Kinetic Green Energy & Power Solutions on Tuesday announced a collaboration with global EV maker Aima Technology Group to co-design and develop electric two-wheelers for the Indian market. Together, they plan to launch at least three new models in 2022-23, including models from Aima’s high-speed scooter platform. This marks Kinetic’s re-entry into the scooter segment riding on the electric wave.
Kinetic and Aima have entered into a long-term technical collaboration to develop electric two-wheeled vehicles and both partners would also work on a roadmap to explore a joint venture in future.
“Within a year, Kinetic and Aima further plan to explore a joint venture where Kinetic shall leverage its brand and production capabilities and Aima can leverage its technology, R&D and global outreach to expand massively,” said Sulajja Firodia Motwani, founder and CEO, Kinetic Green.
The Aima collaboration would accelerate product development and speed up launches into the market as Kinetic Green would be able to tap into the Aima portfolio and quickly develop the local supply chain, she said.
Through this partnership, Kinetic plans to aggressively scale up its E2W business and aims to build capacity to 500,000 units a year in the next two years, Firodia Motwani said. Kinetic is hoping to replicate the success of its two-wheelers, Kinetic Honda scooters and Kinetic Luna mopeds, with its new range of electric two-wheelers. These brands still have high brand recall and goodwill in the market, Firodia Motwani said.
Aima is listed on the Shanghai Exchange and is among the largest e-vehicles manufacturer in the world with a presence in 87 countries and global sales of more than 50 million E2W units. Aima has over 1,000 models in its product portfolio, which covers E2W, E3W and E4W. Initially, the two-wheelers developed under the collaboration will be marketed under the Kinetic brand and acknowledge the Aima technology support. The partners are exploring launching co-branded models in the future.
Aima would be assisting Kinetic with design, support for modifications and rapid localisation of the models to suit Indian customer requirements. Kinetic would be localising production, bringing in the understanding of the Indian market and two-wheeler consumer insights into the business.
Kinetic Green already has a presence in the electric vehicle industry with a range of electric three-wheelers and a re-entry into the two-wheeler market with its electric vehicles. Apart from the Aima collaboration, Kinetic Green is all set to launch the electric Luna in July 2022, Firodia Motwani said.
Two scooters, Kinetic Zing and Kinetic Zoom have already been launched through a contract manufacturing deal with Varcas Automobiles. Kinetic Green is setting up a new E2W factory at Supa (located between Pune and Ahmednagar). Around `100 crore would be invested in the next 24 months here.
Su Yuhang, president of Aima Technology Group, said Aima had seen India’s great potential in green mobility, particularly in the year 2021 when the E2W grew by 631%. “India will always be Aima’s strategic priority for global investment to cater for the need for green and smart mobility,” she said.
Kinetic had a good track record of joint ventures with international brands and together with Sulajja Firodia’s entrepreneurship and their talent pool, Aima can co-develop products for Indian customers through localisation, Yuhang said.
Chennai-based G-Power Energy & Technology, a partner of Great Power, China, one of the leading Lithium cells and battery packs maker, played a significant role in forging this partnership. G-Power will continue to provide support in localisation and support to augment the technology.
Kinetic Green is expected to reach revenues of around Rs 300 crore by March 2022, with sales volumes of 35,000 units of electric vehicles. The company has set a target of Rs 1,000 crore top line and Ebitda of Rs 10 crore next fiscal, Firodia Motwani said.