Kinetic Engineering, a Pune-based company that develops components for electric 2- and 3-wheelers, has created a new subsidiary company to explore new opportunities in the assembly and electric vehicle market. Kinetic Engineering holds a 51% share in the new subsidiary. The initial capital expenditure for the subsidiary is Rs 25 crore.
Kinetic Engineering currently develops components like axles for three-wheeler electric vehicles, gearboxes to drive two- and three-wheelers, frames for two-wheelers, and chassis for three-wheeler electric vehicles. According to the company, there are tremendous opportunities for growth in the electric vehicle market and it aims to quickly establish a strong focus on exploiting these emerging opportunities.
Ajinkya Firodia MD, Kinetic Engineering stated, “The sales of electric two-wheelers in the last year exceeded 3,56,000 units, and that for electric three-wheeler 2,23,000. All major players worldwide are focused on electrification. This rapid change from IC vehicles into EVs requires a strong focus. The new subsidiary will be part of the growth story for electric mobility.
“As a company with 50 years of legacy in automobile manufacturing and marketing, Kinetic must explore all the avenues of the growth potential of the segment. Being an innovation-led company KEL’s focus has always been on addressing automotive megatrends. In line with that strategy it has decided to form this subsidiary so that dedicated resources and funds can be deployed to evolve correct strategies for a long-term sustainable and expansive future,” added Firodia.
Recently, the company received an order from a top three-wheeler manufacturer for chassis and other parts to be developed for electric moped manufacturers.