Euler Motors is spearheading the electric vehicle (EV) revolution in India, a transition that is both inevitable and crucial for sustainable mobility. As a pioneer in the field, Euler Motors stands out not just as another EV manufacturer but as an innovator redefining the EV landscape through a holistic ecosystem-driven technology approach.
In an exclusive dialogue with Abdullah, Rohit Gattani, VP – Growth & Vehicle Financing, Euler Motors talks about the company’s financing model and how can financiers leverage the data provided.
What are the current challenges and opportunities in the electric vehicle financing sector, and how have these evolved in recent years?
With the surge in EV adoption, the financing sector has exciting opportunities to collaborate with EV players, facilitating further growth in the sector. Particularly in the 3W category, customers may have to pay high interest due to credit score limitations and uncertainties about resale values. Hence, raising awareness about EV performance, battery life, and charging infrastructure reliability is crucial. In addition, the industry should also focus on advancing battery technology, offering extended warranties, and enabling lenders to track vehicle usage daily, providing them with assurance about repayment and further facilitating EV financing.
Financial institutions, including banks, NBFCs, and fintech startups, can provide diverse financing options to offset initial costs and cater to the customer’s needs. Financial incentives like tax savings on interest paid towards EV loans and bank-provided discounts on green loans further drive EV financing over traditional options. In addition, allowing financing of electric vehicles under priority sector lending would reduce the cost of finance. Battery and part recycling programs can complement secondary market development, bolstering the confidence of financiers.
Tell us about Euler Motor’s key products and what differentiates their products from its domestic competitors?
Our goal has been to outperform traditional ICE vehicles with our EVs, focusing on meeting Indian businesses’ needs by boosting profitability and cutting costs. The new HiLoad EV 2023 boasts the industry’s highest 13 kWh battery pack, certified for a range of 170 km (Real RangeTM 100-120 km), and offers a 30% higher payload capacity of 688 kg and earnings than any other 3W cargo in India. Features include 200 mm disc brakes for driver comfort and safety, with reduced maintenance costs thanks to its electric drivetrain.
The HiLoad EV stands out as the only 3W vehicle offering fast charging capabilities, covering 50 KM in just 15 minutes. This unique feature makes it perfect for commercial applications, setting it apart from competitors. Additionally, our battery technology is tailored for safety and performance in India’s diverse terrains and temperatures.
Our IP67 13 kWh battery pack offers extended driving ranges suitable for commercial applications. This battery capacity ensures efficient and reliable performance for delivery services, logistics, and other operations, contributing to the adoption of sustainable transportation solutions. Additionally, our EVs feature advanced components like the Battery Thermal Management System (BTMS), motor controller, and vehicle control unit for superior control and performance compared to traditional vehicles.
Our vehicles also come equipped with advanced telematics and software assistance for an unmatched customer experience. Euler Shepherd, our proprietary software, offers real-time fleet tracking, vehicle monitoring, and charging status. We’ve made significant strides in connected vehicles, optimizing the underlying network layer within the Telematics Control Unit (TCU) to gather extensive data through our Euler Software Stack (ESS-5.0).
What does Euler Motors offer to financiers that other competitors might not be offering for underwriting the loans?
We offer financiers customized dashboards with real-time vehicle performance and health analytics, enabling informed decision-making and risk mitigation. Unique features like immobilization enhance security, while comprehensive data insights reduce the likelihood of defaults.
In addition, our pre-emptive monitoring system boosts vehicle uptime and addresses potential battery issues proactively, minimizing operational disruptions and maximizing returns for financiers. This not only improves the reliability of financed vehicles but also enhances their resale value in the secondary market.
What is Euler Motor’s financing model and how can financiers leverage the data provided by Euler Motors to find the residual value of the product and to enable the secondary market?
Euler Motors has equipped financiers to access various aspects of vehicle usage, including performance metrics and maintenance records, to forecast depreciation and gauge the condition of our products over time. They can conduct a comparative analysis and monitor market trends to assess the resale value of Euler Motors’ offerings. Additionally, insights from customer feedback and satisfaction data provide valuable information on perceived quality, influencing market demand and residual value.
Moreover, financiers can leverage data on EV lifecycle, battery degradation, and industry trends to develop predictive models for accurate estimation of residual value. By providing comprehensive vehicle history and performance data, financiers facilitate smoother transactions, enhance buyer confidence, and foster a robust secondary market for Euler Motors’ EVs.
Any key expansion plans or upcoming projects the company is working on?
We are gearing up for significant growth in the upcoming fiscal year. With a target revenue range of INR 195-200 crore and a goal of surpassing 500 vehicles in monthly sales by FY24, the company is set to expand its presence to 40 cities nationwide. This expansion will build upon its current footprint of 22 cities and 21 showrooms, including major markets such as Bengaluru, Chennai, Chandigarh, Jaipur, Hyderabad, and Kolkata.
To facilitate this expansion, we are investing in scaling up our production capacity through the development of a new facility. With an investment of INR 130 crore, our new facility is projected to boost capacity from 3,000 to 35,000 vehicles per year. This strategic initiative underscores the company’s commitment to meeting growing demand and extending its market reach.
