Pune based Kinetic Engineering (KEL) has launched a new subsidiary company targeting electric vehicles and assembly market.
The new subsidiary is set up with an initial capital outlay of Rs 25 crore with 51 percent stake held by Kinetic Engineering.
At present, Kinetic Engineering is developing several components such as axles for electric three-wheelers; gearboxes for two- and three-wheelers; frames for electric two-wheelers and chassis for electric three-wheelers.
The company says it sees tremendous growth opportunities in the electric vehicle space and aims to establish a strong focus on exploiting the emerging opportunities quickly.
Ajinkya Firodia, MD, Kinetic Engineering said, “The electric two-wheeler sales in the past one year crossed 3,56,000 units and that of electric three-wheeler 2,23,000 units. Globally also, all major players focus on electrification. Such rapid pace of change from IC vehicles to EVs needs a very clear and strong focus and the new subsidiary will be part of the growth story of 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.
The company has recently finalized orders for the development of chassis and other parts for electric moped manufacturers and has bagged an order from a leading three-wheeler manufacturer.