Green Technology Project: Electric Truck

Green Technology Project: Electric Truck

The Project

Our first project is aim to introduce a 10-tonne load carrying commercial truck which is:-

At least 50% lighter in term of gross weight compared to conventional trucks in the market
Easy to assemble
Uses green technology to reduce environment pollution
Heavy duty structure accompanied by Telematics system
Able to reduce the maintenance cost by almost 50% compared to similar types in market
To be priced at only 70% of the market price for similar vehicles in the market
Key Features

Design Methodology
Assembly Approach (Modular Design & Fixture )
Payload to Gross Vehicle Weight Ratio(GVWR) Ratio
Suspension System( Independent Suspension)
Eco-Friendly Propulsion Philosophy
Drive by Wire system.
The Current Setback:

Suspension systems available now are either rudimentary units or minor improvements of such systems.
And better systems are complex and far too expensive to be adopted by fleet users.
Vehicle structures are also made as a single highly rigid unit.

Market Analysis & Reports (reports courtesy of Deloitte)

Statistics from Road Transport Department shows that a total of 6,261 units of tipper/dumper were sold in 2012.

One of the key player in the market is Sinotruk Sdn Bhd, who have their own assembling plant and selling about 400 units per year (Based on their annual return and price per unit of RM218,796.10 (without cargo bay) and turnover of around RM 103 millions.
Another competitor, Automotive Corporation (M) Sdn Bhd, is selling the truck for RM253,000.  Approx. 19,374 (Year 2015 March) commercial vehicle registered in Malaysia (This includes Trucks, Prime Movers, Pick-up, Panel Vans, Bus)
Approx. 12,104(Year 2015 March) commercial vehicles being produced and assembled in Malaysia. This includes Trucks, Prime Movers, Pick-up, Panel Vans, Bus)

The Opportunity

Estimated price of the Transporter ranging between RM150,000 to RM180,000 (before tax) and may cost the customers around RM210,000 and RM240,000 after the taxes. Our price is competitive as our product offers many features which are not offered by the current players.
We are planning to sell 720 units on the second year onwards, which represent about 12% of the total market demand only.

ROI’s

The long term return on investment is about 40.7% p.a.
The investor is expected break even by the 3rd quarter of 2019, roughly on the 40th month of operations.

Additional Info

Green energy advancement and utilization is the key element in the current market trend , countries like Brazil , UAE, India , China is expected to grow tremendously in the coming year hence our opportunity to tap this untouched market is very lucrative.
The approval to use any product which is environmentally friendly is always accepted; hence our product is always on the plus point.
Future Plans

For a start, we plan to assemble 60 units per month, 3 units per day or 8 hours to assemble a single unit.
This rate is expected to increase further when the workers get used to the assembling processes
On top of that, we have plans to migrate into semi automation or full automation, which will increase the production rate up to 4 units every shift, thus quadrupling the revenue, i.e 2,880 units per year.
However, this may need additional investment in future.
There are also plans to expand the business into other regions, especially those undergoing rapid growth, such as Middle East, Africa and Latin America.

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