Kinetic Green, Tonino Lamborghini Join Hands To Enter e-Carts Business; Eye $1 Billion Turnover In 10 Years
Motwani noted that the JV intends to raise and invest around $20 million through various routes over the next 12 months.
Kinetic Green on Thursday joined hands with Italy's Tonino Lamborghini to roll out golf and lifestyle carts for global markets with expectations to corner a $1 billion turnover over the next decade.
The Pune-based electric vehicle maker will hold 70% stake in the joint venture firm -- Kinetic Green Tonino Lamborghini, with the Italian firm holding the rest of the 30% stake.
In an interaction with PTI here, Kinetic Green Founder and CEO Sulajja Firodia Motwani said the JV is eyeing 10% market share of the electric cart business globally over the next ten years.
"It is a $5 billion market growing at 8-9% yearly, so over the next ten years it will become a $10 billion market,' she said.
The JV has set its sights on reaching $300 million topline in the next five years via entry across 25-30 geographies, including the US, Europe and Asia, Motwani said.
"Over the next ten years, we would like to see it (e-carts biz) turn into a 10 billion dollar business globally, and we could claim a 10 per cent market share,' she added.
Motwani noted that the JV intends to raise and invest around $20 million through various routes over the next 12 months.
"We have already invested between $2 million and $3 million in the JV. We further plan to invest another $2 million over the next 12 months," she stated.
In addition, efforts are in to tap banking facilities and term loans for about $5 million, she said.
Besides, there are various family offices that want to invest in the business, she said, adding that it could be in the range of $10 million.
The global market for electric carts is around 5 lakh units per annum, with the US being the biggest market, followed by Europe and Asia.
Electric carts are used in golf courses, resorts, airports, townships, etc.
Usually, electric carts come with a driving range of 80-150 km and are priced between $10,000 and $14,000 per unit.
In India, around 1,500 units are sold yearly.
"Our JV will leverage the long legacy of the Kinetic Group in automotive engineering and the experience of our partner, Tonino Lamborghini's global experience in redefining design and lifestyle experiences, and to top it all, marketing our products globally," Motwani said.
Kinetic Green's aim is to build a $1 billion EV business by 2030, and this JV will play a key part in the company's global ambitions, she added.
The JV will produce electric carts at Kinetic Green's Pune-based production facility.
KGTL plans to have a production capacity of 4,000 units for the first two years of operations and later scale it up depending upon the market demand, Motwani said.
"We are also keeping the option open to set up local assembly plants depending upon the customs duty structures in different countries," she added.
The company has all the options available, including CKD (Completely Knocked Down), CBU (Completely Built Unit) or component export for different geographies, Motwani said.
"This is more than an industrial joint venture - it is a bridge between two entrepreneurial cultures," Ferruccio Lamborghini, Vice President, Tonino Lamborghini SpA, stated.
The JV will roll out the electric carts in two trims - Genesis and Prestige - with prices ranging between $10,000 and $18,000 per unit.
