The Group anticipates that robust domestic sales of Luna will contribute an additional Rs 1,200 crore, aiming for a group turnover of Rs 2,000 crore by the end of FY25, up from the current turnover of approximately Rs 1,000 crore.
The Kinetic Luna, a moped that became a cultural icon in the 1970s and 80s, has been revived in a new electric form. Shortly after opening bookings for the e-Luna, Kinetic Green Energy and Power Solutions introduced the model, with the X1 trim priced at Rs 69,990 and the X2 trim at Rs 74,990 (both prices are ex-showroom Delhi and are introductory offers).
Kinetic Green Founder and CEO Sulajja Firodia Motwani expressed that the e-Luna is poised to leverage the legendary status of the Luna brand, which carries a wealth of nostalgia and positive sentiment.
Motwani highlighted that the e-Luna stands out as a distinct and innovative product, offering remarkable value at a competitive price, making it as impactful as the brand itself. She believes that the product has arrived at the perfect time. Additionally, Motwani mentioned that the e-Luna has already seen significant interest, with around 50,000 units booked by B2B customers and another 30,000 inquiries from B2C customers.
Amid the surge in the e-commerce sector and the increasing demand for gig workers for last-mile delivery in developing markets, Kinetic Green is eyeing international expansion with the upcoming electric version of its Luna moped. The company, based in Pune, expressed optimism about the growth prospects of its electric vehicle (EV) business and the expanding revenues of its group companies. It anticipates that the group’s revenues will double to Rs 2,000 crore by the end of 2025. After collaborating with several partners over the past decades, including Honda, Hyosung, and, more recently, AIMA from China, Kinetic has chosen to pursue its EV venture independently.
Kinetic aims to revitalize its presence in the domestic market with the beloved Luna brand, targeting sales of one lakh electric vehicles annually and planning to export to Vietnam, Malaysia, Thailand, and African markets. These markets are currently in the early stages of development, and Kinetic may consider establishing assembly bases there as they mature.
The company is currently raising Rs 250 crore in Series A funding to support its ambitious EV initiatives, though further details have not been disclosed. The final funding announcement is expected in March 2024, coinciding with the full operational status of its new production line in Supa, Maharashtra, which is capable of producing one lakh electric scooters annually.
Kinetic is set to launch a focused marketing campaign for the Luna, aiming to appeal to consumers in the Rs 25–30,000 income bracket in tier 2 and tier 3 markets, offering a monthly cost of ownership of just Rs 2,300. Additionally, Motwani confirmed plans to introduce a step-through bike in the Southeast Asian market by December 2024. Motwani is confident that the electric Luna will help reestablish Kinetic’s prominence in the market, reminiscent of the Kinetic Honda era.
Motwani highlighted the collaborative effort within the group in developing the new Luna, with components such as the chassis, gearbox, motors, and controller cluster converter being produced by various Kinetic divisions. This demonstrates the group’s strength and resurgence following a restructuring phase.
With plans to invest Rs 100 crore in Luna over the next year, Kinetic aims to expand its dealership network from the current 300-350 to 500 by September and then to 1,000 within the next two years. Kinetic Green is also planning to set up a new manufacturing plant, launch new electric two-wheelers, and reach a production milestone of one million units over the next five years.
