Kinetic Green Energy on Thursday launched the E-Luna Prime, a multi-utility electric two-wheeler for the entry-level commuter segment. Founder & CEO Sulajja Firodia Motwani tells Narayanan V about the launch, the challenge of sustaining EV demand as subsidies phase out, expansion plans, competition from lower-GST ICE scooters. Edited Excerpts:
Q: What’s the target market for E-Luna?
Currently, our electric two-wheeler portfolio includes Zing, Zoom, E-Zulu and E-Luna. We are also planning to introduce a family scooter in the next few months. Within electric two wheelers, our focus is going to be on the E-Luna segment, which is the crossover motorcycle or electric utility vehicle. Most of the other e-scooters in the market today are only urban scooters costing over Rs 1 lakh. E-Luna is suitable both for urban market and rural areas, personal use and small businesses, delivery, and e-commerce. Our focus is more on the middle class and lower middle class in big cities and smaller towns. 70% of our 400 dealers are in B&C towns. Our scooter range is also between Rs 60,000 to Rs 1 lakh. We think that’s the sweet spot for people.
Q: What are your international plans?
We have just started our export journey for electric two-wheelers and three-wheelers, with shipments to Sri Lanka, Nepal, and Africa, so far. The E-Luna also has strong export potential in Southeast Asian markets like Vietnam, Malaysia, and Indonesia, where this crossover format is popular. Exports should contribute about 5% of revenues this year, and we aim to grow that to 15% in the next 2-3 years. In July, we launched electric golf carts through a joint venture with Torino Lamborghini SPA, which holds 30%, while Kinetic Green holds 70%. These carts are designed in Italy, but the engineering and supply chain are entirely in India. 95% inventory from this business will be exported, with 5% for the domestic market.
In the long run, our vision is to become a $1 billion (₹8,000 crore) company in 5-6 years, with electric two-wheelers contributing 50% of revenues, and electric three-wheelers and golf carts about 25% each. We are currently at around ₹500 crore and target ₹1,200 crore next year.
Q: Will US tariffs impact the golf cart business?
About a month ago, the US imposed a 200% anti-dumping duty on Chinese golf carts, creating a big gap in the market. While there is also a 25% additional tariff on imports from India, the general expectation is that this could be addressed at the government-to-government level in the coming months. Even with the current duty structure, we remain competitive against China. If the additional 25% tariffs are lifted, it would only improve our position. The global golf cart market is valued at around $5 billion, with North America accounting for roughly 40%. Our distributors target sales of 1,000 units initially, scaling up to 20,000 over six years, with the goal of capturing about 10% market share in 5-6 years.
Q: The GST rate cut has made ICE two-wheelers cheaper. Will it impact EV sales?
I believe the bigger change is in people’s perception of EVs and their willingness to consider them. Today, over 25-30% of customers are actively thinking about buying an EV. Prices have also come down, so if an ICE scooter costs ₹90,000-1 lakh, you now have many EV options in the same range. Also, battery prices are steadily falling too. Five years ago, they were about ₹16,000 per kWh; today, for two-wheelers, we procure them at around ₹9,000 and are working to bring that down to ₹8,000. That would mean another 10% reduction, driven by higher cell production, innovation, and lower tooling costs. EVs already benefit from 5% GST versus higher rates on ICE vehicles, and most states have waived road tax, giving buyers another 10% advantage. So overall, EVs will become more affordable.
Q: EV subsidies are nearing their end. Will there be an extension?
It doesn’t look like it. The subsidies have been coming down step by step — they started with 40%, then 20%, 15%, 10%, and now we are at only 5%. As of March 2026, that 5% is also likely to become zero. Of course, the industry has proposed to the government that we are well begun but not halfway there, and it would be useful to have the subsidy for another 3-4 years. The subsidy is not for manufacturers, it is for customers, to reduce the price difference until we reach around 20–25% EV penetration. At that point, we will have critical mass — the ecosystem will be developed, charging infrastructure will be in place, and many people will already own EVs.
But at 6–8% penetration, we are not at critical mass. If demand is there, investments will come, mass production will happen, costs will come down, and charging infrastructure will develop. Otherwise, it is the chicken-and-egg problem. We have requested the government to consider another three years, but it doesn’t look very likely. If that doesn’t happen, we will have to find other ways to ensure demand continues.