Kinetic Engineering on Monday announced its re-entry into the two-wheeler space and said it aims to invest around ₹177 crore over the next 18 months to scale up sales network and ramp up production.
The Pune-based firm, which used to produce and sell the iconic scooter Kinetic DX from 1984 till 1998, aspires to be among the leaders in the electric two-wheeler space over the next three years.
The company on Monday launched Kinetic DX scooter in an electric avatar with an estimated range of 116 km on a single charge.
In an interaction with PTI, Kinetic Engineering Vice Chairman and Managing Director Ajinkya Firodia said the company aims to scale up the production and sales network in a phased manner.
"We aim to touch 1.5 lakh unit sales mark in the next 3-4 years, and to sell that number we would require around 300 dealerships," Firodia said.
The company plans to produce around 40,000 units by August 2026 and then gradually scale up production, he added.
"The company aims to achieve a 6-8% market share in the next three years, targeting the top three players in the segment," Firodia said.
He noted that the top five or six manufacturers are now dominating the domestic electric two-wheeler segment with a market share of around 90%.
On future investments, Firodia noted that the company has committed to invest ₹177 crore in the business over the next three years.
When asked about the sales network, he said that the company currently has appointed 20 dealers and plans to expand the number to 160 in the first year.
It would be scaled up to 300 dealerships over the next three years, with the western region being the first focus area, followed by northern, eastern and southern parts of the country, Firodia said.
He emphasised the importance of having a reliable brand with good service is crucial for long-term success in the Indian market.
The company also plans to later export the electric scooter to various markets globally, he added.
Kinetic Engineering Ltd (KEL) is entering the electric space through a wholly-owned subsidiary -- Kinetic Watts and Volts Ltd.
It was established in September 2022.
Kinetic Watts and Volts has already been capitalised with ₹72 crore through KEL and the promoters.
The promoters have recently pledged an additional ₹177 crore in KEL, with a significant portion dedicated to scaling up the DX platform.
The Kinetic DX is priced at ₹1,11,499 and the Kinetic DX+ is priced at ₹1,17,499 (ex-showroom, Pune).
The electric scooter, which comes with various connected features, can go up to 90 km/hr.
"Reviving this icon was about more than just launching a scooter, it was about bringing back the reliability, innovation, and robustness that defined Kinetic for decades, giving it a future-ready soul," Firodia said.
He noted that the company has been able to design a motor that functions without rare earth magnets, addressing current supply chain issues.
