Feasibility of Biodiesel in India

INTERNATIONAL
MARKETING
RESEARCH
-A STUDY ON THE FEASIBILITY OF BIODIESEL CARS IN INDIA
Submitted by
SUMEET SINGH
MIB 2009-11
ROLL NO. 51
Feasibility of Biodiesel cars in India 2010
ACKNOWLEDGEMENT
A study like this is never the outcome of the efforts put forth
by one single person.
I would like to express immense gratitude to Prof. SRI RAM

KHANNA for his support and guidance. Not only did he
provide the necessary guidelines and initial directions for the
project, but he also continuously made us question our
research, relate our projects to what was being taught in
class and find out innovative ways to sieve information.
I would also like to thank my mentor Subrita Sthapit for her

constructive criticism.
I would also like to thank people in automotive forums online

who are more knowledgeable and experienced me and
helped me in many ways to accomplish this project.
Sumeet Singh
MIB 2009-11
2
CONTENTS
Abstract………………..………………………………………………………………………………………………………3
Introduction………………………………………………………………………………………………………………….5
Technical Standards...............................................................................................8
Biodiesel in India……………………………………………………………………………………………….10
Emission characteristics…………………………………………………………………………………….13
Research Problem…………………………………………………………………………………………………………15
List of Information needed……………………………………………………………………………………………16
Review of Secondary Information………………………………………………………………………………….17
Government policy on Bio fuels………………………………………………………….…………………………22
Primary Research Design……………………………………………………………………………………………….24
Conclusion………………………………………………………………………………………………………………….…26
References…...................................................................................................................28
3
ABSTRACT
Take a look around and observe the economic and infrastructural development
happening around us. We notice that we are far more aware and concerned
about the environment and our surroundings than we ever were. The
technologies that we develop, the structures that we create, the policies that
we make, everything is getting more and more lenient in terms of negative
impacts on the environment.
A very large part of all this development is constituted by our means of

transports viz. Cars, buses, two wheelers and a lot more. Also, this segment
has been historically notorious for harming the environment by use of fossil
fuels and noxious emissions. So, it is highly important that large and important
steps be taken in a direction that leads to curtailment or reduction of harmful
impact on our environment stemming from automobiles in particular.
The challenge posed by this problem is the high involvement of technology in

automobiles and hence a lot of breakthrough development is happening on
the technology front in particular. A fair amount of success has been achieved
after the solar technology was deemed to be very expensive and impractical
for this purpose. The advent of electric cars and bikes and especially electric
hybrids in our markets is worth mentioning here. But a technology which is
being hotly debated these days and is the focus of this study is Biodiesel
Hybrids.
4
As the name suggests, these machines or engines run on Biodiesel. Biodiesel is

one of many fuels derived from Biomass in some way or the other. Biodiesel in
particular is made from vegetable oils and animal fat or used greases
sometimes. Although Biodiesel is sufficient as a fuel in itself but is usually put
to use as a diesel additive in different quantities. This fuel in particular does no
harm to the engine and reduces emissions.
In a market like India which is a fast developing economy and has a huge
potential for any radical change due to the sheer diversity and size of it, such a
product has good potential. Besides a growing automobile market makes even
more sense for a company to introduce a product that can be run on Biodiesel.
5
INTRODUCTION
BIODIESEL
Biodiesel is a renewable fuel that is derived from animal fat, vegetable oils and
used greases. It can be used as an additive to normal petroleum-Diesel with a
little modification to the engines. Biodiesel as a lot of people believe is not raw
vegetable oil. It is manufactured using a chemical process that removes
glycerine from the vegetable oil.
BLENDING
Biodiesel can be blended with petroleum-diesel in any quantity ranging from 1

to 99 percent. It is retailed around the world in blended form only. Most of the
world uses a nomenclature which is the B-numeral system. According to this, a
Biodiesel is referred to by its blending percentage in the hydrocarbon based
diesel. For example, a 20 % mixture of Biodiesel with normal diesel is called
B20.
Although even B100 can be used in automobiles, but for optimum

performance of the new common rail high fuel pressure engines B5 to B20 is
recommended by manufacturers.
PRODUCTION PROCESS
To make, or manufacture, Biodiesel you must first start with raw materials. The
raw materials needed in the production of Biodiesel are a small amount of
Methanol and a ready supply of vegetable product.
6
One of the most common vegetables used in the production of Biodiesel is

corn, although depending on the geographic location of the manufacturing
facility many other plants are used as well (rapeseed, soybeans, flaxseed, etc.).
The first step is to use the raw vegetable product to make vegetable oil.
Vegetable oil by itself will not be what you need to power a car, from here it
has to be processed into Biodiesel.
The process for converting vegetable oil into Biodiesel is sometimes called
ester interchange. To complete this process the vegetable oil has to be
combined with a smaller amount of Methanol and then put in the presence of
a small quantity of an alkaline catalyst (for example, .5% to 1% sodium
hydroxide). Vegetable oil is made up of so-called triglycerides, which is a
compound of the trivalent alcohol glycerine with three fatty acids. The goal of
ester interchange is to separate, or detach the glycerine molecule from the
three fatty acids and replace it with three methanol molecules. These process
then yields roughly 90% Biodiesel and 10% of a glycerine by-product. The
glycerine by-product can be used in a number of other chemical processes for
different industries. There are also studies being done to see if the glycerine
by-product, since it is vegetable based, can be used as feed for animals. This
makes the production of Biodiesel produce virtually no waste products at all.
The production of Biodiesel is done in a large manufacturing facility like those

being built around the world to take advantage of this relatively new fuel
source. These facilities are built much like their oil refinery cousins with the
intent of putting out hundreds of thousands, if not millions, of gallons of fuel.
Unlike the manufacturing process of standard mineral based fuel, Biodiesel can
also be manufactured in smaller home or farm units, or kits.
7
Cost of Producing Biodiesel in India.
The process remains the same but on a much smaller scale. There is also the
option of making Biodiesel at home from used vegetable oil gathered from
restaurants and delis. To achieve this, the oil first has to go through another
process to clean it of any impurities.
SALIENT FEATURES
 Reduces fuel system wear and tear

 It provides better lubrication, hence reducing friction due to its low
sulphur content.
 Significantly lowers emissions
 Cheaper than standard diesel due to tax subsidies by governments.
8
TECHNICAL STANDARDS
Biodiesel has a number of quality standards across the world to ensure

stringent and strict control and monitoring of quality of Biodiesel.
The European Standard is EN14214 which is translated in to standards for

different countries of the EU
AMERICAN SOCIETY FOR TESTING AND MATERIALS has issued standards for
Biodiesel
 D6751-08 Specification for Biodeisel Fuel Blend Stock (B100) for Middle
Distillate Fuels
 D975-08a Specification for Diesel Fuel Oils (on and off-road applications)
 D396-08b Specification for Fuel Oils (home heating and boiler

applications)
 D7467-08 Specification for Diesel Fuel Oil, Biodiesel Blend (B6 to B20)
The standards ensure that the following important factors in the fuel
production process are satisfied:
 Acid value
 Complete reaction.
 Removal of glycerine.
 Removal of catalyst.
9
 Removal of alcohol.
 Absence of free fatty acids.
 Low sulphur content.
 Cold Filter Plugging point
 Cloud Point
10
BIODIESEL IN INDIA
Global biodiesel production reached 3.8 million tons in 2005. Approximately

85% of biodiesel production came from the European Union
The first biodiesel plant in the country set up by SouthernOnline Bio

Technologies (SBT) at Samsthan Narayanpur in Nalgonda,Andhra Pradesh.
Bio Diesel in India is right now pertaining mostly to cultivation of Jatropha,

which is an oil rich seed. It is cultivated on fallow lands and the oil is
extracted out of it to produce Biodiesel.
Indian Bio Fuel Policy was finally announced on 23rd Dec 2009. It talks of
issues relating to plantation of Jatropha, the minimum support prices, the
minimum buy prices. Bio-ethanol already enjoys concessional excise duty of
16% and biodiesel is exempted from excise duty.

Biodiesel in India has the potential to address five of its most important development
challenges.
 Biodiesel has the potential to contribute to India’s energy supply and to decrease i
dependency on oil imports. Due to high economic growth, continuous population
growth, and increasing urbanization, Indian energy and oil demand has risen
significantly and will keep on rising in the near future. With a constant domestic oi
 Second
production at onlyof33-34
potential mio is
Biodiesel t per year, India
to reduce depends
India’s strongly on
carbon-dioxide oil imports
emissions. To to
satisfy the
achieve its increasing
development energy demand,
targets, exposing theofIndian
the Government economy
India aims to the 8%
to achieve oil price
grow
fluctuations of thesubstantial
in GDP, requiring world market. From 1990/91
additional to 2006/07,
energy inputs. Indian
Therefore, oil imports
economic growth
increased dramatically
directly linked to growingfromGHG21 emissions,
to 111 miowhich
t. As world market prices
have increased for crude
by about 7 % oil
 tripled
annuallyduring
The third during the
potential same
the period
1990s.
of imports
Despite
Biodiesel have alow
is torelatively
contribute strong
the effect
tolevels oncapita
of per
rural India’semissions,
economy foreign
and to create
exchange
estimations expenditure,
employmentsuggestand income its trade
that until
for the2020balance
they
rural and economy
will While
poor. increase
thebyas a whole.
400%economy
Indian Biodiesel
compared togrown
has 1990.
production
the Government
rapidly in thehas the
last of potential
decade, to development
India islittle reduce to
committed pressurehason
promote oil imports.
renewable
taken place inenergies
the ruraland to shift
areas, ho
a low
to carbon
three growth
quarters trajectory,
of the promotion
Indian poor. of Biodiesel
While India’s total is one wayand
economy of reaching thist
particularly
goal. Furthermore, Biodiesel activities can be an opportunity to receive additional
11
service sector is booming, the agricultural sector has almost stagnated. This advers
affects the rural poor who depend on agriculture for their livelihoods (World Bank,
2006b). The Indian agricultural sector is characterized by low productivity: The sec
contributes only 18% to the GDP although it employs almost 60% of the Indian
workforce.
 Rural energy security is a fourth concern to which Biodiesel might contribute.

According to the 2001 Census of India, less than 50% of India’s rural population ha
access to electricity. Since electricity not only increases living standards but is also
indispensable for many productive and economic activities, there is a close
connection between access to electricity and poverty alleviation The Indian Minist
of Power has set the target to electrify about 80,000 villages by 2012. Out of these
18,000 villages in remote and inaccessible locations need decentralized solutions f
energy supply. Biodiesel – or its preliminary product, Straight Vegetable Oil (SVO) i
produced in the respective villages, can be one option for decentralized reliable an
affordable electricity supply and a renewable energy source.
 Fifth, cultivation of TBOs can be conducive to the protection of natural resources. I

India, large amounts of land are not suitable for productive purposes due to harsh
agro climatic conditions or unsustainable usage. The Wastelands Atlas of India, a
satellite based land survey by the Indian Ministry of Rural Development, identifies
553,000 km² of the 3.3 Mio.km² total land area in India as wastelands. Particularly
108,000 km² of degraded forests and 151,000 km² of land with only scrub vegetati
– amounting to more than 8% of the total geographic area in India (ibid.) – need
12
afforestation and soil improvement to prevent further degradation.20 Being more

drought resistant than most other crops and trees, oil-bearing trees can be an opti
to contribute to the rehabilitation of degraded land through stabilizing soil, improv
manure cover and bringing degraded land back to productive use.
Emission Characteristics
Biodiesel is the only alternative fuel to have a complete evaluation of emission results and
potential health effects submitted to the U.S.EPA under the Clean Air Act Section 211(b).
These programs include the most stringent emissions testing protocols ever required by E
for certification of fuels in the U.S. Emission results for pure Biodiesel (B100) and mixed
Biodiesel (B20-20% Biodiesel and 80% petrodiesel) compared to conventional diesel are
given below:

Biodiesel Emissions Compared to Conventional Diesel
Emissions B100 B20
Regulated Emissions
Total Unburned Hydrocarbons -93% -30%

Carbon Monoxide -50% -20%
Particulate Matter -30% -22%
NOx +13% +2%
Non-Regulated Emissions
13
Sulphates -100% -20%*

Polyciclic Aromatic Hydrocarbons
-80% -13%
(PAH)**
NPAH (Nitrated PAHs)** -90% -50%***
Ozone Potential of Speciated HC -50% -10%

Life-Cycle Emissions
Carbon Dioxide (LCA) -80%
Sulphur Dioxide (LCA) -100%

*Estimated from B100 results. **Average reduction across all compounds
measured. ***2-nitroflourine results were within test method variability.
14
THE RESEARCH PROBLEM
A market as viable as India poses a primary problem of acceptance. The

core research problem in a place like India is tackling attitudes and diversity.
The Research problem hence formulates itself as,
Is there a market in India for Environment Friendly Automobiles in the form

of Biodiesel Hybrids?
We have seen that there have been some entrants on the electric hybrid
front like the Reva electric car, Honda Civic Hybrid, Mahindra Scorpio
microhybrid and a host of electric scooters.
As of now, Mercedes Benz is doing extensive testing of its Biodiesel fleet in

extreme terrains and conditions. In fact, under their CSR programme, they
have been encouraging Jatropha cultivation in India too.
On the other hand, the govt. too is encouraging Biodiesel. The new Bio fuel
policy makes 10 % blending of Bio fuel with petroleum compulsory by 2012
and up to 17 % by 2017.
15
LIST OF INFORMATION REQUIRED
Conducting a research study to understand the feasibility of environmentally

friendly automobiles pertaining to Biodiesel hybrids in India will need a
plethora of information about different aspects of the present automotive
market in India and also some vicarious indicators in the form of documented
historical success/failures of similar products in the past.
The following information is critical:
 The data related to the current Automobile Market in India which will
allow us to understand the current trends and patterns in the market.
We need to know how much people are spending on cars and how much
are they willing to pay as a premium for an environment friendly vehicle.
 The data pertaining to sales of previously launched electric hybrids and
Biodiesel hybrids. This can tell us whether something like this has
rejected entirely by consumers or we can avoid the pitfalls and start
afresh and succeed
 The government subsidies and regulations for Bio-diesel as a fuel and
the vehicle. The govt. Subsidies on fuel in the future are very important
as in most markets
 Information related to availability of Bio-diesel fuel in India
16
 Primary information to gauge willingness of consumers in metro cities to

buy such vehicles.
REVIEW OF AVILABLE INFORMATION
The Indian Automobile Industry
17
Data Source: SIAM
The Gross turnover the sector is 34,285 million USD which is phenomenal.
The data used here is till 2007, but it was chosen as it comes from a very
reliable source SIAM. Moreover, the period after this was recession and this
data gives a very good idea of pre-recession times.
What this data indicates is that the market is huge as of now. The market
grew at over 26% in the last quarter as per this data and this growth is
unprecedented. Hence, the automobile market is a very lucrative
proposition as of now and since we see the spending power of the
consumer is increasing as well, we will see more of this growth in future.
This market needs to be tapped into with innovative and clean products.
The present installed capacity of four-wheelers in India is around 2.24

million units.
As per recent figures available from SIAM, Passenger Vehicles segment

during April-February 2010 grew at 26.13 percent over same period last
year. Passenger Cars grew by 25.65 percent, Utility Vehicles grew by 22.87
percent and Multi Purpose Vehicles grew by 38.20 percent in this period.
Passenger Cars 25.65

Utility Vehicles 26.13
Multi-purpose vehicles 38.20
Growth in the passenger vehicle segment during April-Feb 2010
18
As we notice, the domestic market according to SIAM has 15.96 % share of

passenger cars.
The CIA world fact book states that India is 4th in the world in terms of
purchasing power parity with a GDP (PPP) of $ 3,561,000,000,000.Most
importantly, this figure is ever increasing.
Hence, according to this data we can conclude that the Automobile market in
India is quite huge and is growing very fast. On top of that the purchasing
power parity of the Indian consumer is growing too. More people can afford
cars now. While only around 7% of the country can be considered middle class
today, this number is going to be 40% by 2025, according to Mckinsey
The primary driver of India's growth as a consumer economy is increasing

incomes. Average real household disposable income is set to grow from Rs
113,744 in 2005 to Rs 318,896 by 2025, a compound annual growth rate of 5.3
per cent. This is much more rapid than the 3.6 per cent annual growth of the
past 20 years and, with the exception of China, much quicker than income
growth in other major markets.
Income growth is, in turn, dependent on sustaining overall economic growth in

the years ahead. We are optimistic on this front because of the substantial
scope for Indian businesses to increase their productivity, the growing
openness and competitiveness of the Indian economy and favourable
demographic trends.
19
PRODUCTS ALREADY IN THE MARKET
It is important to understand the previous reaction of the market to

environment friendly vehicles. Though not many breakthroughs have been
made in the field, but there are some number of innovations predominantly in
the electric hybrid segment and not so much on the bio-diesel hybrid side.
Some products and their success in analyzed.
Honda Civic electric Hybrid
In the summer of 2008, Honda Seil cars ltd. launched the electric power train
version of their popular premium sedan civic. This version was using an electric
power train and used a mixture of conventional fuel and batteries. It
significantly lowered the emissions and used regenerative braking to make the
best use of energy flowing from one part of the vehicle to other.
This car was being imported from Japan as a completely built unit(CBU) and
hence carried the hefty price tag of 21.5 lacs ex-showroom Delhi, which is
almost double the price of the normal version.
Now, here we have the quintessential example. A product which is available in

two versions which are exactly the same except for the fact that one is more
environment friendly than the other and commands a premium in terms of
price. The company expected to sell about 200 units of the Civic initially but to
20
their surprise the model invited 50 sales in the first month itself. Post that, the
monthly sales died down to about 5-7 units.
This was a bad precedent. The car reportedly garnered some initial sales based
on the hype and some concerned and capable buyers after which the demand
almost died down and the model was discontinued in the market in 2009.
Mahindra Scorpio Micro-Hybrid
There was a lot of hullabaloo created around the launch the Scorpio micro
hybrid from Mahindra, but it turned out to be a no show actually. What
Mahindra described as micro-Hybrid was actually just a stop-start kit. The
onboard computer just killed the engine if it was idle for more than 10
seconds. Since there was no major price difference in the base model and
micro-hybrid, it was lapped up.
Reva Electric car
The first electric car in India was launched by REEC Bangalore. It was a
compact two-seater that was smaller than the average auto-rickshaw. It
could not fit a tall individual and reached maximum speeds of only up to 70
kmph.
The maximum sales that it could achieve were around 3000 units per year
which is great. But sadly, to break even the company needs sales of around
7000 units per year which looks difficult in spite of efforts put in by the
company in form of improved vehicle and marketing.
Still most people do not take it seriously as a car.
21
Government Policy on Biodiesel
The govt. Recognizes Biodiesel as a Bio fuel and it is governed under the
Ministry of New & Renewable energy. A 20% blending goal has been set for
both Bio-Ethanol and Bio-Diesel by 2017.
As of now, no subsidies are being provided to the end consumer on

Biodiesel. But the central duties have been removed in the recent policy
and a standard 4 % VAT is applicable. The price is also related the fuel prices
in general and fluctuates.
Although no subsidies have been provided to the end consumer, a lot of

subsidies have been given to the cultivators of Jatropha. Biodiesel is a
‘declared good’ and as stated, invites a standard tax slab across the country.
Availability of Biodiesel
The Ethanol industry in India has matured to a certain extent. But the
Biodiesel industry is still in its infancy. The cost of manufacturing both
ethanol and Biodiesel in India is roughly Rs21/Litre, which is almost the
22
same as petrol and diesel. But the costs of petrol and diesel are set to rise in
the future.
The govt. has formulated an ambitious plan to meet 20% of the country’s
diesel needs through Biodiesel by 2012. The projected demand for B20
Biodiesel by 2012 13.38 metric tons
So, the installed capacity of Jatropha seed cultivation and processing into
biodiesel is not enough and the demand will have to be met through
imports. But the govt. is presently paying enough attention to the sector for
it to flourish and grow.
23
PRIMARY DATA COLLECTION
A lot of data required can be procured from industry bodies which sell
industry specific data. But it is of utmost importance that the consumer is
also made part of this study. At the end of the day, if a company wants to
launch a product in this particular category, it needs to avoid the pitfalls of
other companies and understand whether the market is ready for
something like this or not.
The very first assumption here is people in urban centres are most capable
of purchasing automobiles as of now and also have the relative maximum
level of awareness among the consumer base; it is a good strategy to focus
on the metros.
The following metros should be focused for the research
New Delhi
Mumbai
Bangalore
24
Chennai
Kolkata
Chandigarh
The primary data collection needs a strong tie up with existing automobile
dealers. More importantly, the automobile company already has existing
dealership networks in these metros and hence it will be a good idea to
conduct surveys through them. The consumers who come to purchase or
even test drive or look at cars can be targeted for this.
COSTS
There are practically no costs associated with primary research initially
apart from the stationary cost and time factor since the infrastructure is
already existent.
The existing dealerships can be sent a relevant questionnaire online
through email and they can print it out and get it filled from people who
drop in. They can also include the customers who are present on their
database.
The results can be tabulated and sent back and they can be analyzed. The
survey is going to very basic, just to understand whether the customers
would be interested in the product or not.
25
CONCLUSION
This research proposal intends to find out whether an automobile company
should launch a Biodiesel hybrid car in India or not. It is a big decision for
the company, although producing a Biodiesel hybrid requires minimum
changes in the engine and hence no new plants or assembly lines are to be
set up but whether the product will sell at all or not is a big question.
The aspects of the growing automobile sector highlight that there is
certainly room for an environmentally responsible entrant. The government
is also quite positive about the Bio fuel sector and has designed
comprehensive policies for the same.
The conditions indicate a very conducive environment for a product like
this, but the million dollar question is whether the customers are ready. The
Honda Civic hybrid was a great car, but the consumer in India is not so
concerned about the environment that they spend double the amount on a
car.
So, if the company avoids pitfalls like this and actually is successful in
bringing forward a good product, there is no doubt that the consumers will
lap it up.
26
REFERENCES
REFERENCES
http://en.wikipedia.org/wiki/Biodiesel
http://en.wikipedia.org/wiki/Biofuel
http://en.wikipedia.org/wiki/EROEI
http://www.biodiesel.org
http://alternativefuels.about.com
http://ezinearticles.com/?How-Is-Biodiesel-Made?&id=317090
UN bio fuels report
"With only 2/3 the energy of gasoline, ethanol costs more per mile". zFacts.com. 2007-04-27.
http://zfacts.com/p/436.html.
"Biodiesel 101 - Biodiesel Definitions" (?). National Biodiesel Board.

http://www.biodiesel.org/resources/definitions/default.shtm.
http://www.svlele.com/biodiesel_in_india.htm
27
http://www.biodieseltechnologiesindia.com/
http://www.ethanolindia.net/ethanol_govt.html
Biodiesel Association of India

http://www.bdai.org.in/
http://www.siamindia.com/
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html
http://www.icmrindia.org/casestudies/catalogue/Business%20Reports/BREP047.htm
http://www.iitk.ac.in/erl/article%20on%20biodiesel.html
http://www.unctad.org/en/docs/ditcted20066_en.pdf “UNCTAD report on Bio fuels in India”
28

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INTERNATIONAL

I would like to express immense gratitude to Prof. SRI RAM

I would also like to thank my mentor Subrita Sthapit for her

I would also like to thank people in automotive forums online

List of Information needed……………………………………………………………………………………………16

Review of Secondary Information………………………………………………………………………………….17

Government policy on Bio fuels………………………………………………………….…………………………22

Primary Research Design……………………………………………………………………………………………….24

A very large part of all this development is constituted by our means of

The challenge posed by this problem is the high involvement of technology in

As the name suggests, these machines or engines run on Biodiesel. Biodiesel is

Biodiesel can be blended with petroleum-diesel in any quantity ranging from 1

Although even B100 can be used in automobiles, but for optimum

One of the most common vegetables used in the production of Biodiesel is

The production of Biodiesel is done in a large manufacturing facility like those

Cost of Producing Biodiesel in India.

 Reduces fuel system wear and tear

Biodiesel has a number of quality standards across the world to ensure

The European Standard is EN14214 which is translated in to standards for

 D396-08b Specification for Fuel Oils (home heating and boiler

 Absence of free fatty acids.

 Low sulphur content.

 Cold Filter Plugging point

Global biodiesel production reached 3.8 million tons in 2005. Approximately

The first biodiesel plant in the country set up by SouthernOnline Bio

Bio Diesel in India is right now pertaining mostly to cultivation of Jatropha,

 Rural energy security is a fourth concern to which Biodiesel might contribute.

 Fifth, cultivation of TBOs can be conducive to the protection of natural resources. I

afforestation and soil improvement to prevent further degradation.20 Being more

Emissions B100 B20

Total Unburned Hydrocarbons -93% -30%

Sulphates -100% -20%*

THE RESEARCH PROBLEM

A market as viable as India poses a primary problem of acceptance. The

Is there a market in India for Environment Friendly Automobiles in the form

As of now, Mercedes Benz is doing extensive testing of its Biodiesel fleet in

LIST OF INFORMATION REQUIRED

Conducting a research study to understand the feasibility of environmentally

The following information is critical:

 Primary information to gauge willingness of consumers in metro cities to

REVIEW OF AVILABLE INFORMATION

The Indian Automobile Industry

Data Source: SIAM

The present installed capacity of four-wheelers in India is around 2.24

As per recent figures available from SIAM, Passenger Vehicles segment

Passenger Cars 25.65

As we notice, the domestic market according to SIAM has 15.96 % share of

The primary driver of India's growth as a consumer economy is increasing

Income growth is, in turn, dependent on sustaining overall economic growth in

PRODUCTS ALREADY IN THE MARKET

It is important to understand the previous reaction of the market to

Some products and their success in analyzed.

Honda Civic electric Hybrid

Now, here we have the quintessential example. A product which is available in

Mahindra Scorpio Micro-Hybrid

Reva Electric car

Still most people do not take it seriously as a car.

Government Policy on Biodiesel

As of now, no subsidies are being provided to the end consumer on

Although no subsidies have been provided to the end consumer, a lot of

PRIMARY DATA COLLECTION

The following metros should be focused for the research

UN bio fuels report