As the cover was pulled back to reveal the new MK_1 electric 4×4 at the EICC in Edinburgh, there was a sense that Scotland might see a revival of its car-building past.

DIGIT was at the Munro launch event for the new EV 4×4, and there was a buzz and excitement around the fact that a young group of entrepreneurs had built the first vehicle from ground up in Scotland for 42 years.

The Glasgow-based EV manufacturer received £750,000 in pre-seed investment earlier this year from Elbow Beach Capital, who saw an opportunity to help decarbonise vehicle fleets within mining, forestry, and agricultural industries.

Munro is currently the only production car company based in Scotland, and said it plans to build 50 vehicles in 2023 before transitioning to a new purpose-built site near Glasgow in 2024.

As part of the move, the firm hopes to create 300 new jobs, with production increasing to 250 vehicles per year, with a strategic roadmap in place to deliver 2,500 units annually by 2027.

At the event, DIGIT caught up with Munro CEO Russell Peterson to discuss the new MK_1, the trials, and tribulations of starting a small firm in Scotland, and the Scottish EV revolution.

Munro’s journey to MK_1

In a major milestone for Scotland, the EV startup is the first car manufacturer to build at scale in Scotland since Peugeot-Talbot closed its Linwood plant in 1981, which the Rootes Group established in 1963.

Munro was founded in 2019 by Peterson and Ross Anderson, who had ambitions to manufacture their MK_1 all-electric vehicle, with trials being carried out on an older model over the past year.

CEO Peterson, who previously co-founded software company Bad Dinosaur, used funding from that enterprise and outside investment to start the company.

“I had left my software business, we had a bit of money together, and I said ‘you know what? Let’s build one [an electric 4×4] and see if it works,’” Peterson says of his inspiration for starting Munro.

“We have done a lot of research, and there seemed to be a very obviously gap where car manufacturers are trying to fill the vehicle space with parts off a Toyota Yaris, onto a pickup.”

Peterson notes that he and Anderson established early on that the chances of car parts to fail under heavy use tended to occur more quickly than heavy-duty vehicles.

“We said ‘that is not good. We need to look at it the other way’. Take components off heavy-duty vehicles and build a with them.”

The Munro MK_1 is designed using these solid materials, providing more durability than a typical 4×4, giving it an increased lifespan and durability.

When the question of why it has taken someone so long to consider something that seems obvious – building vehicles out of stronger materials to improve reliability – Peterson cites difficulties for large manufacturers.

“It’s hard for existing automotive [firms] to pivot that fast. When you look at Nissan, or Renault or Toyota, they are moving very slowly. They have combustion engines, they have their safe space, and they are moving slowly because it costs a lot of money to delete a production line and build a new one.

“We have got this new entry and we have a startup advantage. We have no technical debt and no preconceived ways of doing things.”

The startup challenges

Peter notes that starting a small company in Scotland is no easy feat, especially when it is around an area as niche as 4x4s, particularly all-electric versions.

He comments: “Heavy duty light vehicles are a niche market, but not enough of a niche for big firms to prioritise resources to doing them. So, we are well placed to just go in there and make the most of it.”

With the start-up advantage that Munro has, they can tap into the more premium building materials. The addition of making the MK_1 an EV puts it in a unique position, but as a small company, getting the message across to consumers is likely to be a real challenge.

Selling the idea that cheaper isn’t always better to a consumer who is looking to save money wherever he can is always difficult, particularly in the current economic climate.

“This is a big part of our challenge – getting our customers to think differently,” Peterson says.

“A lot of farmers, for example, have a vehicle, they buy the cheapest one to get from A to B, but if they can’t get from A to B, their farming production stops. This means you can classify their vehicles as a mission critical vehicle because it is as important as a tractor. If they can’t get to the field and they can’t get supplies to the field, their whole operation stops.

“But they pay the lowest price, and buy the cheapest car, and what we are saying is ‘look, if you have a mission critical vehicle pay a bit more, get something that doesn’t break down, and then surely your business benefits in the long run?’”

The Scottish EV Revolution?

So, what does Peterson believe an electric vehicle like the MK_1 could mean for the Scottish EV production market in the future?

He sees plenty of advantages to building an EV vehicle like his in Scotland. He notes an interesting supply chain, and manufacturing which, although isn’t traditionally automotive, can be quickly applied where required. Additionally, he sees a strong talent pool, and interest from government to support a project like his.

However, being based in Scotland has its disadvantages as well: “There is this weird vagueness about Scotland, where people easily overlook what is on offer here,” he says.

“Having lived in Scotland for so long, I say ‘there is a whole ecosystem and infrastructure here, and a willingness and keenness to see a project to succeed, why would you not tap into that?’

“When you look at vacant industrial space in Glasgow, there is enough space to make 20 Munro factories. I have had calls with journalists asking, ‘where are you going to build your factory’ and I think ‘I have got my pick, because there are walk-in facilities of 200,000 square foot just waiting for manufacturing companies’.

“I think you don’t have to have all the solutions in Scotland, but having an ecosystem, in terms of tech, Edinburgh has a great tech ecosystem. We tapped into that, we exploited that, and made a successful business.”

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Peterson adds that, now more than ever, he is also starting to see the same grassroots coming up in manufacturing, with a keenness and willingness to expand here in Scotland: “There is a bit of a hunger there, we just need something to funnel that supply chain into.”

However, in terms of government support, Peterson said he feels he has been let down. Despite interest in such projects, and an urgency to reach net zero, Peterson said he has found himself having to jump through hoops to get the support he requires.

“What we need is real, direct action. We need someone in government to say ‘we want to support Munro; we want to create those jobs’ and we will tie ourselves to those targets.

“If the government wants to say ‘you contractually must make 300 jobs’, we will do it. Give us the money, and let’s build the thing. But getting to the stage has been so difficult. I think it is stifling innovation because we have conversations with other countries neighbouring Scotland, and it is a completely different story.”

He adds: “What I am worried about is that they approach us when it is too late stage, and then offer us support. The problem is, we are early stage, and we need the support now. We need people to take risks now.”

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