Exclusive: Euler to Add New Manufacturing Unit as Capacity Ramps up

Euler Motors is preparing to add a new manufacturing unit as it ramps up capacity for its next phase of growth, signalling a clear shift from early market-building to manufacturing-led scale. The development comes soon after the company raised ₹437.5 crore in equity along with ₹250 crore in debt, with fresh capital now being channelled towards capacity expansion, product development and localisation.

“We have a three-wheeler line that can do 1,000 vehicles a month in a shift, and a four-wheeler unit doing about 400 to 500 vehicles. We are now adding a Unit 3 where we will take four-wheeler capacity to 1,000 vehicles a month,” said Saurav Kumar, Founder and CEO, Euler Motors, in a conversation with Autocar Professional.

The addition of the new manufacturing unit, referred to internally as Unit 3, is part of capacity expansion within the existing facility. Once operational, it will take Euler’s near-term production capability to 1,000 three-wheelers and 1,000 four-wheelers per month, creating a more balanced production base across product segments.

Over the past two years, the company has steadily scaled its monthly output from around 500 vehicles to nearly 1,000 vehicles. The current expansion marks the next step in that journey, as Euler looks to build the manufacturing backbone required to support higher volumes across both three-wheeler and four-wheeler electric commercial vehicle segments.

Capacity Expansion and Future Plant Roadmap

While the addition of Unit 3 addresses immediate capacity requirements, the company is already planning for the next phase of manufacturing expansion. Kumar indicated that Euler will evaluate setting up a significantly larger facility once utilisation levels at the current plant reach a defined threshold.

“Once we are at 80 to 90 percent utilisation, we will start looking at options to set up a 100 to 200 acre plant that can cater to future product planning and market growth. We are roughly a year away from those discussions,” he said.

Importantly, the proposed 100 to 200 acre plant is part of a future phase of expansion and is not linked to the ongoing addition of the new manufacturing unit. The current capacity build-up is aimed at supporting near-term growth, while the larger plant would cater to long-term scale, new product lines and broader market reach.

From Expansion to Scale

The manufacturing push reflects a broader transition underway at Euler Motors. Having established its presence across key markets and built its initial product portfolio, the company is now focusing on strengthening its industrial capabilities and improving operating leverage.

Monthly volumes are expected to move towards 2,000 units in the next phase, with a longer-term target of around 3,000 units per month. At this scale, the company expects fixed costs to be better absorbed, allowing margins to improve and bringing it closer to profitability.

Euler is targeting profitability over the next three to four years, with scale emerging as the primary driver. Kumar noted that while additional capital may be required as the company grows, the focus will remain on bringing in long-term partners aligned with its scale ambitions.

Capital, Localisation and Market Expansion

The recent fund raise, which saw participation from Lightrock, Hero MotoCorp and Blume Ventures, will support expansion across manufacturing, R&D and localisation. A key focus area will be reducing dependence on imported components and improving cost structures without compromising on product performance.

At the same time, Euler is expanding its market footprint. The company plans to grow from around 60 cities to 100 cities over the next year, aligning distribution expansion with its increasing manufacturing capacity.

Kumar said the company has remained measured in its growth approach, even during periods of strong subsidy support, choosing to prioritise sustainable scale over aggressive volume-led expansion.

With the addition of a new manufacturing unit and a future plant under consideration, Euler Motors is positioning itself for the next phase of the electric commercial vehicle market. The emphasis is now firmly on building manufacturing depth and scale, as the company moves towards becoming a more mature, volume-driven OEM.