Gaurav Kumar, Head of Supply Chain & Manufacturing at Euler Motors, shares insights into the company’s approach to localized electric vehicle (EV) manufacturing and its impact on the industry.
The Importance of Localized EV Manufacturing
Localized EV manufacturing is vital for several reasons. It reduces costs by minimizing reliance on imports, which in turn makes EVs more affordable for consumers. Local production also ensures that vehicles are tailored to meet the unique demands of Indian roads and climate. Euler Motors has achieved a significant milestone with 95% localization of vehicle components and 90% localization of battery packs, excluding cells. This effort not only strengthens the domestic supply chain but also aligns with the Indian government’s goal of having 30% of new vehicle sales be electric by 2030.
Ensuring Performance Parity with ICE Vehicles
Euler Motors ensures that its locally manufactured EVs, like the HiLoad EV, match or exceed the performance of traditional internal combustion engine (ICE) vehicles. The HiLoad EV features a payload capacity of 688 kg, about 30% more than many ICE vehicles. Its IP67 lithium-ion battery pack, with active liquid cooling technology, performs optimally in temperatures ranging from -40°C to 70°C, offering a distinct advantage over ICE vehicles. Advanced software like Euler Shepherd further optimizes vehicle performance through telematics and predictive maintenance.
Managing a High-Quality Parts and Component Network
Euler Motors manages a network of over 300 suppliers to mitigate risks and ensure high-quality materials. Stringent quality control measures are implemented to maintain high standards. In-house development of critical components like motor controllers and battery management systems (BMS) further supports our commitment to quality.
Achieving BOM Cost Reduction and Component Localization
The company has significantly reduced Bill of Materials (BOM) costs through extensive component localization. By lowering logistics and procurement expenses, Euler Motors has improved gross margins and optimized production processes. The VA-VE (Value Addition, Value Engineering) process and careful cell chemistry selection contribute to cost-effective and high-performance batteries.
Advanced Manufacturing Practices and Technologies
Euler Motors employs rigorous manufacturing practices including comprehensive supplier evaluations and detailed inspections. Our state-of-the-art facility in Palwal, Haryana, features cutting-edge research labs and a battery manufacturing unit. We focus on alternative sourcing, volumetric reduction, and indigenization to enhance product quality and reduce costs.
The Future of Local vs. Global EV Production
As the EV industry grows, India’s mechanical supply chain is adapting to include new supply chains for batteries, drivetrains, and power electronics. Euler Motors leverages its robust supplier network and technological innovations to maintain a competitive edge in the Indian commercial EV segment.
Addressing Challenges in Localization
Challenges in localizing EV manufacturing include reliance on imported lithium-ion cells, which comprise a significant portion of EV costs. Euler Motors has made substantial progress in localizing components despite these challenges, tailoring vehicles to Indian market needs.
Benefits of a Localized Supply Chain
A localized supply chain reduces transportation emissions, enhances resource efficiency, and supports local economies by creating jobs. By prioritizing sustainability and a green value chain, Euler Motors meets consumer demand for eco-friendly transportation while contributing to environmental protection.
Advice for Enhancing Localized EV Manufacturing
To enhance localized EV manufacturing, companies should build robust ecosystems by collaborating with component manufacturers and focusing on key parts to localize. Early engagement with suppliers and cross-functional collaboration are crucial for maintaining quality and meeting production demands.
Adapting to Market Demands and Technological Advancements
Euler Motors continuously adapts to evolving market demands by developing products like the HiLoad EV, tailored to specific commercial needs. Investments in R&D and adherence to global standards ensure that our EVs meet high performance and reliability standards. With expansion plans and a commitment to innovation, Euler Motors is poised to lead in the sustainable transportation sector.