India's Kinetic Engineering Invests INR 570 Million to Expand Drivetrain and Electric Vehicle Businesses

en.Wedoany.com Reported - India's Kinetic Engineering has finalized a new investment of approximately INR 570 million, with funds directed toward its drivetrain business and electric two-wheeler business. Of this, approximately INR 170 million will be used for capital expenditure on the new drivetrain business, while approximately INR 400 million will be injected into subsidiary Kinetic Watts & Volts to expand the electric two-wheeler business. The funds come from the final tranche of conversion of 4.451 million warrants issued by the company to promoters in March 2025.

The drivetrain portion corresponds to the company's newly secured export orders from Europe and Mexico, with a cumulative order value of approximately INR 5 billion over 7 years. The new capital expenditure will be used to configure related production lines, equipment, and manufacturing capabilities, serving the gears, shafts, transmission assemblies, and drive systems businesses. Kinetic Engineering's existing manufacturing system covers forgings, gears, shafts, gearboxes, rigid axles for electric vehicles, and chassis, and can supply customers in passenger vehicles, commercial vehicles, off-road vehicles, and electric vehicles.

The remaining approximately INR 400 million will be used by Kinetic Watts & Volts to expand its electric two-wheeler business. The company has relaunched the Kinetic DX electric scooter and has currently signed letters of intent with more than 150 dealers in India, of which more than 60 are already operational, covering sales, after-sales, and spare parts services. The DX and DX+ models are equipped with a 3.1 kWh lithium iron phosphate battery, with an IDC range of up to approximately 132 kilometers.

Kinetic Engineering has previously continued to invest in the manufacturing of electric vehicle components, including axles, chassis, and drivetrain parts, and has restored and upgraded its painting and cathodic electrodeposition production facilities to provide complete body components to electric vehicle companies. Its electric vehicle subsidiary also has research and development and manufacturing capabilities for core components such as motors, controllers, and battery packs.

The company's previously announced long-term capital plan totals approximately INR 1.77 billion, to be used in phases for manufacturing capabilities, working capital, and the electric vehicle business. This round of INR 570 million investment continues this pace of capital deployment and directly corresponds to the drivetrain orders already secured and the expansion of electric two-wheeler channels.