Kinetic Green prepares for post FAME subsidy regime with new Zulu EV with subscription model

Sulajja Firodia Motwani, Founder and CEO, Kinetic Green stated that the company is preparing for the time when the government decides to further taper down or even eliminate the subsidy regime, which will result in a 25 percent increase in electric two-wheelers when compared to the ICE variants.

By Amit Vijay M calendar 11 Dec 2023 Views icon5973 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

Kinetic Green today launched a Zulu electric scooter, with a subscription model, lowering its acquisition price to Rs 69,000 from Rs 94,990 on the street. This is against the backdrop of the likely phasing out of the government's FAME 2 scheme by March 2024 and uncertainty about the continuation of the government subsidy programme. 

Sulajja Firodia Motwani, Founder and CEO, Kinetic Green stated that the company is preparing for the time when the government decides to further taper down or even eliminate the subsidy regime, which will result in a 25 percent increase in electric two-wheelers when compared to the ICE variants.

Motwani described her subscription model as a "financial innovation" when compared to existing subscription models that require B2B fleets to visit dealerships or battery-swapping stations.

The battery will be provided to the consumer along with the scooter, with the only difference being that the consumer will pay as he uses the scooter. The Kinetic founder also stated that subscription prices ranging from Rs 600- Rs 800 per month. She also explained that compared to an ICE vehicle, the cost of an EV will be 31% cheaper and running cost will be 74% cheaper.  

The Kinetic Zulu is now available with a 2.2kw NMC battery with a range of 104 km and a top speed of 60 kmph. 

Kinetic, which is also evaluating commercial production of its electric version of Luna in the first half of 2024,  is targeting selling 40,000 Zulus at its 300 dealerships where the product is ready for delivery, according to Motwani. 

Kinetic is also considering an aggressive network development strategy that would add 300 new dealerships per year, with aspirations to open 1200 dealerships by 2025, and to expand its three-wheeler retail contact points from 200 to 400. 

Motwani said that with regards to expansion in Tier 1 versus the Tier 2 and 3 cities, it will be skewed towards the latter, which will account for 60% growth.  "Rather than metros like Pune, Bangalore, or Mumbai where savings of Rs 3,000-4000 dont matter much it is a big number for the Tier 2 and Tier 3 markets which will continue to drive our growth" said Sullaja Motwani, the founder and CEO of Kinetic.

Seeing the significant growth in two-wheelers and three-wheelers, where Kinetic has a strong presence, Kinetic Green plans to open its second manufacturing facility in Supa, near Ahmednagar, with a capacity of 1 million units and a total investment of Rs 500 crore.

JV with Tonino Lamborghini

Kinetic is also hoping to cash in on the golf cart business through its joint venture with Tonino Lamborghini, in which the Kinetic firm owns 75% and the Lamborghini family owns the other 25%. 

In 2021, Italian automotive brand Iso, from the house of Tonino Lamborghini, and India’s Kinetic Green, the EV venture of the Pune-based Kinetic Group, launched a new range of electric golf carts.  The Iso Divo Golf Carts, which come in two models - Strada and Golf - are developed in Italy and built in India, with a global vision for exports. Their commercial entry is scheduled for early 2025.

 

 

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