Euler Motors, a Delhi-based electric vehicle (EV) startup, has decided to lay off 10% of its workforce, affecting approximately 180-200 employees. The company explained that the layoffs are part of its restructuring efforts to enhance customer satisfaction and investor expectations of greater efficiency amid changing global circumstances.
The announcement follows another EV startup, Bounce, which also announced mass layoffs a few months ago. According to a Euler Motors spokesperson, the company is determined to restructure its operations to deliver the best possible results to its stakeholders.
The EV startup further stated that it would continue to maintain year-on-year growth with a strong product order book, underscoring its unwavering commitment to developing the most superior products that deliver the best return on investment (ROI) in its target categories.
Euler Motors, founded in 2018 by Saurav Kumar, offers EVs for commercial applications, including cargo and passenger segments. The company has developed a range of electric three-wheelers that are suitable for intracity deliveries and fleet operations. Euler Motors has also partnered with various OEMs and suppliers to produce indigenous components, thereby reducing its reliance on imported parts.
According to industry experts, the electric three-wheeler market in India has tremendous growth potential as the demand for last-mile connectivity solutions increases. With its cutting-edge technology and innovative business model, Euler Motors is poised to capitalize on this opportunity.
However, like many other startups, the company has faced several challenges in scaling up its operations. The COVID-19 pandemic and its subsequent lockdowns have disrupted supply chains, caused logistics bottlenecks, and reduced customer demand, putting immense pressure on companies’ finances.
Moreover, EV startups have to compete with established automobile players, who have deep pockets and extensive experience in the industry. Nevertheless, the Indian government’s push towards a greener economy and increasing awareness about the environmental benefits of EVs have created a favorable environment for startups like Euler Motors.
In recent years, the government has introduced several policies and incentives to promote the adoption of EVs. For instance, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme provides financial incentives to buyers of electric two-wheelers, three-wheelers, and four-wheelers.
Additionally, the government has reduced the goods and services tax (GST) on EVs from 12% to 5%, exempted them from road tax, and provided other benefits like free parking and toll exemptions. These measures have made EVs more affordable and accessible to consumers, thereby boosting their demand.
In conclusion, Euler Motors’ decision to lay off 10% of its workforce may be a temporary setback for the company, but it is part of a broader strategy to enhance its competitiveness and deliver value to its stakeholders. As the EV market in India continues to evolve, Euler Motors will need to stay ahead of the curve by innovating and adapting to changing market conditions. With its strong technology foundation, skilled workforce, and a commitment to sustainability, Euler Motors is well-positioned to succeed in this exciting and dynamic industry.