Sulajja Firodia Motwani, founder of the Pune-based company, said there has been a “dramatic transformation” in consumer preference for electric vehicles over the last few months, a lot of which can be attributed to the revision in incentives under the FAME (faster adoption and manufacturing of electric and hybrid vehicles) II policy.
Motwani, who is also the CEO, said earlier electric vehicles were too expensive for consumers wishing to make the switch, but with price parity emerging after the revision in the incentive scheme, buyers have become positive.
Buoyed by the rising demand, Kinetic Green expects monthly revenue to touch Rs 50-60 crore by April, up from Rs 5 crore in June 2021.
“Now they (consumers) feel not only am I going to save on fuel every day, I don’t have to pay a large premium upfront,” said Motwani. “It has made them think of EVs/ consider them as a product to buy… I am seeing that there is definitely going to be a positive momentum and in FY23. Kinetic Green is aiming to be a Rs 1,000-crore company based on the strength of EVs.”
Kinetic Green aims to close the ongoing financial year with total sales of 40,000 units, and thereafter expects to grow volume three times in FY23.
“Overall, there has been a consistent government policy whether it was GST (for EVs its only 5%), state governments have come forward, MoRTH has waived permits for electric three-wheelers, and now this FAME II booster–I think it is an overall culmination of these various factors which is leading to better economics for the EV customer,” said Motwani. “There are some weak links. We still have to create a charging infrastructure. But there are no show-stoppers.”
To tap into the potential demand boom for electric two-wheelers, Kinetic Green recently entered into a technical collaboration with China’s largest electric two-wheeler maker Aima Technology Group. As per the agreement, Aima will assist Kinetic Green in localising its products for the Indian market. Kinetic Green is also working on reviving the Luna brand in an electric avatar. Along with three models from the Aima collaboration, Kinetic Green is looking at having six electric two-wheelers in its portfolio by the end of this year.
Kinetic Green is also looking at ramping up its production capacity to 500,000 units a year in the next 24 months. At present, the company has capacity to produce 100,000 two-wheelers and 50,000 three-wheelers per annum. To expand reach, the company aims to increase dealerships to 500 over the next couple of years from 150 now.
