According to you, what are the requisites for creating a localised quality EV value chain that can outperform ICEs?
Although India already has a well-established mechanical supply chain for parts and components, the EV industry is now investing in a new supply chain network for batteries, drivetrains, and power electronics. The next focus should be on innovative battery assembly, increasing automation and standardisation. This will enable the production of vehicles on a large scale with consistent quality output across all deployments.
Companies should seek vendors willing to join them on their innovation journey. At Euler Motors, we have a vast network of over 300 suppliers who are growing with us in the EV segment.
Considering the constantly changing trends in the global supply chain, companies must also be prepared to optimise and plan for potential contingencies. Building alternative strategies to tackle shortage problems, such as having an alternative vendor base and internal capabilities, can help prevent disruptions to production.
At Euler Motors, we have been working closely with suppliers from the R&D stage to localise our components and design EVs specifically for the Indian market. We do not retrofit; instead, we have built our products from the ground up, using a localised component, supply chain, and partnerships. As a result, we have already achieved 95 per cent localisation of our EVs.
Tell us in detail about your manufacturing facility for EVs. Are all the parts and components assembled in this facility or imported?
Our manufacturing plant operating in NCR consists of a semi-automatic state-of-the-art shop floor and a battery line for liquid-cooled battery pack technology. While we manufacture our vehicles here, some parts and components are either sourced or imported.
From a component standpoint, we have achieved 95 per cent localisation for the vehicles and 90 per cent for our battery packs, excluding the cell. These also include many parts and component systems which are 100 per cent localised in India for the first time, where the team innovates and manufactures parts in India.
What amount of investment have you made towards manufacturing EVs? Any plans to increase it further?
We made an investment of Rs 150 crores towards setting up our new manufacturing facility. We have built one of the largest factories, spread over 12 acres of land in the NCR, where we have begun mass production. Currently, we are producing 500 units per month from one of our largest factories and plan to expand up to 1,500 units per month by the end of this year.
What are the new trends you are seeing in EVs and battery production?
One of the new trends in EVs and battery production is the increasing demand, driven by a combination of factors, such as rising environmental concerns, government regulations, technological advancements, and customer awareness. As more people become aware of the benefits of EVs, such as their lower running costs and reduced environmental impact, there has been a growing interest in EVs among consumers.
In addition, government regulations and incentives, advancements in battery technology and charging infrastructure are also generating demand for EVs.
Another trend is the growth of battery production. As the demand for EVs increases, there is a corresponding need for batteries to power them. Startups and legacy OEMs are investing heavily in developing new battery technologies and expanding their manufacturing capabilities to meet this demand.
Besides, a new ecosystem for components and battery tech is emerging. This includes new players entering the market, such as companies focused on developing battery materials and components as well as existing players expanding their offerings to include EV-related products and services. This is creating new opportunities for innovation and collaboration across the industry.
As per the government's Vahan data (as of March 3), sales of electric vehicles (EVs) in India have surpassed the 100,000-units milestone for the fifth consecutive month. What, according to you, are the factors that have contributed to this growth?
This trend is driven by the increasing emphasis on the lower total cost of ownership, better economics, and operational benefits among the key drivers across the EV two and three-wheeler industry, prompting significant investments in EVs by these players to ensure that their operations are both cost-effective and sustainable. Commercial EVs are leading the way as they are ideal for last-mile delivery due to their high manoeuvrability and small carbon footprint, making them an attractive option for many delivery companies. E-commerce and 3PL players were the first to adopt EVs, and now the retail segment too is going electric.
Tell us in detail about the new products and innovations you will be launching soon.
We recently launched the advanced version of HiLoad EV 2023 - with the highest battery pack and range in the 3W cargo segment. The new HiLoad EV 2023 comes with the industry's highest 13 (12.96) kWh battery pack, 170 km ARAI certified range (Real RangeTM 100-120 km), and a 30 per cent higher payload capacity (688 kg) and 30 per cent earnings than any other 3W cargo in India.
We aim to become one of the dominant players in the commercial EV market; hence are focussing on this category for now. However, we are not restricting ourselves to any one product. Every time we come up with a product, we want it to be different, not just better, than any other product in the market. We will share when we are ready to go out.
We have heard that Euler Motors have designed and manufactured their own battery packs to support Indian roads and extreme temperatures with active liquid cooling technology - a first in the commercial vehicle segment. Kindly shed light on it.
We have built a custom 12.96 kWh IP67 Lithium-ion battery pack boasting industry-first innovations such as battery thermal management systems and liquid cooling.
Our liquid-cooled battery system is designed to meet the demands of commercial fleet operators, who need vehicles that are: reliable, efficient, and costeffective. This technology enables the battery pack and motor to operate within an optimal temperature range, enhancing the vehicle's performance and increasing its range. The performance of our vehicles is seamless in all weather conditions making it highly suitable for the Indian market. Additionally, it prolongs the lifespan of the battery and motor, making our vehicles dependable, economical, and efficient.
What are the challenges that are still hindering the growth of the EV in India?
The demand for EVs is increasing, especially in the commercial sector, and is expected to continue to grow in India. However, customer adaptability is linked to awareness and availability of powerful vehicle options, with high upfront costs often being a barrier. Competitive pricing and product differentiation can help overcome this challenge. Limited awareness of the total cost of ownership (TCO) and the longterm benefits of owning an EV too hinder adoption. In addition, the lack of charging infrastructure and financing options are obstacles to widespread EV adoption, despite competitive TCOs. Solving these challenges is crucial for the EV industry's growth in India.
EVs are seeing increased demand from non-metros or precisely from Tier 2 and 3 cities. What are the key factors contributing to this trend?
EV demand is rising in India's Tier 2 and 3 cities due to growing awareness of environmental issues, cost benefits, and reduced financing obstacles. Infrastructure concerns have decreased due to increased charging infrastructure investment, and government incentives have also contributed to the trend. This increased demand in Tier 2 and 3 cities are generating new business opportunities and supporting economic development, and overall, the EV ecosystem is better developed, and acceptance is increasing.
An innovation or technology that has helped you to reduce BOM cost and overall component localisation?
VA-VE (Value Addition, Value Engineering) is a process we use to reduce the BOM cost and overall component localisation. The process involves several steps, including component sizing, alternate sourcing, order volume, cell chemistry selection and analysis, simulation, and testing and validation for weight reduction.
Cell chemistry selection is a crucial aspect of VA-VE as it can significantly impact the cost and performance of the battery. By selecting the right cell chemistry, we ensure that our batteries are cost-effective and have high energy density.
Recycling EV battery is another challenge, given it has toxic materials. How can we resolve this issue?
As the EV industry grows, the issue of battery waste and toxicity becomes increasingly crucial. However, there is a potential solution that can reduce the impact of discarded battery packs: the second life of battery packs.
Typically, the first life of an automotive battery pack is between 25-40 per cent Depth of Discharge (DoD) usage, after which the battery pack can still hold a significant amount of energy. Instead of simply discarding these packs, we can repurpose them for nonautomotive applications, such as cell towers, where the residual values of the batteries can still provide value.
By exploring the second life of battery packs, we can reduce the overall environmental impact of the electric vehicle industry and find new ways to use these valuable resources. Companies need to consider the lifecycle of their products and find innovative solutions like this to minimise waste and maximise sustainability.
