Kinetic Green’s Founder and CEO, Sulajja Firodia Motwani, recently revealed that while the electric vehicle (EV) industry has pushed for a three-year extension of subsidies for electric two- and three-wheelers, which are set to expire in March 2026, such an extension seems unlikely.
During a media interaction in Chennai, Ms. Motwani explained that the current subsidy, provided under the PM E-Drive scheme, offers ₹5,000 per kilowatt-hour for e-two- and three-wheelers. This crucial support is slated to end in March 2026.
She highlighted the industry’s proposal to the Union government, arguing for a 3-4 year extension. The rationale is clear: with EV penetration currently at a modest 6-8%, reaching a ‘critical mass’ of 20-25% requires sustained demand, which in turn fuels investment, mass production, and the development of essential charging infrastructure. Since the government is unlikely to extend these subsidies, the industry must now innovate to stimulate demand.
Interestingly, Ms. Motwani believes that the recent reduction of GST rates for traditional internal combustion engine (ICE) vehicles, from 28% to 18%, will not negatively impact the electric vehicle market.
She elaborated on why EVs remain competitive: ‘Today, consumers are weighing both the initial purchase price and the long-term savings. Electric vehicle prices are steadily decreasing, now offering appealing options in the ₹90,000 to ₹1 lakh range. Battery costs, a significant factor, have dropped from ₹16,000 per kilowatt-hour five years ago to ₹9,000 per kilowatt-hour for two-wheelers, with further reductions anticipated. Furthermore, EVs enjoy a favorable 5% GST rate, and many states are waiving road tax, adding to customer savings. Governments are also increasingly mandating electrification for vehicle fleets, driving institutional demand.’
Coinciding with these discussions, Kinetic Green recently launched its new electric two-wheeler, the Luna Prime.
Looking ahead, Ms. Motwani shared ambitious growth targets: ‘The company aims to achieve a $1 billion (₹8,000 crore) revenue within the next 5-6 years, a significant leap from the current ₹500 crore.’
Kinetic Green is also expanding its portfolio through a joint venture with Tonino Lamborghini of Italy, focusing on electric golf carts and lifestyle carts.
Regarding this new venture, Ms. Motwani stated, ‘We plan to begin exporting these golf carts to the U.S. starting in January. Despite a current 50% tariff, a 200% anti-dumping duty imposed by the U.S. on Chinese golf carts still provides us with a competitive edge. We are hopeful for a resolution to the 50% tariff in due course.’
To support its growth trajectory, Kinetic Green successfully raised $25 million from the U.K.-based private equity fund Greater Pacific Capital. ‘We anticipate seeking an additional $30-50 million in funding during the financial year 2026-2027,’ Ms. Motwani concluded.