Shares of Autoline Industries Ltd
. rose 10% and are locked in upper circuit after the auto components manufacturer announced that it has signed an agreement with Kinetic Green Energy and Power Solutions Limited, Pune, leading Electric Vehicle manufacturer in India, for joint development and nationwide marketing of electric bicycles (“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 25kmph and can run 25-35 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.
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!”