Consumer Discretionary

<h2 style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p style="text-align: justify;">I am an experienced advisor working as an independent consultant since 2021 with various Think Tanks like 1) WRI India for Bus program, 2) Deloitte India for City mobility program (Surat), and 3) ICCT (e-truck localization potential), specializing in the design and implementation of end-to-end green, sustainable, and futuristic public mobility solutions. I also worked with UMTC for bus service in remote areas, connecting them to the District HQ and manifold on Nepal bus programs.&nbsp;<br>I am also an advisor to infrastructure funds, which have plans to invest in the electric mobility space.</p><p style="text-align: justify;">Work with WRI India was on supporting the Government in making electric vehicle policies, tendering, and execution of the e-bus programs. Most of the work involved advising CESL and MoHUA as technical experts on e-bus tenders.</p><p style="text-align: justify;">My career started with Escorts Ltd for about 12 years (1985- 1997) and then over two decades (1997-2022) at Tata Motors, where I held various strategic roles, culminating in my position as Head of Sales &amp; Marketing for the Government Business. In this role, I led a team that developed and delivered comprehensive mobility solutions for Government customers, encompassing the full spectrum from passenger vehicles to cargo commercial vehicles.</p><p style="text-align: justify;">Throughout my career, I have been involved in various activities, including strategic planning, vendor development, and sales &amp; marketing for passenger vehicles. My expertise extends to working closely with government entities at the Central, State, and Municipal levels, where I have provided innovative solutions for diverse sectors such as waste management and public health services, as well as advancements in public transport.</p><p style="text-align: justify;">I am passionate about advancing green and sustainable transportation solutions and continue to seek opportunities to leverage my skills and experience to drive meaningful impact on the public.</p><p style="text-align: justify;">In addition to my professional achievements, I have been actively involved in Corporate Social Responsibility (CSR) initiatives, including organizing and participating in various community service projects during my tenure at Tata Motors.&nbsp;<br>Currently, I am dedicated to supporting underprivileged students in their studies and am eager to expand my efforts in community development and educational support.<br>&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q2. Who are the leading players in the EV and hydrogen mobility markets, and how are they reshaping the competitive dynamics?</span></h2><p style="text-align: justify;">Leading players in the EV commercial vehicles space are traditional OEMs, such as Tata Motors, Ashok Leyland, and Volvo Eicher, who have been manufacturing buses for decades. Other new bus manufacturers who have entered because of the focus of the Government of India to ensure zero-emission buses are startups like Olectra, JBM, EKA, and PMI. Now, some new beginnings are being made by operators either making their own buses or buying buses from OEMs and then entering new market segments like Green Cell Mobility, Chartered Speed, Chalo, etc. They are providing public service in PPP mode, thus addressing the gap that has existed for a long in the system.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q3. How are advancements in battery technology, fuel cell efficiency, and autonomous driving features influencing product development?</span></h2><p style="text-align: justify;">New products like electric buses are making transport easier and affordable; electric buses are more efficient, less polluting, and more economical, besides CAPX being 3 times the ICE buses. To add to this, battery technology is also improving, and with a reduction in the cost of batteries, it is now possible to have full range for a full day of operation, thus solving the critical issue of range anxiety.</p><p style="text-align: justify;">Buses now have more Intelligent Transport systems and features that give real-time bus availability at depots/ bus stops, thus making commuting easy and comfortable for daily users who otherwise use private transport. Public transport must be affordable, efficient, and comfortable to be the preferred mode of transport in urban conglomerates.&nbsp;<br>&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q4. How are regulatory frameworks impacting the development and commercialization of EV and hydrogen mobility solutions?</span></h2><p style="text-align: justify;">Regulatory frameworks like the scrapping of old vehicles, the promotion of electric vehicles by subsidizing public transport, and additional support to state governments for electric infrastructure development are supporting the industry's investment in this sector.</p><p style="text-align: justify;">The government is also supporting Hydrogen as a clean fuel for transport and encouraging research and development for H2 mobility. &nbsp;<br>&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q5. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><ul style="text-align: justify;"><li>How are companies investing in innovation in electric mobility, battery technology, localization of batteries, cell manufacturing, making motors with rare earth technology, etc?</li><li>How are manufacturing companies investing in the safety of new vehicles, solving critical problems of public transport through innovation, and learning from other nations in this area?</li><li>Which are the areas of expertise developed in house and the Joint ventures to learn from other advance nations or companies to be leader in this space.</li></ul><p style="text-align: justify;">Companies need to show agility and strength in adopting new technologies and invest in the future of technology.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><br><span style="font-size: 14pt;">Expert Summary</span></h2><p style="text-align: justify;">Sanjay Bhatia is a seasoned professional with 35 years in the automotive sector, focusing the last decade on collaborations with Central and State governments in India. He has significantly contributed to the growth of public transport through initiatives like JnNURM and FAME, successfully securing bids over INR 2000 Cr for electric buses now operational in cities like Mumbai, Lucknow, and Kolkata. His expertise extends to business dealings with State Transport Undertakings through the tendering process, alongside roles in supplier development, and process and manufacturing engineering and planning services.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>