With the implementation of a subscription plan, Kinetic Green has lowered the price of the Zulu electric scooter from Rs 94,990 on the market to Rs 69,000. This is happening in the context of the government’s FAME 2 scheme, which is expected to be phased out by March 2024, and the uncertainty surrounding the government subsidy program’s future.

The founder and CEO of Kinetic Green, Sulajja Firodia Motwani, said the company is ready for the day when the government decides to further reduce or maybe eliminate the subsidy regime, which will lead to a 25 percent growth in electric two-wheelers relative to their ICE counterparts.

When compared to other subscription models that necessitate B2B fleets to visit dealerships or battery-swapping stations, Motwani called hers a “financial innovation”.

The only distinction is that the customer will have to pay for the scooter as he uses it; otherwise, the battery would be given to him together with the scooter. The creator of Kinetic added that monthly subscription costs ranged from Rs 600 to Rs 800. She added that the cost of an EV will be 31% less than that of an ICE car, and its running costs will be 74% less.

With a 2.2 watt NMC battery that can run the Kinetic Zulu for 104 kilometers at a top speed of 60 kmph, it is currently available.

In the first half of 2024, Kinetic plans to sell 40,000 Zulus at its 300 dealerships where the product is available for delivery. The company is also assessing the possibility of producing an electric version of Luna for commercial use, according to Motwani.

Additionally, Kinetic is thinking of implementing an aggressive network growth plan that would see the opening of 300 new dealerships annually, with the goal of opening 1200 dealerships by 2025 and increasing the number of three-wheeler retail contact points from 200 to 400.

According to Motwani, growth in Tier 1 cities will be skewed towards the latter, which will account for 60% of the growth, in comparison to Tier 2 and Tier 3 cities. “Founder and CEO of Kinetic Sullaja Motwani stated, ‘It is a big number for the Tier 2 and Tier 3 markets which will continue to drive our growth. Rather than metros like Pune, Bangalore, or Mumbai where savings of Rs 3,000-4000 dont matter much.”

Kinetic Green intends to open its second production facility in Supa, near Ahmednagar, with a capacity of one million units and a total expenditure of Rs 500 crore, seeing a significant increase in two- and three-wheelers, where Kinetic has a strong foothold.