Driving Towards A Greener Future

Motocorp.

Our Vision

Who We Are

ION Motocorp’s motto is to be a market leader in its segment in the next 5 years and to increase awareness about protecting the environment among Indian citizens.

Our vision is to have a cleaner and greener tomorrow by dedicating ourselves to a better future

Our Mission

• Ensuring Consumer Satisfaction• Highest Quality of Product• Return of Investment• Updating ourselves with the latest

technology in the field

As a start-up firm we will produce green bikes or fossil-fuel free bikes which will compete with the best in category and we will market them in the 6 most polluted and industrialised cities in the country.

Our Immediate Objectives

Our Values

The Green Opportunity

Treading the green way...

Up up and away..

Petrol woes

• The hike in petrol prices has encouraged people to look at alternative cheaper fuel powered vehicles

• The present consumer behavior is illustrated by the increase in demand for diesel cars with increasing petrol prices, while sales of petrol cars have shown weak or no growth

Swift Swift Desire Ritz Figo Indica0%

10%

20%

30%

40%

50%

60%

70%

80%65%

60%

45%

30%

70%75%

66%

55%47%

72%

2011(Q3 & Q4) 2012 (Q1 & Q2)

The Light Bulb Moment• Since the alternatives to petrol in 2 wheeler market are very low,

the sales of 2 wheelers have taken a hit

• Hence Introducing, ION MotoCorp electric bikes at this juncture as an alternative to petrol bikes gives the firm a distinct advantage

Towards Green World..

The First Step

A small survey was conducted to know • Are people ready to make conscious and smart decisions to

create a greener tomorrow?• Are they ready to replace their present mode of transport with a

greener one?• What their expectations are from a socially responsible

company

Survey Questionnaire

“Sense and Respond”

The Market Survey which was conducted gave us the following findings:

Age Group Avg. Speed (Km/hr)

Preferred Price (Rs)

Average Usage per day (Km)

Preferred Charging Time (Hrs)

15 - 18 25 20,000 20 – 30 3

> 18 50 60,000 50 – 150 6

And The Survey Speaks

• Understanding and meeting customers’ expressed needs• Segment 1 and Segment 2 product lineup is based on the survey

conducted to analyze the present customer needs

• Understanding and meeting customers’ latent needs• Development of segment 3 product lineup by the process of

probing, learning and innovation

Total Market Orientation Strategy

Reactive Approach

Proactive Approach

4 Ps

Product

Price

Place

Promotion

Marketing Mix

What we sell..

Product

• ION - Green Bikes catering to different segments• Three Variants:– Electron– Proton– Neutron

• Environmental Friendly• Runs on electricity• Sleek design• Speed up to 220 Km/hr• Usage per charge up to 120 Km• Charging time varies from 3 hrs to 9 hrs depending on the variant.

Product in a Nutshell

Electron

• Cost efficient variant• Suitable for ages ranging from 15 and up• Gearless operation• Does not require a driving license• 3 modes of operation:

– Cyclic mode : Powered by the user (recharge mode)– Pedlec mode : Rider is supported by the motor– Pure Mode : The drive power is purely the product of the

motor

Features

Vehicle Specification

Length 1550x480x800 mm

Weight 55 kg

Battery

Capacity 20 Ah

Electric Consumption/Charge

1 Unit

Charging time 3 to 6 hours

MotorRated Power 250 Watts

Operational SpecificationsMax Speed 25 km/hr

Max Range 50-60 Km/ Charge

Payload Capacity 80 kg

Specifications

Proton

• Dual Mode operation– Power Mode– Economy Mode

• Overload Indicator

• Extra storage space beneath the seat

• Multipurpose Mini USB Port

Features

Vehicle Specification

Length 1800x870x1200mm

Weight 110 kg

Battery

Capacity 40 Ah

Electric Consumption/Charge

2 Units

Charging time 6 to 7 hours

MotorRated Power 2000 Watts [Peak Power]

Operational SpecificationsMax Speed 60 km/hr

Max Range 60 – 70 Km/ Charge

Payload Capacity 170 Kg

Specifications

Feature Petrol two wheeler I-Proton

Fuel Petrol Electricity

Fuel cost 73.16/Litre* 10/Charge2 Units required per charge

Mileage[Km/Unit of fuel]

50** 70/Charge

Average commutation per day

50 Km 50 Km

Average commutation per year

18250 Km 18250 Km

Fuel cost per year 26,703 2607

Average saving per year 24096

*Petrol Prices are with reference to Chennai, as on 24th July,2012.** TVS Scooty Pep has been chosen for reference.

Comparison of Proton with Petrol Bikes

Neutron

• First electric superbike in India

• High Acceleration due to high start up torque ( 16 kgm/ 157 Nm )

• ABS, Ride by wire throttle, Ohlins Suspension, Multifunctional LCD display, LED head/tail lamps

• State of the art energy recycling mechanisms– Recovering energy wasted while braking– Solar panels in the hood and tank

Features

Vehicle Specification

Length 2050x695x1200mm

Weight 160 kg

Battery

Capacity 100 Ah

Electric Consumption/Charge

4 Units

Charging time 9 hours

MotorRated Power 100 kWatts[Peak Power]

Operational SpecificationsMax Speed 220km/hr

Max Range 120-130 Km/ Charge

Payload Capacity 200 Kg

Specifications

What you pay..

Price

• Target Return pricing strategy– Set your price to achieve a target return-on-

investment (ROI).• Average Competitor Price– Direct : Rs. 19,999/-– Indirect : Rs. 6,000 /-

• Our price : Rs. 16,899 /-

Electron

• Value-based pricing strategy– Price your product based on the value it creates

for the customer.• Average Competitor Price– Direct : Rs. 65,000 /-– Indirect : Rs. 58,000/-

• Our price Rs. 62,899 /-

Proton

• Cost-Plus pricing strategy– Set the price at your production cost, including

both cost of goods and fixed costs at your current volume, plus a certain profit margin.

• Average Competitor Price– Direct : N/A– Indirect : Above 2 lakhs

• Our price : Rs. 3,11,899 /-

Neutron

Where we sell it..

Place

In New Delhi, there are some areas where people dump their trash and dirt bag. Infant morbidity in New Delhi is high and main cause are these pollutions. Everyday, 1000 new vehicles run on the roads of Delhi and 3,000 tons of pollutant from industries fill the air of the city. It is not surprise that Delhi is known as 4th most polluted city in the world

New Delhi

Mumbai, another Growing City in India, is one of the most crowded city in the world. Badly, not all the people know how to clean their environment. The city always suffocated with new pollutions from the industries and vehicles. Some NGOs try to solve the problem but their solution won`t work unless it is back up with $1 billion dollar aid from Indian government.

Mumbai

While the national annual ambient average for particulate matter is 60 microgram per cubic metre, the WHO standard is 20 microgram per cubic metre. Measured emissions in Chennai, however, range between 60 and 120 microgram per cubic metre.

Chennai

Ludhiana is a highly industrial city with manufacturing plants that produce everything from textiles to auto parts. Unfortunately, this industry, paired with vehicular pollution, has made Ludhiana one of the most polluted cities in the world. It currently has the fourth most polluted air in the world. There are about 200 premature deaths each year in the city due to air pollution. Additionally, incidence of asthma is on the rise.

Ludhiana

Kanpur is one of the largest cities in India and one of the most polluted in the world. Worst still, the levels of air pollution in the city, which is the 10th most polluted city in the world, are on the rise. According to the Indian Ministry of Environment and Forest, while vehicles, road dust and domestic cooking contribute to the city's high pollution level, it is the industrial sector that is the main cause.

Kanpur

Vehicular emissions are the main cause of air pollution in Lucknow. In recent years there has been a rapid rise in vehicular density resulting in many urban and environmental problems. The concentration of Suspended Particle Matter (SPM) in the industrial and residential pockets of the city is alarming. Its incidence ranges from high to critical.

Lucknow

Six most polluted cities in IndiaWhy?

• Effects of pollution will be very evident to the people living in these cities.

• Pollution implies that the place will have – High population density – large target audience– High Industrialization – high buying capacity

How we sell it..

PROMOTION

Why?• Low initial cost• Deeper market penetration• Higher brand visibility• Win-win situation for partners• Smaller taskforce

“Don’t do all the heavy lifting. Find partners who can contribute expertise and connections”

Electron• Partnership with schools and colleges for bike display,

demo and test drive• Green Campus Initiative• Green e-newsletter• NGO partnership for awareness campaign and tree

planting events

• Target Audience– Office goers and housewives

• Promotion Strategy– Bike display and test drives in different societies– Clean your neighborhood drive– Campaigns on garbage segregation– Award ‘green credits’

Proton

• Target Audience– High end bike enthusiasts

• Promotion Strategy– Bike display at Auto Expo 2012– Partnership with Autocar India show on

Bloomberg– Tie up with Channel V to launch a bike show– Conduct ‘The Big Green Bike Ride’ to spread

awareness and brand exposure

Neutron

HITTING THE ROADS THIS

AUGUST

How we can do better..

S.W.O.T.

STRENGTHS :1. Value for money2. Green card3. Environment friendly.4. Efficient after sale

service.

WEAKNESS :1. New to Automobile

sector2. Relatively higher cost in

comparison with petrol bikes

OPPORTUNITY :1. Increasing petrol price2. Govt. encouragement3. Greener world

SO – strategy* Being an environmental friendly product , the Govt. would provide * The green card will encourage people to buy more eco-friendly products.

WO – Strategy* Due to the increase in petrol price ,there has been a fall in the sale of petrol bikes.

THREAT :1. New competitors2. Solar power

ST - Strategy* Our strong after sales network , gives us an edge over the competitors.

WT – StrategySince the concept of green bikes are new , all are in the same level.

Who takes the cheese..

Reading the Competition

• It is the two-wheeler division of Tube Investments of India, the flagship company of• Murugappa Group

• Commands a market share of 18-20% and has recorded sales of 25,000 units

• Comprises of 2 variants- The economic sports model “Street Rider” and the under• 18(no license required) model “Fusion”

• An Engineering Conglomerate with three lines of businesses –Engineering & Projects,

Steel and Electric Vehicles

• Maiden manufacturer of electric bikes in India

• Posted revenues of Rs.200 million in the July-September period this year, compared to Rs.130 million in the previous quarter. During the quarter under review, the company reported a 54 percent increase in the sale of Yo-bikes

• Variants include “YO EXL”, ”YO Xplor”, “YO Style” and “YO Spark”

BSA Motors

Electrotherm India Ltd

•Hero Eco part of the Hero Group based in New Delhi has acquired Ultra Motor’s electric two wheeler division. • Sales of 25,000-30,000 bikes this year, up 40 per cent from last year. Its plant has an annual capacity of 120,000 units.

• Includes low speed models like “Maxi” , ”Optima Plus”, ”Zion” and high speed model of “E-Sprint”.

• Coimbatore based Ampere vehicle pvt ltd is slowly expanding their operations from electric bikes to hub motor and controller manufacturing.

• Variants include “Abhi”, ”Aditi “, “Angel”, “V60” and “Visva DD “ all of which clock a maximum speed of 25kmph.

• Possess a total annual sales volume of US$1 Million - US$2.5 Million .

Hero Electric

Ampere Vehicle Pvt. Ltd.

Market Share: E-bike segment

41%

23%

21%

9%

6%

Market Share

HeroBSAYo BikeAmphereOthers

Driving The Motivation

• To purchase a product, You need a driving force (A Motivation) that impels you to buy it

• Needs are never fully satisfied• Your need could be:

– To have a 2-wheeler vehicle. (Physiological)– To make the Earth a greener (better) place to live in

(Social)– To get a 2% discount like your friends and peers get (Ego)

“Motivation is produced by a state of tension, which results from an unfulfilled need”

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