Kinetic Green to get into battery making as part of its INR 10,000 cr co by '29 strategy

Kinetic Green's Strategy for EV Cost Containment

Transition Away from Chinese Partnership

Kinetic Green, a Pune-based EV manufacturer, has shifted focus away from its earlier collaboration with the Chinese company Aima. This move is aimed at containing costs, specifically targeting the most expensive part of an electric vehicle (EV).

Ambitious Growth Targets

Betting on the surge of the Indian EV market, Kinetic Green has set formidable goals. By 2029, they aim to achieve annual sales of one million EVs, eyeing a turnover of INR 10,000 crores. This target vastly exceeds their cumulative sales since their inception in 2016, which primarily focused on 3-wheelers before expanding to include 2-wheelers in 2021.

Projected Industry Shifts

Sulajja Firodia Motwani, Founder & CEO, anticipates a significant rise in the EV market share within the two-wheeler segment, projecting a potential increase from the current 6% to 65-70% by 2029.

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Strategic Investment and Expansion Plans

Kinetic Green plans a significant capital expenditure of INR 500 crores over the next few years. This allocation includes INR 150 crores for a new plant, INR 250 crores for research, development, and technology, with the remaining INR 100 crores designated for joint ventures and strategic investments.

Crucial Role of Battery Manufacturing

Recognizing the pivotal role of batteries as the costliest component in EVs, Kinetic Green plans to invest in a battery manufacturing facility. This facility aims to cater to specific product lines, particularly the e-luna and LS (3-wheeler), where optimizing battery value is critical.

Reviving Luna's Legacy

Kinetic Green plans to reintroduce the Luna in January 2024, targeting sales of 100,000 units annually. The e-Luna, a revamped version of the iconic low-cost mobility vehicle, has undergone pilot testing in select Maharashtra markets.

Independent Growth and Capabilities

Kinetic Green's shift towards self-reliance involves building internal capabilities rather than heavily relying on partnerships, like the one with Aima Technology Group. Despite an earlier Memorandum of Understanding (MoU), no concrete products emerged from this collaboration.

Financial Outlook and Product Projections

Despite market disruptions and reduced incentives, Kinetic Green anticipates revenues between INR 400 crores and 500 crores for the current financial year. The newly introduced Xulu model is expected to lead sales initially, paving the way for the e-Luna's mass-market adoption.

Conclusion

Kinetic Green's strategic maneuvers reflect a clear vision to leverage internal capabilities, pursue ambitious growth targets, and optimize key components like battery technology, reflecting their commitment to leading India's burgeoning EV industry.