Euler Motors, an automotive and energy start-up aims at speeding up the adoption of light electric commercial vehicles by offering the entire electric mobility as a service. The company was founded in the year 2018 and is currently focussed on 3 and 4 wheelers light commercial electric vehicles for cargo and passengers. Euler Motors already has its tie-ups with brands like BigBasket, EcomExpress, Udaan, and BlueDart. Euler Motors introduced multiple logistic portfolios and has numerous plans in store for the future. Express Drives recently had an interaction with Saurav Kumar, CEO and Founder, Euler Motors to understand the impact of Covid-19 on the company’s business, future product strategies and more.
Express Drives – What has been the impact on business, courtesy Covid-19?
Saurav – Euler Motors has been working strenuously for its customers during the lockdown period. With deliveries and lease becoming critical during the pandemic and the lockdown, Euler Motors stepped up and made sure deliveries of essentials were done. Through our lease business we recorded over 5 Lakh deliveries in Delhi/NCR during the period of lockdown, serviced over 2 lakh customers, while reducing carbon emissions to the tune of over 200 tonnes.
To meet the increased demand for last mile deliveries, we worked extensively on the software capabilities of the vehicle on the backend to enhance the capabilities of our battery pack and controller to enable better range and load bearing capacity of our vehicles. Further, with essential practices of social distancing, we realized that fleet owners will now need connected vehicles to manage their fleet. We have worked around adding several software features on the backend that will help fleet managers to streamline their operations and be prepared for eventualities. We incorporated new features in our new vehicles for optimizing fleet operations with real time updates, updates on battery operations and preventive maintenance.
What has been the impact of Covid-19 on Euler Motor’s strategies and plans? Also, how have the numbers affected with the pandemic? If you can give some figures?
Covid-19 and the lockdown has certainly slowed down the business and economic pace across sectors. At Euler Motors, we are focused to bring light commercial electric vehicles for the cargo segment. We have partnered with leading e-commerce companies like BigBasket, Ecom Express, Udaan, MilkBasket etc. to provide the electric mobility stack as a service. In these testing times, we saw that there was more pressure on the last mile delivery which led to 15-20% increase in our lease business. Fleet owners and Ecommerce players have realized the benefits of EV for their inter-city movement. We are hoping to launch our 3W Cargo Commercial Vehicle by early Q1 of 2021.
How do you expect the market to react post lockdown, especially the commercial EV segment?
The Covid-19 pandemic and the lockdown have made people realize the importance of clean energy and environment friendly alternatives. Also, people have become more cost sensitive as essential items have become a priority. In a nutshell, all these factors would lead to a surge in the demand of EVs as it provides environment friendly alternatives along with lower cost of deliveries. We have already seen that the cargo segment is already getting back to pre-lockdown level at a much faster rate than the passenger segment – In Fact the 3W Cargo segment is already at 70-80% of pre-covid level.
Euler Motors raised Rs 20 crore recently in fresh funding round. Any more details on that and how do you plan to use this funding?
We have raised INR 20 crore as a part of ongoing Series A funding led by the Inventus Capital India. The other investors in this round of funding include Blume Ventures, Singapore based Jetty Ventures India Investments, and Udaan’s co-founder Sujeet Kumar. Earlier, as part of pre-series A round, the company had raised INR 15 crore from Blume Venture, US based Emergent Ventures and Andrew Lee. With this series A, Euler Motors has so far raised more than INR 35 crore.
We want to accelerate the adoption of commercial electric vehicles by creating a full stack ecosystem with Indian centric EVs, charging and service station networks. The Series A funds will be primarily used for hiring talents, R&D and launching our vehicles across the Indian key cities with a focus on localization of the supply chain.
Going forward, what are the plans in terms of vehicle launches?! What all can we expect to see in the coming months?
The first two years have been proof of concepts in terms of vehicles, successful partnerships and we wanted our customers to accept electric vehicles as a viable option for delivery and we have done it successfully. It has given us a lot of confidence. We are now planning to launch our 3-wheeler cargo light commercial vehicle in the Q1 2021. The focus will be to scale up the business and ramp up the production to meet the demands in the markets. We understand that EV adoption needs adequate support in terms of charging points and service stations. We are focused on developing and installing infrastructure for electric vehicles and plan to take it to our target markets in the coming years.
Please shed some light on the brand’s presence in India along with its customers and expansion plans.
Euler Motors addresses industry barriers and focuses on increasing the adoption of light electric commercial vehicles by offering the entire electric mobility as a service. It enables customers to avail the benefits of the e-vehicles for a defined period. We are already providing our prototype vehicles to companies like BigBasket, Ecom Express, Udaan, Milk Basket. These companies have employed 200+ e-vehicles for their last-mile delivery. We have also established a network of 100+ charging infrastructure in Delhi NCR for charging 200+ electric vehicles at any point.
Last, what do you think about the future of commercial EV business in India, both short and long term?
The pandemic has brought in a realization of the criticality of last mile logistics and home delivery. These trends are here to stay for a long time given the social distancing norms and practices. Further, the pandemic has also reemphasized concerns towards environment and pollution control.
The approach towards electric vehicles & its ecosystem, therefore, would be key post the COVID19 scenario. The last mile delivery model would be the most preferred mode of transport for companies delivering goods and commodities. The environmentally conscious companies and consumers would then prefer solutions that not just prove to be profitable in the post pandemic period but also contribute towards the environment. The growth path for EVs will be led by the commercial spaces, specially LCVs which are expected to get a nudge in the next two- three years.
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