Euler Motors has become the second-largest player in India's four-wheeler electric light commercial vehicle (4W LCV) cargo segment, behind Tata Motors, with its market share reaching approximately 25% over the past year, compared with less than 2% previously.

Electric vehicle penetration in the 4W cargo category increased from around 1% to approximately 5% during the same period. The company attributed the increase to its two four-wheeler products, the Storm EV and Turbo EV 1000. The company said the shift towards electric commercial vehicles has been supported by prices moving closer to those of comparable diesel vehicles, combined with lower running costs.

The Storm EV is a 1.5-ton electric commercial vehicle equipped with advanced driver assistance systems (ADAS), while the one-ton Turbo EV 1000 is targeted at a range of cargo applications. Kumar said the four-wheeler cargo segment had historically remained dependent on diesel because electric vehicles had not offered the required combination of performance and affordability. Euler spent four years developing its four-wheeler electric commercial vehicle portfolio, including two years on research, development and validation before its products were launched.

Delhi remains Euler's largest market, with the company holding nearly 50% of the local electric 4W cargo segment. Its market share has reached approximately 25% in Maharashtra, where electric penetration in the category stands at 8.7%, and around 32% in Rajasthan, where penetration has crossed 11%.

Growth is also coming from Tier 2 and Tier 3 cities. Key markets include Sikar in Rajasthan; Solapur, Satara and Sangli in Maharashtra; and Tiruppur, Salem and Tiruchirappalli in Tamil Nadu. In Sikar, Euler said its dealer recorded demand from dairy and milk businesses, gas cylinder distribution, fast-moving consumer goods (FMCG) and water fleets within three months of opening.

The company has expanded its retail network, while prioritising dealer profitability and customer service rather than simply increasing the size of the network. It plans to add another 100 touchpoints during FY27.

Euler's four-wheeler manufacturing facility in Palwal, Haryana, was established with an investment of Rs. 100 million (US$ 1 million). The company has also established a new research and development facility and is evaluating another manufacturing facility to support its expansion.

Euler expects electric vehicle penetration in the 4W cargo segment to reach 15-20% in the near term. Kumar also expects the shift towards electric commercial vehicles to accelerate over the next few years. He said the sub-one-ton commercial vehicle segment, which is largely used for last-mile cargo deliveries, could reach at least 50% electrification within five years and potentially move higher. For commercial vehicles above one ton, he said charging infrastructure and product affordability remain important factors.

State policies and commercial vehicle electrification

Kumar has urged state governments across India to follow Delhi's approach to promoting electric commercial vehicles, saying such policies can help reduce urban air pollution while addressing cost, financing and infrastructure barriers to EV adoption.

The Delhi government notified its EV Policy 2026 on July 1st, under which the registration of new petrol, diesel and CNG auto-rickshaws and N1 goods vehicles will be prohibited from January 1st, 2027. N1 refers to light goods vehicles with a gross vehicle weight of up to 3.5 tons.

Under the policy, buyers of electric N1 goods vehicles will receive a purchase incentive of Rs. 100,000 per vehicle in the first year, Rs. 75,000 in the second year and Rs. 50,000 in the third year.

Kumar said commercial vehicles have a significant impact on urban air pollution and described Delhi's policy as a holistic approach. He said other states should also consider similar measures, pointing to Maharashtra, Odisha, Meghalaya, Madhya Pradesh, Telangana, Tamil Nadu and Uttar Pradesh, where state-level incentives or other measures are already supporting electrification.

He said electric commercial vehicles can reduce operating costs for fleet owners where the technology is suitable, while government support can contribute to adoption.

Revenue growth and business expansion

Euler expects its revenue to double again in FY27 to around Rs. 8 billion. Revenue increased from approximately Rs. 190 million in FY25 to Rs. 4.02 billion in FY26, while the company had already crossed Rs. 4 billion in revenue during the first half of FY27, roughly matching its full FY26 revenue.

Kumar said the company is expecting another year of around 100% growth, with four-wheelers accounting for a significant proportion of the increase.

Kumar said Euler currently has around 29-30% of the electric N1 segment and is focused on meeting customer demand. The company expects to reach break-even within three years.

Localisation, costs and PLI concerns

Euler has continued to increase localisation, with its three-wheelers reaching around 90-95% localisation, excluding battery cells.

However, rising input costs remain a challenge. Kumar said EV manufacturers have faced cost increases of around 6-7%, with lithium, magnets, copper, aluminium and other materials becoming more expensive. Memory chip costs have also increased sharply, which he attributed to higher demand from the artificial intelligence (AI) industry.

Kumar also raised concerns about the production-linked incentive (PLI) scheme for automobiles. According to him, Euler and other EV start-ups believe the scheme puts them at a disadvantage compared with larger established manufacturers receiving automotive PLI benefits.

He said Euler faces an estimated 12-15% disadvantage compared with manufacturers receiving the automotive PLI incentive. The company has submitted its case to the government and is working with electric two-wheeler start-ups including Ather, River and Ultraviolette to seek changes to the scheme. Kumar said the government has heard their concerns and is reviewing the matter.

India's electric commercial vehicle market is continuing to develop, with product adoption, electric vehicle penetration, charging infrastructure and government incentives affecting the pace of electrification across different vehicle segments.