potential customers
(providing them the experience of driving EVs)EV Trial Drive for Consumers
•To collect usage and feedback of EVs from EV sharing usersConsumer Feedback for EV
•To improve CSR by introducing more EVs for the society’s well-beingsCSR
Additional
Benefits
Addressing the
challenge of
congestion
Car Sharing Car Pooling Car Rental Services
￭ Point to Point car sharing
￭ Facility of online booking
￭ Pick up and drop at any
station
Strengthen the existing rent-a-Reva offering with tie-ups with Easy cabs which is one of
the most popular rental service in India
$3Bn Dollar Rental car market in India according to Forbes
Expand via tie-ups with third party app providers to offer car pooling solutions
￭ Tie ups with web and sms-based pooling systems (mykoolpool.com in Mumbai ,
btis.in/carpool in Bangalore)
￭ Associations with employers to promote car pools in commercial and official
complexes
Sources: Unplugged Reality Vs. Consumer Expectations, Deloitte Report

One time registration fee per person 1000
Income from Operations
Daily Rentals per car @INR 200/hr for 8 hrs
400
Revenues per month for 200 cars (INR Lakhs)
96.0
Daily operating cost per car of EV for 120km
@15km/hr
52.8
Operating cost per month for 200 cars (INR Lakhs)
3.17
Monthly Car parking lease rate (INR Lakhs) 5.3
Operational Profit (INR Lakhs) 87.49
Initial purchase cost for 200 vehicles (INR Lakhs) 1400
Breakeven in months 16.1
1
34
Launch “Mahindra Mobility Services”
•Initial fleet of 200 cars to start off
•Start with Tier-1 cities like Delhi with 6 pickup points- CP,
South Ex, Dwarka, DLF Cybercity Gurgaon, Noida, Punjabi
Bagh to cover an area of approx 1000 sq Km.
Set-up
Rentals, Cost
and Profit
•Tie-ups with third party app providers to help locate or book
a car in advance online
•Tie-ups with banks to develop payment system
Tie-Ups
All figures in INR
Become a member
Register at mahindra.com and receive your
member ship card via email
Locate a Vehicle
Use the car finder at mahindra.com or a
smartphone app to locate a Mahindra EV. You
can use any vehicle spontaneously or book a
car in advance online or by phone
2
Access the vehicle
Walk up to the car, hold your membership
card against the card reader on the
windshield and the doors will unlock. Enter
your pin and rate the condition of the vehicle
3Drive
Take car key which is showed next to
the touchscreen unit, start the car and
drive off. Drive as long as you want
4
Finish your trip
Complete your trip in an available public parking space within the car home area.
Charges are calculated by the minute and will be debited from your credit card
after you exit the vehicle. Fuel, insurance, maintenance and parking are included
at no additional cost
5
Sources: car2go.com
A revenue
generating
implement
ation plan
Implementation Plan For Point To Point Free Floating Car Sharing

Mega Trend
Rising Congestion
Recommendation 3
Equipment Manf.
Partnerships
Services Provider
Partnership
New Revenue
Model
Partner with Qualcomm / Delphi for Enabled Equipment
Partner with IBM Telematics Services Provider with an innovative
implementation model
Pricing Innovation; Payer Innovation; Package Innovation

36
Also, the user data
collected from these
offerings will be
unique & very
valuable
DRIVERS
• User profiling
• Traffic prediction & advanced
routing
• Location based info
• Remote vehicle control
• Emergency & breakdown
FLEET OPERATOR
• Charging & billing
• Performance Monitoring
• Asset monitoring & planning
• Asset maintenance
MOBILITY PROVIDER
• Intermodal travel
• Car sharing
• Pay-as-you-drive
• M-commerce
• Marketing & sales
• Customer, Driver behaviour
data
3rd PARTY
• Analytics reporting
• Performance planning
• Business process integration
• Service offerings
Portfolio of compelling value added services : Market Differentiator For Mahindra Automobiles
Changing Mahindra’s Customer Experience: Bringing Advanced Telematics
Team Mavens , IIM RanchiQuest for Telematics 4.0, EY Study

37
CURRENT
STATUS
FUTURE
PROPOSAL
HARDWARE MANUFACTURERS
Delphi
Qualcomm
Motorola
Visteon
WIRELESS CARRIERS
CONTENT
PROVIDERS
TELEMATICS
SERVICE PROVIDERS
MAHINDRA OEMs
CURRENT TELEMATICS VALUE CHAIN
Mahindra has partnered with
Vodafone
HARDWARE MANUFACTURERS
Auto Suppliers
PDA Manufacturer
Handset Manufacturers
WIRELESS CARRIERS
TELEMATICS SERVICE PROVIDERS
Call centers
Content providers
Portals
MAHINDRA OEMs
Cars/Truck/Buses/2-wheelers
FUTURE TELEMATICS VALUE CHAIN
Mahindra should partner with
IBM for Telematics Services
Provider
Mahindra should partner with
Qualcomm or Delphi for Telematics
Enabled Equipment
These
Proposed Partnership
with IBM, and Qualcomm or
Delphi will prove to be
Mahindra Advantage In
Telematics Enabled
Vehicles
1 2
Telematics Value Chain : Picture To Be Completed By Mahindra
Team Mavens , IIM RanchiTelematics Position Paper, inCode 2001 ; Mahindra Information Desk

HARWARE
MANUFACTURERS
WIRELESS CARRIERS
TELEMATIC SERVICE
PROVIDERS
AUTOMOTIVE OEMs TELEMATICS
VALUE CHAIN
IBMQUALCOMM VODAFONE
38
Car Sharing Cars On Demand Pay as you Drive Concierge Services
VALUE
ADDED
SERVICES
Advanced Mobility Service Hub
INFRASTRUCTURE
Track & Alert
Remote Vehicle
Control
Point Of Interest
Handling
Emergency
Handling
Client data
Mgmt.
Offer
Management
Claims
Management
Planning &
Reporting
Vehicle data
Collection
Device
Management
Security &
Privacy
B2B2C Service
Mgmt.
SYSTEMINTEGRATION
ALWAYS ON VEHICLE – ALWAYS CONNECTED
© 2011 IBM Corporation23
Advanced Mobility Framework – Key Build/Buy/Partner Decisions
IBM Advanced Mobility Service Hub
Infrastructure
SystemIntegration
Web Portal /
User devices
„Always On“ Vehicle Connectivity
Value
Added
Services
Vehicle
Data Collection
3rd Party Data
Integration
Data AnalyticsB2B2C Service
Management
Device
Management
Security &
Privacy Mgmt
Application
Management
Offer
Management
Order
Management
Contract
Management
Client Data
Management
Accounting and
Billing
Claims
Management
Planning &
Reporting
Product Data
Management
Road side
assistance
Call Centers
Customer
Support
Backend
Systems
3rd Party
Content
Dealer
Backend
Social Media
Facebook,
Twitter
EV
Charging
Stations
P
Car on
Demand
Car Sharing
Intermodal
travel
Pay as you
Use
Concierge
Services
Fleet
Operator
Utilities
Govern-
ment
OEMs &
Suppliers
Insurance
Service
Provider
Stakeholders:
Business Models:
Remote
Vehicle control
Vehicle
reporting
Point of interest
handling
EV Services
Emergency
Handling
Track and Alert
other
services
Business
Core
Services
Technical
Core
Services
BUSINESS
CORE
SERVICES
TECHNICAL
CORE
SERVICES
CLOUD SERVICES
PARTNERSHIPS
Proposed Framework Of Mobility for Connected Vehicles
Team Mavens , IIM RanchiIBM GS - Automotive 2020

39
TELEMATICS : “A Revenue Model For Mahindra”
PRICING INNOVATION PAYER INNOVATION PACKAGE INNOVATION
Innovation in both – amount of
money charged & point of
transaction with customer.
Finding customers who are not
the ultimate consumers of the
product.
Expanding product & brand
value to new customer
segments.
Subscription
Variables
By-parts
Rentals
Bundled Vs. a-la-carte
Ad supported
Fee Based
Social Networking
White Labelling
Componentization
Mode Shifts
Brand Extension
Revenue Strategies help define what consumer wants, and offers flexibility & choice
Telematics : Mahindra’s Innovative Revenue Advantage
Advanced Mobility-IBM Automotive,2011 ; Automotive 2020-IBM

Business Models of Future Urban Mobility
“Google of Mobility”
“Dell of Mobility”
“Apple of Mobility”
• B2C: Integrated mobility services for end customers that provide a
seamless, multimodal journey experience
• B2B: Integrated, multimodal mobility solutions on a turn-key basis
targeted at cities and mobility service providers
• Basic Mobility related offering, e.g. Car or bike sharing, no
networking
• Also Disruptive technological solutions to make “Google’s” and
“Apple’s” Mobility models possible(e.g. drive-in-drive-out
transponder systems for garages
• Single point of access for mobility and supplementary
services(Identification , information, booking, payment)
• Focus on data volumes and penetration rates in population
Business Model Vision Insights
Integration Single point of access
What Are The Alternative Models For Mahindra’s Market Positioning ?
Team Mavens , IIM RanchiSources: Future Of Urban Mobility, Arthur D Little

Mahindra: The “Apple Of Future Mobility Industry”
For accelerated growth
Business Model Target Customers Offerings Core Assets & Capabilities Revenue Source
Mobility services platform
manager
 Traveller Community at
large
 Single point of access for
getting information,
planning, booking and
payment for a journey
 IT enabled platform
 Consumer Interface
 Supplier sourcing and
contracting
 Transaction fees
 Interest Income
 Advertising and chip
storage space leasing
Mobility chain integrator  Individual (high end)
traveller
 Personalized seamless
journey to get as fast and
convenient from A to B
 Brand
 Dense service network
 Partnerships
 Fee for service
Mobility solution provider  Cities
 Mobility chain
integrators
 Tailored, integrated,
multi-modal mobility
solutions on a turnkey
basis
 System integration and
contracting
 Public Private
Partnerships
 Case specific
Mobility Products and service
provider
 Traveller Community
 Cities
 Mobility solution
providers
 Stand alone, high-
performance, ease to
integrate mobility
products/services
 Technology leadership
 Open boundaries
 Case specific
Mahindra with a strategy of being “Mobility Chain Integrator” & “Mobility Solutions Provider” can become
The “Apple” of Mobility Industry In The Future
Team Mavens , IIM RanchiSources: Future Of Urban Mobility, Arthur D Little

Launch of
Reva
Launch of E2o
in India
Mahindra
acquired
REVA
Mass
Adoption of
Electric
vehicles
Participate in PPP’s to
setup basic
infrastructure
MaaS (Mobility as a
service) facilities like
car pooling car
sharing
Invest in
telematics for
enhanced services
Lease not sell
battery
AdoptionofElectricVehicles
Time
Normal Evolution
Disruptive Evolution
YoBykes
launched in
India
20042001 2010 2013 2015 2018
Electronic
Rickshaws
Disruptive evolution by Mahindra will quicken mass adoption of electric vehicles
and position Mahindra as a leader in the respective industry
42
1
2
3
4
5

Thank you for your time and attention!

Segmentation of primary modes of Transportation
Public
Transport
Rail Bus Taxi
Private
Transport
Car Motorcycle
Non-motorized
Transport
Bicycle Walking
Motorized transport services that
offer a shared mode of transport that
is available to the general public for a
price. This includes rail, bus, and taxi.
Motorized transport that
is privately owned by
individuals for their
exclusive personal use.
This includes passenger
cars, SUVs, MPVs etc
Transport that provides
personal and goods
mobility without the use
of a combustion motor or
battery . This includes
walking and bicycles.

EVs a means of New Transportation
Smart building,
Smart plant
Renewable energy
EV charger
Rechargeable battery
Smart Grids
Smart house
New
generation
parking
Personal mobility
BRT/LRT
New
transportation
Sharing system
Road sensor
Vehicle type
EV
Battery Charging
EVs get connected to a new
transportation
Change from stand-alone products
to networked products
Severe traffic congestion
Increased
population
Needs for city transportation
systems
Increased
CO2 emission
Needs for improvement

Aggregate Running and Operating Costs to be the Major Drivers
BEV Gasoline Electric Scooter Petrol Scooter
Energy Consumption 100 Wh/km 15 km/L 15.3 Wh/km 45 km/L
Charging Efficiency 90% 100% 90% 100%
Net Energy Consumption 111 Wh/km 15 km/L 17 Wh/km 45 km/L
Fuel Cost 4/kwh 70/L 4/kwh 70/L
Driving Cost (Rs./km) 0.44 4.66 0.07 1.56
Daily Use 60 km 60 km 60 km 60 km
Daily Running Cost 26.4 279.6 4.2 Rs. 93.6
Yearly Running Cost Rs. 9,636 Rs. 1,02,054 Rs. 1,533 Rs. 34,164
Yearly Maintenance Rs. 600 Rs. 2400
Major Repairs & Replacements Rs. 6,500 Rs. 2,500
Total Yearly Costs Rs. 8,633 Rs. 39,064
Savings/Year Rs. 92,418 Rs. 30,431

48
“Soon you will not be able to make
money anymore with cars that don’t
customer smartphones”
CEO, Premium Carmaker
“When we look at cars, we see
another smartphone”
CEO, Premium Telecom operator
What Is Telematics ?
Telematics
1.0
•Hands-free calling & screen-based navigation
Telematics
2.0
•Portable navigation & satellite radio
Telematics
3.0
•Introduction of comprehensive connectivity to
vehicle
Telematics
4.0
•Seamless integration of mobility & the web :
BIGGEST OPPURTUNITY YET
Target versions of
telematics for
automakers in 2013
What are the telematics
end-services?
How are telematics services
delivered?
Stakeholders
On Demand
Infotainment
On Demand
Infotainment
Safety &
Security
Diagnostics
Vehicle to
Vehicle
Other Services
Service delivery
infrastructure
User interface
Wireless network
(connectivity)
Customer support
Automotive sector Government
Telematics service
provider
Insurance sector
Information technology Telecom sector Device manufacturers Others
Vehicle independent services Vehicle centric services

Future of mobility | Mahindra War Room 2013 | North Zone Winners

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