Kinetic Engineering To Establish a $250 Million Electric Vehicle Subsidiary

Kinetic Engineering (KEL), the Kinetic Group’s flagship company, has announced the formation of a subsidiary company focused on the electric vehicle (EV) segment.

The subsidiary will have an authorized capital of up to $250 million, and the company will own more than 51% of it. KEL would use its strong technical knowledge and vast manufacturing experience to house the entire EV portfolio, including components and assemblies, to scale up operations and capitalize on future opportunities.

Kinetic is currently developing new products to meet the country’s growing demand for electric mobility. It is working on a wide range of products, including axels for electric three-wheelers, gearboxes for e-two-wheelers and three-wheelers, frames for e-two-wheelers, and other components.

Recently, the company completed orders for the development of chassis and other parts for electric moped manufacturers. It also received a gearbox order from a major three-wheeler manufacturer.

Mr. Ajinkya Firodia, Managing Director of Kinetic Engineering Limited, stated, “In the last year, electric two-wheeler sales have exceeded 356,000 units, and electric three-wheeler sales have exceeded 223,000 units.” Globally, all major players are discussing electrification. With such a rapid transition from lC vehicles to EVs, we are pleased to announce the formation of a new subsidiary with the clear goal of being a part of the electric mobility growth story.”

Kinetic Green, Kinetic Group’s electric vehicle division, manufactures battery-powered three-wheelers, e-scooters, and e-cycles.

In the first half of the calendar year 2022, retail sales of EVs totaled 390,399 units. This represents a 333% increase over the 90,102 vehicles sold during the same period last year. In total, 240,662 electric two-wheelers were sold in the first half of 2022, representing a 656% increase over the 31,823 units sold in the same period last year.

According to Niti Aayog and the Technology Information Forecasting and Assessment Council, electric two-wheeler sales could reach 22.02 million by 2031 if battery costs fall by 8% CAGR, and vehicle power increases by 20% by 2024, and demand incentives continue until 2031.