Kinetic Engineering has announced an additional investment of approximately Rs. 570 million (US$ 5.9 million) across its automotive components and electric two-wheeler businesses to finance manufacturing capital expenditure and expand its electric vehicle operations.

The investment will be made through the final tranche of the conversion of 4.45 million warrants issued to the promoters in March 2025. Following the transaction, promoter shareholding in the company will increase from 50% to 69.3% over a four-year period.

Of the total investment, approximately Rs. 170 million will be allocated towards capital expenditure at Kinetic Engineering's manufacturing base to support newly acquired driveline export contracts. The new business involves driveline components for export to Europe and Mexico, with the orders having a cumulative value of approximately Rs. 5 billion over a seven-year delivery schedule.

The remaining Rs. 400 million will be invested in Kinetic Watts and Volts (KWV), the company's electric mobility subsidiary. The funds will support product development, supply-chain expansion and the roll-out of the retail network for its electric two-wheeler portfolio.

KWV recently introduced electric versions of the Kinetic DX and DX+ scooters. The Kinetic DX and DX+ offer up to 132km of IDC range and are equipped with a 3.1kWh LFP battery.

To expand its retail distribution network, Kinetic has signed letters of intent with more than 150 dealers across India. More than 60 of these outlets are already operational, with integrated sales, service and spares facilities.

The company is targeting a top-10 position in India's electric two-wheeler market. It is also targeting EBITDA margins of around 12%, with the automotive components business supported by a pipeline of new orders.

Ajinkya Firodia, Vice Chairman and Managing Director of Kinetic Engineering, said, "Kinetic Engineering is entering a new phase of growth, with activity across both our automotive components and electric mobility businesses. Our auto-components business has a pipeline of new orders, which will support growth and help us work towards our target of improving EBITDA margins to around 12%. At the same time, the response to our Kinetic DX electric scooter is supporting plans to expand our presence across markets. With continued investments in capacity, technology and our retail network, we are focused on expanding both businesses and developing Kinetic's presence in India's electric mobility segment."

The company has linked its electric two-wheeler expansion to the projected growth in electric vehicle adoption, with EV penetration expected to reach 26% by FY 2030.

Kinetic Engineering said that its promoter shareholding had increased from 50% to 69.3% over the previous four years.