Kinetic Engineering Limited (KEL), an auto component manufacturer, has announced the formation of a subsidiary company that will focus on the growing electric vehicle (EV) market. The new company will be a subsidiary of Kinetic Engineering Limited, in which Kinetic Engineering Limited will own more than 51% stake. The company will have an authorised capital of up to INR 25 crore.
The decision was made in the board meeting of Kinetic Engineering Limited, where the company laid a clear focus on the growing EV sector, noted Ajinkya Firodia, Managing Director of KEL. He said, “Being an innovation-led company KEL's focus has always been on addressing automotive megatrends and in line with that strategy KEL has decided to form this subsidiary so that dedicated resources and funds can be deployed to evolve the correct strategy for a long term sustainable and expansive future.”
Notably, the electric 2W sales in the past one year have crossed 356,000 units, and that of electric 3W has crossed 223,000 units. The Government of India aims to have EV sales accounting for 30% of private cars, 70% for commercial vehicles and 80% for two- and three-wheelers by 2030.
KEL is developing several products such as axles for electric 3-wheelers, gearboxes for electric 2-wheelers and 3-wheelers, frames for electric 2-wheelers, and chassis for electric 3-wheelers. The new company will now focus on the entire EV portfolio, including components and assemblies, to clearly focus and quickly scale up to exploit the opportunities.