Matter Sets Up 10,000 Units Monthly Production Capacity

Gearing up for scale, Matter rolls out AERA across India, plans annual launches and eyes $200M to drive EV momentum.

Electric motorcycle manufacturer Matter Motor Works will launch one new model each year for the next three years, Co-founder and Group COO Arun Pratap Singh said on Thursday.

This announcement coincided with the Delhi debut of the company’s first geared electric motorcycle, AERA, marking its expansion beyond its initial launch market in Ahmedabad.

As part of its scale-up strategy, Matter plans to open 50–60 dealerships across India by the end of the 2024–25 financial year. Of the initial 30 outlets targeted by August, 20 will be in South India, where consumer demand for electric motorcycles is reportedly stronger.

Initially, AERA was launched exclusively in Ahmedabad, where it underwent a six-month pilot phase. During this period, the company gathered customer feedback and implemented minor technical improvements.

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Following these refinements, nationwide deliveries commenced in October 2024, marking the culmination of a six-year development process.

Building on this launch, Matter aims to sell 10,000 units in its first full year, with plans to increase this to 50,000–60,000 units in the second year. To support this growth, the company has established a manufacturing facility in Ahmedabad with a monthly production capacity of 10,000 units, which Singh said is currently sufficient to meet short-term demand.

To further accelerate its expansion, the company has already raised $80 million and is now seeking to raise an additional $200 million over the next two years. Singh added that an initial public offering (IPO) is also under consideration within the next three to four years, depending on market conditions and internal progress.

At present, Matter remains focused solely on electric motorcycles, with no plans to enter the electric scooter segment, Singh confirmed when asked about product diversification.

Meanwhile, the company is addressing ongoing supply chain vulnerabilities, particularly concerning the availability of rare earth magnets, which are vital components in electric motors.

In light of this, Matter is exploring alternative suppliers outside China to strengthen supply chain resilience and reduce dependence on critical imported materials.

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kanishka kumari
kanishka kumari
Kanishka Kumari is a journalist at EFY. She writes about the electronics business with an interest in emerging technologies and industrial growth models.

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