Kinetic Engineering Invests Rs 57 Crore to Accelerate EV Expansion and Driveline Exports

Kinetic Engineering Limited (KEL) has announced an additional investment of approximately Rs 57 crore to bolster its manufacturing capabilities and accelerate its electric vehicle (EV) business. The capital infusion, derived from the final tranche of warrant conversions issued to promoters in March 2025, marks a significant step in the company's long-term growth strategy. Of the total amount, Rs 40 crore is earmarked for the expansion of its electric two-wheeler segment, while Rs 17 crore will be directed toward capital expenditure to support newly secured driveline export contracts for European and Mexican markets, valued at roughly Rs 500 crore over seven years.

Kinetic is leveraging the investment to scale its electric mobility subsidiary, Kinetic Watts and Volts, focusing on product development and the expansion of its retail distribution network. The company has already signed letters of intent with over 150 dealers across India, with more than 60 locations currently operational and equipped with 3S facilities for sales, service, and spares. This infrastructure is intended to support the market penetration of the Kinetic DX and DX+ electric scooters, which the company reports are gaining traction.

These scooters feature an IDC range of up to 132 km and are powered by 3.1 kWh LFP battery technology. The company aims to leverage the projected growth in India's electric two-wheeler market, which is expected to expand from 1.8 million units to 7 million units by FY 2030, to secure a position among the top 10 EV brands in the country.

Beyond its EV ambitions, Kinetic Engineering is focused on improving the profitability of its core auto-components business. Ajinkya Firodia, Vice Chairman and Managing Director of Kinetic Engineering, noted that the company is targeting EBITDA margins of approximately 12 per cent, supported by a healthy pipeline of new orders. The company's commitment to this growth trajectory is reflected in the increased promoter shareholding, which has risen from 50 per cent to 69.27 per cent over the past four years.

As Kinetic continues to scale its operations, it remains focused on integrating its engineering heritage with new electric mobility technologies. The company's next phase of development will involve further investments in capacity and technology to solidify its presence in the evolving Indian electric mobility landscape.