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Converting conventional cars into hybrid and solar vehicles

Periodic Reporting for period 1 - HySolarKit (Converting conventional cars into hybrid and solar vehicles)

Reporting period: 2015-05-01 to 2015-10-31

In the last decade, increasing effort has been put worldwide in reducing the impact on fuel consumption and greenhouse gases (GHG) emissions from passengers cars. HySolarKit introduces for the first time the possibility to modify a
conventional car into a plug-in solar-powered hybrid electric vehicle, allowing reduction of fuel consumption and GHG emissions by ~25%, with limited investment cost 10-15% of the cost of a new electric vehicle, acceptable payback (3-4 years) and without invalidating, yet increasing performance and safety.

The innovation integrates for the first time state of the art technologies (in-wheel motors, Li-ion battery, flexible PV panel) with an advanced control system, self-adaptive to different vehicle and in-wheel typologies and features.
HySolarKit unique selling points are: i) successful coupling with solar energy ii) applicability to existing fleets, with limited investment with respect to a fleet electrification, iii) flexibility of energy sources.

This flexibility, unique on the market, allows aiming both to aftersales and new cars market, corresponding to the industry need to be relieved from the weight of emission cuts by operating on the existing fleet, a possible basin of 284 Million cars in EU.

The cut in emission due to a massive hybridization has the potential to allow citizens to upgrade their cars and city authorities to respect imposed pollution limit.
During HySolarKit, SME-Instrument Phase-1 project, a detailed feasibility study was completed, providing a set of analyses and strategies for the successful definition and commercialisation of the product. The study has covered major key topics to ensure the right pathway to market, modelling the strategy for SME-Instrument Phase 2 project based on barriers to overcome. The results were gathered In Deliverable D1.1 Feasibility report, including a business plan, available upon request, whose main results are hereby summarized and ordered.
- A partner search was done and completed. It allowed to confer the project an industrial dimension by joining in the consortium 2 innovative and established SMEs along with industry leaders in the automotive - OEM and Aftermarket - sector: they will provide technical expertise and business advice and network. The frame is completed by dedicated business consultancy firms to check sustainability.
- A technical assessment was necessary: at first to define the Make or Buy choices for manufacturing, then to describe the structural barriers related to technical aspects to optimize in the kit. Risks and contingency in the implementation were defined. The automotive classes addressed by the kit during the project were defined and baseline configurations were agreed. The requirements and the addressed level for type approval were decided. The Industrial costs have been preliminary evaluated; projections based on scale economy and battery prices forecasts helped to define available costs in the future commercialization.
- The partner agreed to form a NewCo to deploy their IPR. A detailed exploitation and business plan agreed by the partners has been developed, providing a clear mission and vision, with achievable and realistic objectives for the HySolarKit product. It includes a market and competition analysis, showing a comparison of the Kit to client needs and competitive technologies. A potential for sales have been drafted based on an accurate analysis of EU global vehicle fleet, considering surveys to define target prices for best large product acceptance. The business model and one business case are also presented. The latter has appointed Malta as testing ground with most favourable conditions. A 5-year financial projection and ROI is also presented for the NewCo, to be assessed in Phase-2
- An operational capacity study has been performed to assess operational requirements to implement HySolarKit. It provided a plan for the set-up and running of production, and it takes into account running requirements, HR and competence needs and supply chain models (e.g. for the procurement and testing).
- The IPR securement, intangible assets definition and the freedom to operate analysis among different partners have been reached, to ensure future exploitation.
- Finally a detailed planning and strategy for the SME Instrument Phase 2 project is provided and presents funding, preliminary work-plan and tasks.
The action can reach a huge number of users: private car owners or fleets owners.
This phase assessment has been drafted defining a TAM based on the numbers of on-the-road cars (classified by age) for the aftermarket channel, and on registering cars for the OEM market.

The reachable overall market includes 130 Million vehicles. It was narrowed considering: (i) technical data, (ii) cars age and type, (iii) 6 major countries (Italy, France, Germany, Spain, UK and Poland), (iv) users drivers and intention to purchase, verified through dedicated surveys coupled to valuable JRC investigations on EU level addressing Europeans driving habits and potential to use Electric Vehicles.

As a result, the final user base has been estimated between 300.000 and 3.000.000 users, strongly depending on the price for their decision to purchase.
The addressable users, consequently, can range between 11.000 and 450.000 by targeting innovators and early users kind of customers with dedicated campaigns.

Finally, the NewCo to be generated by the project can reach a turnover around 20 Million Euros per year in 5 years from the possible Phase-2 project ends, with a starting investment of around 3.3 M€. A minimum ROI around 70%.

Europe demands a cut on emissions which will be averagely 26% for major OEMs by 2020. Manufacturers have estimated this effort as a 1000-2000 € added on each new car
The socio-environmental impact of HySolarKit and Hybridization can thus be huge at international level, cutting more than 25% (not considering solar panels effect) of emissions on each car mounting the kit: each users on an average mileage can save more than 1.000 €/year, recovering the cost of the kit in 3/4 years depending on its version.

The consortium wants to work for a Phase-2 award by the SME-instrument call, to assess this data and to bring the kit on the market in no more than 2,5 years.
Hy Solar Kit Logo, as in Phase-1 proposal