Kinetic Green eyes Rs 500 crore revenue from electric two-wheeler biz | The Financial Express

Kinetic Green eyes Rs 500 crore revenue from electric two-wheeler biz

Kinetic Green has earmarked investment upto Rs 400 crore for the next four years towards expanding its electric vehicle offering.

Kinetic Green eyes Rs 500 crore revenue from electric two-wheeler biz
Kinetic Green aims to expand its retail network from existing 300 dealers to over 1,000 dealers by end-FY2024.

Kinetic Green, a leading electric two- and three-wheeler manufacturer has forayed into the high-speed electric scooter category with its first product, Zing HSS at Rs 85,000 (post FAME II subsidy). This will be its third e-scooter offering after Zing and Zoom low-speed electric scooters that were launched last year.

The EV maker is present in both L3 and L5 categories of the electric three-wheeler segment and serves the last-mile mobility space.

Speaking to Express Mobility, Sulajja Firodia Motwani, Founder & CEO, Kinetic Green said, “We did not enter the two-wheeler space in the beginning due to our non-compete clause with Mahindra 2 Wheelers that was there till 2019.”

“The three-wheeler space was the low-hanging fruit from the customer acceptance point of view. We started our two-wheeler journey in 2020 and first entered the low-speed category due to its acceptance. We wanted to understand the segment better, build our base in terms of distribution, manufacturing, product development, and this was all happening during the Covid disruption,” added Motwani.

According to her, the company has gained a lot of consumer and market insights and is thus now ready to expand its product portfolio. “We have now sold close to 40,000 low-speed e-scooters and have a successful presence. We are profitable in that segment and not burning cash.”

It is important to note albeit on a low base, the electric two-wheeler segment had almost doubled in CY2021. The sales of high-speed e-scooters increased to 2,33,971 last year from 1,00,736 units in 2020. Thanks to the central and state government subsidies, new entrants and the choice of products for consumers.

Sulajja Firodia Motwani, Founder & CEO, Kinetic Green

In sync with the growing trend, “We have also established a network of more than 300 exclusive dealers for our electric two-wheelers. We have built a large R&D setup and own manufacturing capabilities over the last 12 months,” shared Motwani.

Interestingly, while it already has manufacturing facility in Ahmednagar with capacity to produce upto 7,500 two-wheelers a month, it is commissioning a new plant at Supa, near Pune, which will have a capacity to produce more than 25,000 two-wheelers a month.

Kinetic Green has made an initial investment of Rs 50 crore in its two-wheeler business and plans to invest more than Rs 400 crore over the course of the next four years.

New products in the e-two-wheeler space

Given the fact that the Indian electric two-wheeler segment is widely dominated by scooters, Motwani revealed that the Zing HSS is the first product and the company has plans for five more launches in the high-speed electric two-wheeler segment.

“We have developed and will launch the Kinetic Flex next month which comes with 70kmph top speed and is FAME II approved model. The e-Luna in the high-speed category is built completely ground up with 100% local supply chain components and will come in multiple formats, battery sizes and even performance,” she added.

The Kinetic Zing e-scooter.

The other two models are being co-developed with its partner AIMA Technology Group, which is said to be the world’s largest electric two-wheeler manufacturer.

In a bid to garner maximum traction, Kinetic aims to target the mass market segment, and does not want to get into the electric motorcycle segment or make a scooter that costs upwards of Rs 1.5 lakh and thus move away from its focus of making last-mile mobility sustainable and accessible. The company also plans to expand its reach from the existing 300 dealers to 600 by end of FY2023 and 1,000 by end of FY2024.

New partnerships and JV with Lamborghini

Detailing Kinetic Green’s plans about new partnerships, Motwani elaborated that , “On the product’s front we already have strong partnerships. We have Lamborghini for the Golf karts, AIMA in the e-two-wheeler space, and in the e-three-wheeler space we are already strong.”

“On the technology platform, not just connected vehicle applications, but for IoT, remote diagnostics, vehicle health, EV ecosystem like charging infra, battery swapping, that is something we are working on the strategic front. The tech platform will become a backbone for all the products, that is something that we are doing on the inorganic front,” she added.

It was in December 2018, that Kinetic Green had entered into a JV with Italy’s Tonino Lamborghini to design and manufacture premium electric and solar golf carts for the global market under the Tonino Lamborghini brand.

Though the product development was underway, Covid-19 hampered the production timelines as the partners felt it was not the right time. Motwani said that the company is targeting a launch within this calendar year, “I think the first golf cart will be launched towards end-December. But it will be only in 2023 that you will see the larger rollout and the distribution network. During the Covid period we focused more on the two- and three-wheeler segment.”

The golf carts when launched will be in the two-, four-, six- and eight-seater configuration for different applications ranging from leisure to hospitality. 

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