Industry sought extension of subsidies for e-2 wheelers, but unlikely: Kinetic Green’s Motwani

Sulajja Firodia Motwani, Founder and CEO, Kinetic Green said the industry has sought extension of subsidies for electric two- and three-wheelers, which are coming to an end by March 2026, by three years, however it is unlikely to happen.

“Under the PM E-Drive scheme, the current available subsidy is ₹5,000 per kilowatt hour for e-two- and three-wheelers. This will end in March 2026,” she said at a media interaction in Chennai.

“The industry had proposed to the Union government that the subsidies should be extended by 3-4 years given that the penetration is 6-8% and 20-25% would be the critical mass. Demand is what would drive investment, mass production and development of charging infrastructure. Since the extension is unlikely, the industry has to find other ways to generate demand,” Ms. Motwani said.

She also said the reduction of GST rates on internal combustion engine (ICE) vehicles from 28% to 18%, will not impact the electric vehicle segment.

“Today, people are looking at both the initial price and the savings. Electric vehicle prices are coming down. The electric vehicle prices are close to ICE prices. Today, you have good options in the ₹90-₹1 lakh range. Battery prices have come down to ₹9,000 per kilowatt hour for two wheeler from ₹16,000 per kilowatt hour five years ago and will come down further. There is 5% GST on electric vehicles and most States have waived off road tax which is an additional saving. Also now governments are coming out with mandatory requirements for fleets to be electrified,” Ms. Motwani said.

Kinetic Green on Thursday launched its electric two-wheeler Luna Prime.

“The company aims at reaching $1 billion (₹8,000 crore) revenue in the next 5-6 years from the current level of ₹500 crore,” Ms. Motwani said.

The company has forged a joint venture with Tonino Lamborghini of Italy for Electric Golf Carts and Lifestyle Carts.

“We will export the golf carts to the U.S. from January. Although a 50% tariff is now in place, the U.S. has imposed a 200% anti-dumping duty on golf carts from China, which still gives it an advantage. Hopefully, there would be a solution to the 50% tariff,” Ms. Motwani said.

The company has raised $25 million from U.K.-based private equity fund Greater Pacific Capital. “We will be looking to raise $30-50 million in the financial year 2026-2027,” Ms. Motwani said.