'For me this is it': Munro boss lays out electric aspirations

“I’ve worked in enough crap jobs that I want to be a nice employer, and make it really easy for people to come into work and do something that they are passionate about and actually enjoy.”

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Currently employing eight people at its “interim facility” in East Kilbride, Munro has built two working prototypes of its all-electric 4x4 designed specifically for some of the dirtiest all-terrain work. With 30 on pre-order and purchase commitments for a further 200 vehicles from big fleet operators, Mr Peterson and his partner, Munro chief technical officer Ross Anderson, believe they are gaining traction in their targeted markets.

Russell Peterson (left) and Ross Anderson (Image: Munro Vehicles)

Engineered to allow sectors such as mining, construction, utilities, agriculture and defence to decarbonise the biggest vehicles in their fleets, the Munro MK_1 features a 1,000kg payload, 3,500kg towing capacity, and a 16 hour off-road duty cycle on a single battery charge.

Munro’s co-founders are focusing initially on the utility and electric infrastructure sectors, as companies in this industry tend to have stringent environmental targets that come under close scrutiny from both investors and climate change campaigners. However, that wasn’t what they initially had in mind when the Munro journey was getting underway.

Driving a combustion engine 4x4 during an off-road camping trip, Munro’s founders were struck by the lack of electric-powered four-wheel drives designed for truly utilitarian work.

“There were all of these 4x4s and adventure vehicles that were diesel vehicles, and it seemed so counter-intuitive that you would take a diesel vehicle out into the wilderness which you love so much and drive around and pollute it,” Mr Peterson said.

READ MORE: Auto manufacturing returns to Scotland with electric off-roader

“So it really started [with] an adventure leisure enthusiast market [in mind], but what really surprised us when we started looking into it was just how much commercial opportunity there was. We thought the enthusiast and the leisure market would be the first mover, and then it would take a few years for commercial and fleet to catch up.”

Big fleet operators have been in the process of switching over to electric cars and vans for a number of years, but limited alternatives to their biggest and heaviest-polluting vehicles have limited just how far they can go in cutting their CO2 emissions. Encouraged by this gap in the market, Mr Peterson and Mr Anderson did a “complete pivot” to engage with the B2B market.

They initially funded the business themselves and in 2022 secured a £750,000 equity injection from London-based Elbow Beach Capital to finance construction of their first two prototypes. They started working on a Series A funding round towards the end of last year with an initial £15 million target in mind, but circumstances have forced that to be scaled back to somewhere between £2m and £5m.

“It’s been a bit of a difficult market for several reasons that are beyond our control, but the important thing is we are trying to remain lean and agile and quite pragmatic to the changing economy,” Mr Peterson said.

The Munro MK_1 (Image: Munro)

He added: “We are trying to do something that is really difficult. We didn’t quite anticipate how much this was going to take in terms of effort and energy.

“It’s not a bad thing, we all love a challenge, but it’s been like the cold harsh light of day these last few months: cool, we’ve got a prototype, now we need to build a batch of vehicles, and raise the money for that – it’s been a big learning experience.”

The company is looking for a larger site to create capacity for the projected construction of 250 vehicles in 2024. A couple of locations in central Scotland are currently under consideration, where Mr Peterson believes there is an “under-utilised” manufacturing workforce.

READ MORE: Munro fully electric 4X4 vehicle unveiled

“We have been chatting with local government and councils around development sites, and we are quite keen to stay in this area,” he said. “I think ultimately it will come down to the economics and the operational side of it – being able to get a site that is big enough to meet our needs.”

It’s been a tough journey to date, and one which is far from over, but with “some really quite big names” on the order book, Mr Peterson said morale remains high.

“The fuel that is keeping the fire burning is that we have these commitments from these interested parties, so now it’s a case of getting the product up to scratch and getting the company funded, and let’s move forward.”

Q&A

Where do you find yourself most at ease?

Probably hiking and exploring new places. I love the outdoors and fresh air. Walking is my meditation!

If you weren’t in your current role, what job would you most fancy?

I always joke that when I retire, I’d like to run a tiny coffee shop – no seating, very limited menu, perhaps even a different menu every day. A truly casual affair.

What phrase or quotation has inspired you the most?

“Have fun and the money will come” – Richard Branson. Chase enjoyment, not money!

What is the best book you have ever read?

First Overland by Tim Slessor is an incredible account of a true story of two university teams driving from London to Singapore in 1955. It was the first time someone had ever driven this route, and some of the people they met along the way had never even seen a car before. The route is unfortunately now impassable because of conflict in the Middle East – but the book paints a beautiful and vivid picture of a pioneering adventure during a much simpler time. It’s like a real-life version of Around the World in Eighty Days, and I think that’s why I enjoy it so much.

What has been your most challenging moment in life or business?

I recently had Covid and it was incredibly challenging. I couldn’t really walk or even leave my bed for a week – it was even a chore to stay awake. It was super scary and challenging for me – I’m an active person with a very active mind, but I just wasn’t getting any better. Luckily, I have made a full recovery, but I was worried that I wouldn’t ever get better, like so many people living with long Covid.

What do you now know that you wish you had known when starting out in your career?

People and relationships are far more important than contracts, or any piece of paper for that matter. Business is largely about the intangible – the people you meet and the team around you. Everything else is secondary.