Buoyed by the demand for last-mile delivery vehicles and electric two-wheelers, Pune-Based electric vehicles manufacturer Kinetic Green Energy is aiming to touch INR 200 crore in revenues in the on-going fiscal, a top official told Mobility Outlook.
Kinetic Green Energy and Power Solutions, which is part of the INR 7,000 crore Kinetic Group, has launched electric two-wheelers in the last mile delivery segment, eyeing opportunities arising from the e-commerce sector, food delivery and need for personal mobility due to the fear of COVID-19.
In an exclusive interaction with Mobility Outlook, Sulajja Firodia Motwani, CEO and Co-Founder, Kinetic Green Energy and Power Solutions said a fairly large contribution of the company’s planned turnover for FY22 would come from electric three-wheelers in last mile and two-wheelers as well.
Where Will The Growth Come From?
Kinetic Green has three elements to its business – electric three-wheelers, electric two-wheelers and golf carts.
The company is projecting 75% of revenue, which is INR 150 crore, to come from three-wheelers. Of that, the company expects the Safar Jumbo to contribute INR 100 crore alone. The two-wheeler segment will bring in the remaining INR 50 crore, Motwani explained.
The company recently launched the Safar Jumbo e3W with gross vehicle weight of over one tonne. The vehicle has a specially developed cargo box, meant for e-commerce deliveries, with close to 150 square feet cubic capacity and a payload of 500 kg. The focus this year will be on ramping up this new delivery vehicle, said Motwani, confirming there will be no other new model planned in the 3W range.
The company had pushed back the launch of electric golf carts last year. Motwani confirmed they would be launched this year, but said the launch of electric golf carts will not have a direct impact on revenues, but it is part of a key strategic initiative this year.
Key Trends in Electric Vehicle Segment
Three major trends have emerged due to the pandemic, and Motwani believes they are here to stay and propel the electric vehicle growth story.
Rise of E-commerce Deliveries:Due to COVID-19, there has been a boom in the e-commerce business, with increased online deliveries of groceries, vegetables, milk and food. “Deliveries will continue to happen and there will be a deep change in the segment. More and More institutions will start deliveries of grocery, FMCG, gas distribution and waste management. This is going to come in a big way,” she said.
Falling Battery Prices and Rising Fuel Prices:The cost of lithium-ion battery is going down every year. From the current level of $180 for a full battery pack, battery prices will go down to $140-$150 in the next couple of years. At the same time, petrol price has touched INR 100/litre. People are now seriously considering buying an electric two-wheeler for its low cost of operations. Motwani said, “After a couple of years, there will be no difference in electric two-wheelers and petrol scooter.”
Increasing Awareness and Greater Acceptance:Customers’ approach towards electric vehicles is changing. Motwani said the company has been doing surveys to understand the customer perception of electric vehicles. Comparing the results of a survey done five years ago versus today, she revealed that about 75% of customers are willing to purchase electric vehicles citing the low cost of ownership and overall impact on the environment.
INR 10,000 Crore In 10 Years
Over the next decade, Kinetic Green aims to grow its business to a size of INR 10,000 crore. To fuel this growth, the company is planning to raise $35-40 million from private equity investors.
Motwani said, “We are extremely bullish about this decade. This decade is the defining decade for EV proliferation. I expect the battery prices to keep coming down, and a lot more charging infrastructure and battery swapping stations are also coming up, which will enable the penetration of electric vehicles.”
She further added that the company wants to be a key player in the electric three-wheeler business. With its completely ‘Made in India’ product portfolio, Kinetic Green is aiming to provide the most reliable and cost-effective solutions to the customers.
“On electric two-wheelers, we have just made a beginning, but we intend to work on this segment very seriously and bring a larger portfolio in the coming years,” Motwani said.
Meanwhile, the company has formed a joint venture with Tonino Lamborghini in India for the design and manufacture of premium segment golf carts and other electric off-road vehicles. The company expects this segment to add revenues from global markets.
This year, the company also plans to open a new facility for golf carts and battery swapping projects in Andhra Pradesh.
Hit hard by the COVID-19 outbreak, the company saw a dip of 30% in its revenue last year. “We did see a 30% dip in top line last year, as the business suffered till October due to the national lockdown. Our dealerships had to be closed. But we have bounced back, and have done 80% business in the last few months that we were doing in the last five years,” Motwani added.