Montra Electric expects its electric trucks to contribute more than half of its revenues in the long run, even as the company remains in the early phase of operations. The company is expected to break-even by next year.
P.V. Satyanarayana, Chief Business Officer, Montra Electric, told Autocar Professional that the company is working on a long-term plan to scale up volumes and revenues, with e-trucks projected to account for 50–55% of the total. “We are looking at becoming $1 billion by 2030. That’s what is the target which we are chasing right now. And that means almost like 50 to 55% of the revenue has to come from trucks,” he said.
The company runs four verticals: heavy commercial vehicles, mid & small commercial vehicles, last-mile three-wheelers, and electric tractors. Strengthening its EV lineup, Montra Electric launched the Rhino 5538 EV 4×2 TT, a 55-ton electric truck, at its Manesar facility. The model targets India’s emerging heavy-duty electric truck segment, which has strong growth potential.
The company’s current production capacity stands at 6,000 vehicles a year across two shifts, expandable to 7,500 units with a third shift. Production volume this year is expected to be close to 700 units, with the goal of reaching around 7,000 units annually in the next five years. “With this new line coming up, there are two things which we will be able to resolve. One is capacity enhancement… number two, we are also into working on multiple product lines,” Satyanarayana said.
Profitability and Break-Even Plans
On profitability, Satyanarayana said, “Right now, we are not making money, but I think in the coming year, we are expecting to break even.”
The company has no immediate plans to set up a new facility, as the current one is sufficient to meet near-term demand. “This can produce 6,000 vehicles per annum in two shifts. And immediately, there will not be any need for getting into any new facility. But as and when required, we will definitely get into it. But as of now, there are no plans,” he said.
Montra Electric operates under Murugappa Group, a 125-year-old conglomerate with revenue of Rs 902 billion and diverse operations spanning agriculture, engineering, and financial services.
At the group level, Rs 3,200 crore has already been invested. Further investments will be made as required, though Montra has not disclosed specific numbers for the EV truck business. “Multiple products which we are evaluating, we’ll be investing whatever is required for that. But right now, it’s not fair for us to declare any number. At the appropriate time, we will declare that number,” Satyanarayana said.
PM E-drive Certification Under Process
The company is also working on localization to qualify for the PM e-drive certification, which would allow its customers to avail incentives of up to Rs 9.3 lakh per vehicle from the government. “So for that, almost 75% of the vehicle has to be localized. Right now, we have already applied for certification. So we are ready for producing those vehicles once we get the certification,” he said, adding that Montra is on track to achieve 75% localization by March 2026.
Satyanarayana also underlined the growth potential in electric trucks, pointing out that less than 200 EV tractor-trailers were sold in India last year, compared to an annual diesel market of 60,000–70,000 units. “So there is a huge scope. What we are right now working on is how do we crack this, you know, running more number of kilometers. That’s where we are going,” he said.
The CBO added that Montra is also exploring second-life applications for used EV batteries, while vehicle scrapping will be aligned with upcoming government regulations.