PROJECT REPORT

E-Bicycle
A Green Alternative to Urban Commuting

By: Vineet Chauhan

 INTRODUCTION

➢ E-bike, commonly known, as an electric bicycle, is a bike that has an integrated electric motor aligned to the
pedals of the bicycle, which supplies differential force used for forward movement of the bicycle. The electric bikes
majorly use Li-ion chargeable battery, and have a range of maximum 99.4 miles (160 km) in one single charge. These
bicycles are available with battery type of either 8, 12, or 18-amp hour batteries.

➢There is a great variety of e-bikes available worldwide, from e-bikes that only have a small motor to assist the
rider's pedal-power to somewhat more powerful e-bikes which tend closer to moped-style functionality.
MAIN COMPONENTS OF ELECTRIC BICYCLE

Three Main Components of

Electrical bicycles are like regular bikes,
but rely on three components working
together to operate.

• Motor
• Battery
• Drive train
How does it Works?

Drive train
the drive train provides the power and torque
necessary to manfully turn the wheels of the
bicycle. Mid-Drive motors send power directly to
the drive train, making chain cranking easier.
Most drive trains also allow the rider to shift
gears, making it easier to pedal.
 TYPES OF ELECTRIC BICYCLE
Today's batteries give you between 20 and 60 miles per charge, and their range is dependent on the
rider's style. Pedal Only , Pedal Assist , Electric Only.
Why is it Required?
 Health benefits of E-bicycle
❖ Sustainable Aerobic Exercise : Cycling has the potential to help many people meet the suggested
exercise goals, especially if they use it as part of their everyday life, such as commuting to work.

❖ Cycling More : Ebikes cause people to cycle longer and more often – especially woman.

❖ Strengthening Muscles, Bones, and Joints : Ebikes are substantially heavier than normal bikes, For
this reason, steering, pedaling, and balancing an electric bike provides strengthening exercise that
promotes healthy and strong muscles, bones, and joints.

❖ Building Confidence : Cycling may seem like a great option, but many people may not have ridden a
bike for decades, and may be intimidated. An ebike can make starting to cycle again much less
daunting.

❖ Older People and People with Health Problems can Keep Exercising.
 PROS CONS

❖Speed: Electric bikes generally have a higher top ❖Batteries Maintenance.

speed than a normal bicycle with the same rider
❖ Range: Can't travel for very long
❖ Adaptability: Electric bicycle can use the normal
distance, needs recharging.
bicycle infrastructure such as parking space.

❖ Great for Commuting: This allows for much faster ❖ Instant charging is not possible.
movement in congested areas.
❖ Can't carry weight more than
❖ Easy on the body: It assist elderly people and 200kg.
people with health problems, so there is less
stress on their body. ❖ Complexity: As compared with
parts of normal bicycle.
❖ Great for fitness and Eco friendly as well.

❖Cut back expenses: Pocket friendly than bikes.

Philosophy of Cycling
 Target Customers
❖ The Student rider:
Travelling to and from university campuses on an E-Bicycle is becoming increasingly popular. Dodge the
speeding cars, avoid long waits at bus stops and save money! You can travel between classes and charge
your portable battery as you go. If you live in a dorm room, you can even choose a folding electric bike,
which can be put into storage for convenient living. A growing number of universities are supporting e-
bike riders with cycle schemes.

❖ The elderly rider:

Electric bicycles have helped many of our senior clients to get active again. Offering low impact exercise
and a fantastic method of mobility, hills will no longer be a bother and becoming exhausted mid-ride is a
thing of the past. Due to the power-assistance components, you can use your e-bike to make short trips
around town, to visit family and take part in leisure activities.

❖ The delivery rider:

With no tax and insurance fees, electric bikes are ideal for those who provide food delivery services.
Getting you to where you need be quickly and with low environmental impact, electric bikes are changing
the way that deliveries take place. This mode of transport will also allow you to cover extensive ground in
shorter spaces of time.
 Target Customers
❖ The commuting worker:
Exercising at the start and end of your working day makes a significant difference to your working life and
fitness level. With an electric bike, you can avoid the work sweats and quick showers before meetings, by
travelling with ease and speed. At excess Electric Bikes, we understand how important punctuality and
productivity is in the workplace, and an e-bike will ensure that you maintain efficiency. Foldable electric
bikes are also a great option for the work commuter, as they can be folded and carried on buses or trains
perfect.
❖The recreational rider.

❖The urban rider.

❖The mountain climber.

& many more…

 Indian Market Growth and Potential

The company, which has tied up with 13 retail partners across 11 cities, will have on offer 34 products priced
between Rs 25600 and Rs 1.65 lakh.
 Opportunity…
The increasing congestion, urbanization, and sustainability are majorly driving the growing demand for bicycles all
over India. Punjab state accounted for the largest share in the manufacturing of bicycles which produced around
10.5 million units in 2017

Various bodies representing Cycle manufacturer’s Association have urged government to issue guidelines for
appropriate use of made in India bicycles and have cautioned government against Chinese firms for
representatives of various bodies who deliberated open the issue recently mentioned that the government should
also impose 60% import duty on cycles and empower departments concerned in the cities to build safe cycling
lanes.

https://retail.economictimes.indiatimes.com/re-tales/retailing-premium-cycles-in-india/3510
 Indian Market Growth and Potential

India is the second largest producer of bicycles with 12 million units per year of which 5–7% are premium
bicycles and are growing at a rate of 25% annually. The premium bike trend started in India after the
introduction of Firefox bikes. Now there are plenty of international and Indian brands available in India in
premium bike segment. E-Bike is a new segment in India. And it is having a market potential of 5.3 billion
USD. Some companies are already started their E-Bike production. ROULIK, Spero, Hulikkal, Beinghuman
are some of them playing in E-Bike segment.
 Global Market Growth and Potential
The global e-bike market is projected to grow at a CAGR of 9.01% during the forecast period, to reach USD
38.6 billion by 2025 from an estimated USD 21.1 billion in 2018. Class-I electric bike is estimated to be the
largest segment in the global market. A class-I electric bike is equipped with a motor that provides
assistance only when the rider is pedaling and stops providing assistance when the bicycle reaches 20
mph.
✓ Giant Indian Market Players
✓ Bianchi
✓ Scott Sports SA
✓ Cicli Pinarello S.p.A.
✓ Colnago Ernesto & C. S.r.l.
✓ Schwinn
✓ Trek Bicycle Corporation
✓ Cannondale Bicycle Corporation
✓ GT Bike
✓ Piaggio & Co. SpA
✓ Atala spa
✓ Accell Group
✓ canyon bicycles
✓ Atlas
✓ Hero Cycles
✓ Firefox Cycles
✓ Avon Cycles
✓ TI Cycles
✓ Starkenn Sports
 SWOT Analysis
WEAKNESSES
STRENGTHS
•Preferable for places with
•Reduce parking demand.
low traffic.
•Reduce transportation costs
•Safety factor is low.
and encourage sustainable
•Not very durable.
transportation.
•Easy to maintain and reliable.
•Sales and services are THRESTS
convenient.

OPPORTUNITIES •Fluctuating demands due to

economic factors.
•Enormous potential to •Growing competition.
operate in the globle market •No structure of E-bicycle
•Scope of innovation is high •Govt. bicycle sharing system
under smart cities initiative.
 Business Model

Product

Service repair Parts and

accessories
Product Raw Material Cost Estimation

# Part Description In Rs.

1 Bicycle 4000
2 Motor 3500
3 Battery 800
4 Charging port 100
5 Doorlock 100
6 Light 150
7 Throttle 300
9 Brake light 50
10 Controler CKT module 1000
Total Cost 10000
FYI – 2020 - Considering 3,000 units in a year @ Product sale cost Rs. 25,000 through E-Commerce platform
Profit & Loss Statement (E-Commerce Channel)
PROFIT & LOSS in Rs.
Total Sales of Machine 75,000,000.00
Total Sales of Equipments / Accessories 600,000.00
Total sales 75,600,000.00
# Equipments Qty. in Rs. Remarks
less cost of Raw Material 30,000,000.00
1 Wrapping machine 1 100,000.00
Logistics, etc. 450,000.00
E-Commerce Margin (Amazon / Flipkart / etc.) 7,560,000.00 2 Storage Racks, Trolleys, etc. - 500,000.00
E-Commerce Customer Returns Loss 225,000.00 3 Assembly Tools - 100,000.00
Warranty Cost 540,000.00 4 Bar Code Machine 2 - Available
Total RM Cost 38,775,000.00 Total investment 700,000.00
Gross PROFIT/net sales 36,825,000.00
Expenses
Selling & Marketing Exp. 3,600,000.00
Utilities (electricity, water) 120,000.00
Rent & rates 240,000.00
R&D Expenses 300,000.00
Repairs & maintenance 120,000.00
Insurance 108,000.00
Salary expenses 2,724,000.00
Interest 300,000.00
ERP System 96,000.00 Payback in less than 1 month
Misc 120,000.00
Total expenses 7,728,000.00 *Complete Raw Material will be procured in semi knock down
NET PROFIT/Net income) 29,097,000.00 condition and final assembly will be done at Miraj.
 FYI – 2020 - Worst Case Scenario Analysis through E-Commerce
Sales down by 50% and Raw material cost up by 10%.

PROFIT & LOSS in Rs.

Total Sales of Machine 37,500,000.00
Total Sales of Equipments / Accessories 300,000.00
Total sales 37,800,000.00
# Equipments Qty. in Rs. Remarks
less cost of Raw Material 16,500,000.00
Logistics, etc. 225,000.00 1 Wrapping machine 1 100,000.00
E-Commerce Margin (Amazon / Flipkart / etc.) 3,780,000.00 2 Storage Racks, Trolleys, etc. - 500,000.00
E-Commerce Customer Returns Loss 112,500.00 3 Assembly Tools - 100,000.00
Warranty Cost 270,000.00 4 Bar Code Machine 2 - Available
Total RM Cost 20,887,500.00 Total investment 700,000.00
Gross PROFIT/net sales 16,912,500.00
Expenses
Selling & Marketing Exp. 3,600,000.00
Utilities (electricity, water) 120,000.00
Rent & rates 240,000.00
R&D Expenses 300,000.00
Repairs & maintenance 120,000.00
Insurance 108,000.00
Salary expenses 2,724,000.00
Interest 300,000.00 Payback in 1 month
ERP System 96,000.00
Misc 120,000.00 Considering 15,00 units in a year @ Product
Total expenses 7,728,000.00
NET PROFIT/Net income) 9,184,500.00 sale cost Rs. 25,000 only.
“We aim to achieve a sales target of 3,000 units in 2020 scaling up
further to 50,000 units by 2023.”
FYI – 2023 – Considering 50,000 units in a year @ Product sale cost Rs. 20,000 through E-Commerce platform
Profit & Loss Statement (E-Commerce Channel)
PROFIT & LOSS in Rs.
Total Sales of Machine 1,000,000,000.00
Total Sales of Equipments / Accessories 10,000,000.00
Total sales 1,010,000,000.00
less cost of Raw Material 400,000,000.00
Logistics, etc. 7,500,000.00
E-Commerce Margin (Amazon / Flipkart / etc.) 101,000,000.00
E-Commerce Customer Returns Loss 3,750,000.00
Warranty Cost 9,000,000.00
Total RM Cost 521,250,000.00
Gross PROFIT/net sales 488,750,000.00
Expenses
Selling & Marketing Exp. 3,600,000.00
Utilities (electricity, water) 120,000.00
Rent & rates 240,000.00
R&D Expenses 300,000.00
Repairs & maintenance 120,000.00
Insurance 108,000.00
Salary expenses 2,724,000.00
Interest 300,000.00
ERP System 96,000.00
Misc 120,000.00
Total expenses 7,728,000.00
NET PROFIT/Nnt income) 481,022,000.00
 BUSINESS STRATEGY
➢ Tie up with Indian based normal bicycle manufacturer.
➢ Procure ready made kits from different-different resources or Import from China.
➢ Assembly SKD / CKD kits at Miraj.
➢ List your product on E-Commerce websites.
➢ Market Feedback.
 Threats…
The main reason for people not taking up cycling is threat to life. There are no cycling paths in the city. People are
constantly scared for their life. Not only has that it become worse because the family members are constantly
worried about the safety. This pulls back people from cycling.
Also the low weight electric cycles attract more attention in terms of theft. "We pay almost equal amount for the
bicycle as a bike. However, there is no registration number or insurance or a way to track the bicycle. With the
battery box visible outside, thieves are immediately attracted to it and would either lift the cycle away or steal the
battery box away. Both of these have a high value in the market and hence it becomes a huge threat.

https://bestmediainfo.com/2019/02/giant-eyes-15-share-
in-india-s-premium-bicycle-segment/
THANK YOU!