Scottish 4x4 firm Munro eyes new UK factory in major expansion

Scottish EV start-up Munro is plotting a major expansion and new models as it aims to become a leading global supplier of off-road utility vehicles to the heavy industry sector. The company began taking orders for its first model, the Series-M, in 2023 and is well under way with small-scale production of the first customer cars at its East Kilbride base, where it employs between 20 and 30 people. But new CEO Avinash Rugoobur and CFO Tim Holbrow have ambitious plans to significantly grow its production footprint and global reach - with plans to open a new factory in the next year and eventually swell output into the thousands. Speaking exclusively to Autocar upon the announcement that they had been appointed to lead the firm, the two industry veterans – who met during their time working for Oxfordshire-based EV start-up Arrival – outlined a plan to scale the business from hand-building one or two cars a month to “the next order of magnitude”. Rugoobur, an engineer by training who was also previously head of strategy for General Motors’ Cruise self-driving operation, said that Munro “was the only company that made me want to get back off the bench into the starting 11” after his exit from Arrival. “I loved what they were doing as a small team, building really dedicated products,” he said. He was particularly attracted to the niche business case, with Munro explicitly targeting business customers rather than traditional retail consumers. "It was one of those companies that no one had heard of, and all they did was concentrate on building a vehicle in a nice part of the customer landscape: the commercial landscape that hadn't really been attacked before.” Under his stewardship, Munro will leverage that distinct positioning and the Series-M’s modularity to cater intricately to its customers’ requirements in an industry that is currently underserved by dedicated electric 4x4s. "The initial wedge that we're going after is heavy industrial: mining, forestry, search and rescue. Right now, what's happening in the industry is that vehicles are built and they're great but they're built for consumers,” explained Rugoobur. “Nothing is really purpose-built for these industries in terms of the EV 4x4 that we've got." Having lined up its first customers, the next priority for Munro’s new management is establishing a new UK factory, which will allow it to expand its output while maintaining the level of bespoke configuration it offers to customers. To that end, the aim is not to achieve mainstream manufacturer levels of output but rather to "scale to the size of the customer base we're going after". "We're talking hundreds with the capacity to go to thousands. We're not talking hundreds of thousands but very low capex and very flexible manufacturing technologies," Holbrow explained. He added that discussions were still ongoing as to whether Munro will continue to finish cars in the UK and export them or construct a bare shell and chassis at a central production hub and ship it to a smaller finishing facility abroad for completion. The ultimate aim was to "build close to the area we deploy a vehicle in", Holbrow said. "That's the trajectory over the next four to five years that we're working on." He noted that some customers could theoretically have up to 50 Munro vehicles on a given site, potentially boosting the viability of some level of local production. Establishing regional factories would also help Munro in its endeavour to minimise customer downtime, by enabling quicker repair and replacement of damaged parts - which could be sourced nearby rather than having to be shipped from the UK. Rugoboor highlighted the business opportunity that exists in offering more dependable fleets: "One of our customers says that for every seven years they lose one year in downtime. Think of the opportunity there is around that." The focus in the short term, however, Roguboor explained, is "on where our facility will be in the UK, what the supply chain looks like and starting to expand that out". Munro's new executives didn't identify any potential locations but said they plan to have a new site up and running within the next 12 months. There are no immediate plans to change the fundamentals of the Series-M, which has a 200-mile range, a 130kW charging capacity, locking differentials and formidable off-roading credentials. Holbrow said: "We will obviously make changes as we go forward, but actually this product is already award-winning, and it's already got really great feedback from people who use it. They've hit on some areas where it's even better than the existing vehicles that are available." Instead the focus is on maximising the Series-M's appeal by introducing new bodystyles and derivatives that will cater to different industrial requirements. "There is scope for multiple products within the series - multiple different configurations to serve the customer requirements," Rugoboor said, adding that the modular construction of the 4x4 means "there is no real limitation" to what form it can take. "Whether you take the existing Series-M and change the top hat [body] or widen or shorten the wheelbase, all those things are potential opportunities for us." Development of these new variants will be the responsibility of former Munro CEO Russell Peterson, who has moved into the newly created role of chief product officer. He said: "We set out to create an electric 4x4 that could genuinely outperform combustion-engine vehicles in the most demanding environments in the world, and we've done that. “When we started, we initially thought we could electrify existing vehicles but found the only way to truly meet customer needs was to build our own from scratch, the Series-M. "With that complete, moving into the CPO role lets me stay focused on what I love, whilst Avinash and Tim bring the commercial firepower to take the business to its next level. I can't think of a better team to do it.”

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Scottish 4x4 firm Munro eyes new UK factory in major expansion

New CEO and CFO unwrap plan to grow volumes into the thousands with global manufacturing network

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