Mumbai:
Electric three-wheeler maker Euler Motors is eyeing a steep target of generating revenues upwards of ₹300 crore in FY23, about 15 times more than the expected revenue this fiscal year, as it increases its operations to about a dozen cities.
To realise this steep topline ambition, the company would have to sell around 8,500 of its HiLoad electric three-wheelers meant for ferrying goods. It presently has an order book of around 3,500 units, largely through institutional orders from companies like Flipkart and Ecom Express, who are trying to meet their sustainability goals as well as local government mandates.
Euler began sales in January and expects to close this year with revenues of ₹20 crore, said Saurav Kumar, chief executive of Euler Motors. The company is also looking to more than double its headcount over the next year from of about 650 employees at present, he said.
While Euler has managed to put together a significant order book from ecommerce and quick delivery companies, to sustain in the long run it will need more orders from retail customers. These are largely owner-operators of three-wheelers in the last-mile delivery business.
The three-wheeler cargo segment gets three-fourths of its business from retail buyers, by Kumar’s own admission. It will be an uphill battle for a new entrant to make a dent in a market where brand recall plays a big role and is presently dominated by the likes of Mahindra and Piaggio.
“In the last three years, Euler has done a lot of work on the ground. We have been to every sabzi mandi (fresh produce market), every gas (cylinder) distributor, every water bottle distributor to get their inputs,” Kumar told ET. “We continue doing that. You have to be close to your customer.”
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