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Kinetic Engineering (KEL), the flagship company of the Kinetic Group, announced the formation of a subsidiary company focusing on the electric vehicle (EV) segment.
The company will own more than a 51% stake in the subsidiary, which will have an authorized capital of up to ₹250 million (~$3.15 million).
With the formation of the new company, KEL would use its strong technical knowledge and vast manufacturing experience to house the entire EV portfolio, including components and assemblies, to scale up its operations and exploit future opportunities.
Kinetic is currently developing new products to meet the rising requirements for electric mobility in the country. It is developing a diverse class of products, including axels for electric three-wheelers, gearboxes for e-two-wheelers and three-wheelers, frames for e-two-wheelers, and chassis for e-three-wheelers.
The company recently finalized orders for developing chassis and other parts for electric moped manufacturers. It also bagged an order for a gearbox for a leading three-wheeler manufacturer.
Managing Director of Kinetic Engineering Limited, Mr. Ajinkya Firodia, said, “The electric two-wheeler sales in the past one year have crossed 356,000 units, and that of electric three-wheelers crossed 223,000 units. Globally also, there are talks with all major players on electrification. Such a rapid pace of change from lC vehicles to EVs needs a very clear and strong focus, and we are pleased to announce the formation of the new subsidiary with the clear objective to be part of the growth story of electric mobility.”
Kinetic Green, the EV arm of Kinetic Group, manufactures battery-operated three-wheelers, e-scooters, and e-cycles.
Retail sales of EVs clocked 390,399 units in the first half (1H) of the calendar year 2022. This represents a 333% growth over the 90,102 vehicles sold in the corresponding period last year. In all, 240,662 electric two-wheelers were sold in 1H 2022, a 656% growth over the 31,823 units sold during the same period last year.
Electric two-wheeler sales could touch 22.02 million in 2031 if battery costs reduce by 8% CAGR, vehicle power increases by 20% by 2024, and demand incentives continue until 2031, according to Niti Aayog and Technology Information Forecasting and Assessment Council.