Kinetic’s Big Move into Electric Vehicles
A famous Indian company called Kinetic is making a big change to start building electric vehicles! NDTV Auto told that Kinetic Engineering Limited, a company that has made vehicle parts for many years, is letting its new company use the Kinetic name to make electric cars and scooters.
What’s Happening with Kinetic?
Kinetic Engineering Limited (KEL) created a new company called Kinetic Watts and Volts Ltd. (KWV) on September 27, 2022. Now, KEL is letting KWV use the Kinetic name for three years to make electric vehicles. This is called a “brand licensing agreement”.
The boss of Kinetic, Mr. Ajinkya Firodia, said the Kinetic name has stood for trust and good ideas for more than 50 years. People know and trust this name, so using it for new electric vehicles will help customers feel good about buying them.
How Much Money Is Going Into This?
Kinetic Engineering is putting a lot of money into this new electric vehicle company – Rs. 42.83 crore already! That’s more than 4 billion pennies! They will add another Rs. 29 crore soon. When they finish, they will have put in Rs. 71.83 crore total.
This means Kinetic Engineering will own 80% of the new company, which is like having 8 slices of a 10-slice pizza. They are the main owners and get to make most of the big decisions.
| Money Details | Amount | What It Means |
|---|---|---|
| Money already put in | Rs. 42.83 crore | This is like filling 4,283 piggy banks with 1 lakh rupees each |
| Money coming soon | Rs. 29 crore | This is enough to buy thousands of electric scooters |
| Total investment | Rs. 71.83 crore | This shows they really believe electric vehicles are important |
| Ownership | 80% | Like owning most of the pieces in a game |
What Makes the Kinetic Brand Special?
The Kinetic name is very important because people have trusted it for more than 50 years. Kinetic used to be famous for making regular scooters and motorcycles. Now they want to use that good name to help sell electric vehicles too.
Even though they’re moving into electric vehicles, Kinetic Engineering still makes important parts for vehicles like gearboxes, axles, and chassis. These are like the bones and muscles that make vehicles work properly. They’ve also started making batteries through another new company called “Range X.”
Electric Vehicles in India – Growing Fast!
The electric vehicle market in India is already very big and getting bigger every year! Right now, it’s worth about USD 14.18 billion (that’s more money than most people can imagine). By 2030, experts think it will grow to USD 101.40 billion!
This market is growing super fast – about 38.8% bigger each year. India already has more than 56 lakh (5.6 million) electric vehicles on its roads. Right now, only about 2.5% of all cars sold in India are electric – that means only about 2 or 3 out of every 100 cars.
- Electric vehicles use batteries instead of gas – they’re like big toys that you can charge like your tablet
- They don’t make smoke or pollution – this helps keep the air cleaner
- The Indian government wants more electric vehicles – they hope 30% of cars (3 out of 10) will be electric by 2030
- Electric vehicles can save money – charging with electricity costs less than filling up with gas
- They’re quieter than regular cars – they make almost no noise when they run
Why This News Matters
This agreement between the two Kinetic companies is really important because it shows how India is changing from gas-powered vehicles to electric ones. Kinetic has been making vehicles for 50 years, and now they’re changing with the times.
After three years, the companies will look at how things are going and decide if they want to keep using the Kinetic name for electric vehicles. This gives them time to see if people like their electric vehicles and if they should make more.
This news shows that even old, trusted companies are getting excited about electric vehicles! As more companies like Kinetic join in, we’ll see more electric cars and scooters on India’s roads, which means cleaner air for everyone.
