Montra Electric, the electric vehicle arm of the Murugappa Group, is preparing to expand its small commercial vehicle (SCV) portfolio with the launch of a new sub-3.5-tonne electric truck next year, and this will likely be followed by another launch of a light commercial vehicle (LCV) in the 3.5–7.5-tonne category, according to a senior company official.
The Chennai-based company launched its first SCV – the 3.5-tonne Eviator – earlier this year, and the new model will be in the same 2–3.5-tonne category but at a lower tonnage. Montra sees strong demand potential for EVs in the sub-3.5-tonne goods carrier space, driven by better economics, growing last-mile delivery needs and private companies’ push for cleaner mobility solutions.
“On this platform [Eviator], we will have around 10 variants across different battery configurations and application configurations. In addition to that, we will very soon be entering the slightly lower tonnage segment with another product, within the same 2–3.5-tonne category. After that, maybe we will have a higher-tonnage product also. These are the immediate plans,” Saju Nair, Montra Electric’s CEO for the SCV division, told Autocar Professional.
India’s SCV segment has emerged as the largest category in the goods carrier market, driven by the rapid rise of e-commerce, urban consumption and last-mile logistics. In FY25, total goods carrier CV volumes, excluding three-wheelers, stood at almost a million units – 956,671 units to be precise.
Of this, SCVs, covering 2-3.5 tonne trucks in the N1 category, accounted for almost one in three – 310,696 units. Vehicles under 2 tonnes added another 155,927 units, while the LCV category, in the 3.5–7.5-tonne range, contributed 61,422 units. The sub-3.5-tonne mini-truck and pickup market has expanded sharply over the past decade, rising from around 360,000 units in FY14 to nearly half a million. This growth underlines the segment’s use case across urban and semi-urban logistics, and is in line with India’s expanding retail and delivery infrastructure.
Industry sees the SCV segment as the “sweet spot” for electrification, given its shorter and more predictable operating routes, moderate payloads, and high utilisation in last-mile delivery cycles. These conditions make the economics of electric mobility more compelling for consumers.
According to Montra Electric, electrification in the SCV category remains at an early stage, with EV penetration currently at around 1%, but is expected to accelerate quickly. With several new electric SCV models being launched into the market, Nair anticipates penetration to rise to 5% next year, potentially reaching 20% by the end of the decade.
Regarding the launch of the LCV, Nair said: “We are right now studying that market and seeing what the sort of electrification potential is there and if the volumes make sense, then we will go into it next year.”
Right now, Montra Electric sells its SCV through 20 touchpoints across the country. The number will be increased to 25 by the end of this financial year. “This year our target is to get into as many use cases as possible, push vehicles to as many large customers as possible. Then from next year, we will focus on scaling up the volume,” Nair said.
Driver comfort, better load-space design and improved energy efficiency are areas where customers feel less confident about electric SCVs and LCVs. Montra sees this as a big opportunity to offer differentiated electric offerings.
The company sees multiple tailwinds, such as the government push for cleaner transportation and the creation of an EV ecosystem, and a rising trend from private enterprises to meet ESG targets by transitioning their fleets to EVs, driving growth in these segments going forward.
The new model launches are part of a broader push by the company to build a full-range electric CV portfolio, spanning heavy trucks, mid and small CVs, last-mile three-wheelers and electric tractors. Montra has set an ambitious target of achieving $1 billion in revenue by 2030, with more than half expected from its M&HCV business.
For the SCV and LCV business, Montra has a dedicated manufacturing facility in Ponneri, Tamil Nadu, with an annual capacity of 50,000 vehicles spread across a 5-lakh-sq-ft area.
Meanwhile, the M&HCV business is housed under IPLTech Electric, which runs a plant in Manesar, Haryana. The division recently introduced the Rhino 5538 EV 4×2 tractor-trailer, strengthening Montra’s presence in the heavy electric truck market.