Autoline Industries Ltd. (Autoline), a leading auto components manufacturer and Kinetic Green Energy and Power Solutions Limited, Pune ("Kinetic"), leading Electric Vehicle manufacturer in India have signed an Agreement for joint development and nationwide marketing of electricbicycles ("E-Cycle").
Under the Agreement, Autoline will undertake the development and manufacturing of the E-cycle critical assemblies. Autoline Industries, in association with Kinetic, has successfully developed the first 2 models of E-Cycles with R&D effort over the last 18 months. Kinetic, which is already a well-established player in not just the traditional automotive market but also in Electric vehicles, will aggressively market the range nationally, through its PAN India dealership network. These e-cycles will be available for the customers in the Indian market by November, 2019 with the help of Kinetic's strong pan India dealership network, the aim is to promote these E-cycles across India.
Autoline will utilise its own capabilities and existing capacity to manufacture the E-Cycles. Hence, no fresh investment is required for this product launch at this stage. At present, Autoline has reserved manufacturing capacity to assemble 9000 to 10500 E-Cycles per year which can be expanded to 100000 E-cycles per year with minimal capex. Initially, Kinetic and Autoline will introduce E-Cycles in two variants and then will gradually introduce more models as per market demand.
The E-cycles will be built at Pune plant and are built on the "Make in India" principal. They offer a top speed of 25 kmph and can run 25 to 35 km on a single charge. Vehicles are equipped with Advanced fast charging Lithium ion batteries and a full charge takes only 3 to 4 hours. The battery is detachable and weighs only 2.45 kg, enabling it to be carried into the home for charging on a simple domestic socket, just like a mobile phone. The vehicle works on an electric-assist principal, thereby the riders can either pedal the bicycle for exercise or to save battery or they can use the motor to have a 100% effort-free ride using the electric powertrain. The vehicles are easy to use and are suitable for everyone who can ride a bicycle. The E-cycle can bring transformative benefits for various customers like studentsin urban or rural areas, delivery boys, small businessesfor various commuting or short distance delivery needs.
Within the Automotive space, Electric vehicles (EV) segment is witnessing rapid evolution due to their intrinsic benefits of zero pollution and low running cost, and this is further accelerated due to Government support, as well as increasing awareness among the consumers of the adverse impact on health of ever increasing pollution. Indian Government has set ambitious targets to transform India's automotive sector with accelerated electrification especially with a focus on two-wheelers, three-wheelers and public transport, to bring the benefits of green mobility to the masses.
Commenting on the announcement, Mr. Shivaji Akhade (Promoter and Managing Director, Autoline Industries) said; "This is a part of our Company's strategy of exploring various business opportunities in the challenging business environment to prepare ourselves for the future. At Autoline, we are innovative and we utilise the latest technology. The E-Cycle initiative also forms a part of our company's humble contribution towards Green-Earth initiatives. We feel that E-Cycles have the potential to make a massive impact on the micro mobility market as well as to help improve fitness levels of our health conscious millennials!"
Commenting on the announcement, Mr. Arun Firodia (Chairman, Kinetic Group) said, "Kinetic's vision is to bring green mobility to millions and bring wide range of innovative yet affordable EVs to the Indian mass market. We strongly believe that in a developing nation such as ourselves, the social impact of a new technology can be disruptive only if it is brought within the reach of the common man, just like impact made by Kinetic Luna or Kinetic Honda. Only then, its benefits can reach the society at large. Currently, the Government's FAME II scheme does not have special support package for E-cycles but we will request them to extend support to this segment.
In future, Kinetic and Autoline would be developing more models of E-cycles, at various price and performance points; and both the partners plan to promote the E-cycle range aggressively to promote green mobility to masses across India and in the international markets.
Shares of AUTOLINE INDUSTRIES LTD. was last trading in BSE at Rs.26 as compared to the previous close of Rs. 25.65. The total number of shares traded during the day was 1367 in over 16 trades.
The stock hit an intraday high of Rs. 26.5 and intraday low of 25.5. The net turnover during the day was Rs. 35456.