Kinetic Engineering to build electric vehicles

Kinetic Engineering spun off its two wheelers business to Mahindra &Mahindra. Ever since, Kinetic Engineering (which holds a sizeable stake in Mahindra TwoWheelers) has been supplying parts to Mahindra TwoWheelers. Auto components are now the bread and butter business of Pune-based Kinetic Engineering, what with the firm supplying parts to a long list of automakers in India. For instance, gearboxes of the Tata Nano, 407 LCV, and the Piaggio Ape four wheelers are supplied by Kinetic. 

However, the Nano is a slow seller and Mahindra TwoWheelers isn't doing too well either. The resulting slowdown in orders has meant that Kinetic is now looking at other areas to spur future growth. A potential opportunity happens to be the NEMMP 2020. The National Electric Mobility Mission Plan 2020 (NEMMP) is a brain child of the Indian government. The plan proposes to encourage research, development and production of electric and hybrid vehicles. 

A sizable investment outlay by the Indian government is a part of the plan. Of the 22,500 crore rupees earmarked for the NEMMP 2020, the Indian government will contribute about 13,000-14,000 crore rupees while the manufacturers are expected to contribute the rest of the amount. The Indian government hopes to see a million electric vehicles on Indian roads by 2020. Spurred by the big investment, many automakers in India are betting big on the electric and hybrid vehicle sectors.

While Mahindra, through its Reva Electric acquisition, is building a slew of electric vehicles spanning across segments, Toyota is evincing interest in hybrid cars for India. Based on a report carried by LiveMint, Kinetic Engineering is all set to join the electric vehicle fray shortly. A formal announcement regarding Kinetic's foray into EVs is expected to happen in 3-4 months from now. Kinetic is also expected to announce a tie up with another company for its electric vehicle foray. Kinetic Engineering, through its Vice Chair-Person, Ms. Sulajja Firodia Motwani, has made it clear that the EV venture will not include two wheelers.

Rather, the company's EV venture will focus on niche segments such as fork lifts, golf carts and specialist people movers for the tourism sector. In a nutshell, Kinetic wants to target applications requiring low battery range. The idea, it seems, is to work within the existing limitations of battery technologies to produce cost effective electric vehicles targeting niche segments. More details of Kinetic's EV venture are expected to be revealed in the coming weeks. 

Image courtesy MadeInChina