Que: AMP describes itself as India’s first asset-light, tech-enabled EV car subscription platform. What makes your model different from leasing or fleet ownership companies?

Ans: AMP is a full stack EV subscription ecosystem for sharing benefits of car ownership/usage and not a traditional leasing company. With its unique operating lease model, it maximises financial efficiency with near zero transmission loss between Car Owner (Businesses) and Car Subscribers (Salaried Professionals). What’s the difference?

1. The "Asset-Light" Marketplace Model
Traditional fleet companies own thousands of cars, which is asset heavy and time bound. AMP is asset-light, and doesn’t own the vehicles, therefore enabling a long term view on managing the cars digitally for:
● Businesses: Who own the EVs to avail of full ownership expense offsets
● Salaried Professionals: Who drive premium EVs without any long-term commitments or liabilities arising from ownership.

2. Turns a "Liability" into a "Productive Asset"
Car depreciation is partly useful for businesses, and of no use to individuals. AMP utilise this discord to accelerate:
● Cashflows for Businesses: EV car related accelerated depreciation and other expense offsets to bolster cash flows significantly.
● Capital Efficiency for Businesses and Professionals: EVs on AMP come without any capital investment /commitments for businesses due to "predictable lease" from a credit rated subscriber on the AMP platform. Cashflow for business. Savings for Professionals.

3. Subscription vs. Traditional Leasing
Traditional leasing often involves complex contracts and hidden commitments, AMP’s subscription is designed to be "stress-free":
● Zero Upfront: There are no down payments, no EMI worries.
● All-Inclusive: The subscription covers maintenance and insurance, allowing the driver to simply "push play" and drive.
● Flexible Upgrades: Unlike the lock-in of a 5-year loan, subscribers can upgrade to newer EV models frequently with no lock-in.

4. Tech-Enabled "Smart" Operations
AMP uses a proprietary technology to manage the entire lifecycle of the vehicle:
● Smart Matching: Credit verification and "social scores" to ensure cars are only leased to trusted, pre-screened individuals.
● Full Lifecycle Management: Platform manages everything from purchase, loans, insurance, lease, re-lease, resale and maintenance apart from payment tracking and collections.

Que: Can you walk us through how AMP’s subscription model works from vehicle onboarding to customer delivery and lifecycle rotation?

Ans: Phase 1: Vehicle Onboarding (The Business Side)
AMP engages with businesses to add EVs to their balance sheets.
● Asset Deployment: Businesses (Private Ltd, LLPs, or Partnerships) acquire premium EVs on their balance sheets.
● Cash Flow Optimisation: These Businesses benefit from accelerated depreciation, full expense recognition and zero down payment to get immediate free cashflow.
● Platform Integration: AMP subscribers utilise these EVs, converting them from a standard depreciating asset into a "revenue-generating asset" for their owners.

Phase 2: Subscriber Verification and Matching
Before a car is delivered, AMP uses a rigorous "Smart Matching" process to ensure the security of the asset.
● Pre-Screening: AMP curates salaried professionals and consultants
● Smart Verification: Potential subscribers undergo background checks, credit verification, and a review of "social scores".
● Matching: Eligible subscribers are matched with a vehicle that fits their lifestyle aspirations.

Phase 3: Customer Delivery and Subscription
The delivery phase focuses on a "stress-free" experience for the subscriber.
● Zero-Liability Entry: No down payments, entry fees, or EMI worries.
● All-Inclusive Service: The subscription covers full insurance and regular maintenance.
● Predictable Costs: Flat subscription, bypassing the unpredictable costs of traditional car ownership.

Phase 4: Lifecycle Operations and Rotation
AMP manages the vehicle throughout its tenure on the platform to ensure utilisation.
● Smart Lifecycle Management: the platform handles daily operations, including payment tracking, insurance renewals, and maintenance scheduling.
● Vehicle Rotation: Existing subscribers can exit their subscription or upgrade easily, with no lock-in, unlike traditional loans. AMP re-leases returned vehicles to a similar professional
● Asset Exit/Resale: At the end of the EV's optimal lifecycle on a balance sheet, AMP facilitates resale of the preleased asset to maximise residual value.

Que: What makes EVs attractive from an investment standpoint today? How does depreciation actually work in favour of investors in your model?

Ans: Electric vehicles are attractive investments due to a combination of market growth, government support, long life, and specific depreciation caveats that aren't available for traditional internal combustion engine (ICE) vehicles.

● Rapid Market Growth: India's EV market is transitioning from early adoption to a mature phase, with significant growth in passenger car registrations expected through 2026.
● Lower Operating Costs: EVs offer much lower per-kilometre rates and minimal maintenance needs because they have fewer moving parts than petrol/diesel cars.
● Government Incentives: The Indian government supports EV adoption through the FAME scheme (subsidies) and a significantly lower GST rate of 5 percent (compared to 28 percent or more for ICE vehicles).
● Corporate Sustainability: Many businesses are investing in EV fleets to meet ESG (Environmental, Social, and Governance) targets and reduce long-term operating expenses.

In AMP’s model, the EV is a financial tool to improve cashflow.

The 40 percent "Accelerated Depreciation" Rule

Under the Income Tax Act, "Pure Electric Vehicles" qualify for a 40 percent depreciation rate. For comparison, standard petrol or diesel cars typically only qualify for 15 percent.

How this works for a business Owner:
1. Expense optimisation: When a business buys an EV, they can "write off" 40 percent of the car's value as a business expense in the first year. This improves the company's cashflows significantly.

2. The AMP Twist (Dual Benefit):
o In a traditional model: Depreciation comes with a liability for the entire loan repayment tenure
o In the AMP model: The EV is added to your balance sheet, gives 40 percent depreciation, and generates monthly lease from a verified subscriber.
o Result: Accrued cashflow benefits / savings and monthly rental income (from the subscriber), along with full resale proceeds. The depreciating asset turns into a high-yield investment, with an infinite IRR and ROC, as there is no capital investment.

Que: How do you mitigate risks such as battery degradation, resale uncertainty, and technology obsolescence?

Ans: AMP only deals with premium EVs from select OEMs to mitigate the core risks associated with EV ownership, battery health, resale value, and technology shifts. Additionally Smart Lifecycle Operations and Tech-Enabled Platform distributes any latent risks over the entire lifecycle.

1. Battery Degradation
● Real-Time Telematics: AMP uses a digitally smart platform to monitor vehicle health and battery state-of-health in real-time.
● Preventive Oversight: By tracking charging patterns and usage, the platform can flag behaviours that accelerate degradation (like frequent deep discharges) and ensure the asset remains high-performing.
● Manufacturer Warranties: The platform leverages industry-standard 8-year/160,000 km manufacturer warranties with partner OEMs to cover significant battery failures, reducing the financial risk to the asset owner.

2. Resale Uncertainty
● Continuous Revenue Generation: Unlike private ownership, AMP converts EVs into "revenue-generating / pre -leased assets" from day one. When the EV is to be sold, much of its cost has been recovered through recurring lease payments and cashflow efficiencies
● Professional Resale Management: AMP’s lifecycle operations include managing the secondary market transition. Resale or "re-leasing" of vehicles to second-life users, ensures the asset is never idle.
● Smart Monitoring: Leasing only to pre-screened, "trusted" subscribers and managing charging, ensures vehicles are better maintained than typical rental or fleet cars, preserving their residual value.

3. Technology Obsolescence
● Flexible Subscription Cycles: The "salaried professional" who wants the latest tech can upgrade to newer models at will, without being stuck in a 5-year ownership loop.
● Tiered Re-Leasing: As newer technology emerges, older functional EVs can be re-positioned and re-leased, extending their productive life.
● Asset-Light Strategy: AMP as an asset-light platform has the agility to pivot / distribute its portfolio quickly to follow market trends.

Que: Do you think subscription-led EV adoption, particularly in the B2B sector, will scale more quickly than traditional ownership models?

Ans: Based on current market trends and the financial architecture of the EV sector, subscription-led adoption in the B2B sector is poised to scale significantly. This growth is driven by a shift from capital expenditure (Capex) to operating expenditure (OpEx), to bypass the "adoption bottleneck".

The B2B sector is already leading this transition with commercial vehicles which have high utilisation rates, making the Total Cost of Ownership (TCO) benefits of EVs immediate, despite low resale values due to heavy wear and tear. AMP makes the TCO hypothesis even more attractive by mitigating wear and tear downsides. With AMP car owners get:

● Immediately Cash Flow Positive: Traditional ownership requires down payments and capital commitment for 5–7 years. With AMP the same is not applicable preserving cash for core operations.
● The 40 percent Tax Advantage: Businesses can claim 40 percent accelerated depreciation on EVs annually. AMP’s model utilises this to turn a "depreciating asset" into a cashflow generating machine which is a major incentive for corporate balance sheets.
● Risk Transfer: Subscriptions remove the three biggest "anxieties" of EV ownership: battery degradation, resale value uncertainty, and technology obsolescence. The resale, battery and tech risks are shared across the eco system, and not limited to a single owner through asset utilisation and periodic resale, re-lease.

Que: If you look ahead five years, what will define success in India’s electric mobility market: scale, profitability, or ecosystem integration?

Ans: Over five years, growth drivers are primarily a combination of profitability, ecosystem integration, the growing shift to invest rather than spend and ease of access. This is further enhanced by corporate ESG needs and current policy landscapes that incentivise both businesses and individual subscribers.

Significant progress is underway due to the above in 2026, and as adoption grows it will lead to a positive snowball effect in the next few years. Subscription models have the potential to disintermediate EV car ownership in the salaried demographic in the next decade.