MUMBAI: Pune-based Kinetic Group’s company Kinetic Green Energy & Power Solutions have signed an MoU with Italian luxury accessories brand Tonino Lamborghini Group to set up a new joint venture company in Maharashtra for the design and manufacture of premium segment golf carts and other electric off-road vehicles.
Under the MoU, the Lamborghini family will also provide the Tonino Lamborghini brand license to the JV; both companies will leverage the existing network and marketing channels to promote and market the joint venture products in India and globally.
The new JV will leverage Kinetic Green’s existing R&D as well as manufacturing facilities located in Ahmednagar district of Maharashtra where the company manufactures electric three-wheelers.
Over the next three months, Kinetic Green and the Tonino Lamborghini Group will discuss and finalise the further terms and conditions of the JV, including shareholding percentage, investments, JV scope, business plan and other commercial terms, before arriving at a definitive agreement, Autocar Pro reports.
Announcing the JV on the sidelines of the Magnetic Maharashtra event here, Sulajja Firodia Motwani, founder and CEO of Kinetic Green Energy & Power Solutions, said, “The whole world is moving towards green technology oriented vehicles for a better tomorrow. We are happy to announce the joint venture with one of the world’s most admired and luxury brands. Kinetic Green is keenly looking to tap the global market with high-end golf carts and off-road electric vehicles along with our JV partner, the Lamborghini family.
The golf carts segment is growing at rate of over 7.5 % CAGR and currently has a global market size of 300,000 units with North America and Europe accounting for the maximum market share.
Speaking at the occasion, Ferruccio Lamborghini, vice-president, Tenino Lamborghini, said: “Electric vehicles are nowadays under the spotlight as never before, and in this era of changes the world is becoming aware of the potential and benefits that e-vehicles can provide. Golf carts are not unknown for Tonino Lamborghini, as the brand started to produce premium golf carts in 1990. We are very proud to announce the brand is discussing with Kinetic Green to set up a JV company which will aim to look to future and provide a vision, not only products. Following the Lamborghini family entrepreneurial spirit, we are ready to embrace this challenge and the strategies in the following weeks will be defined in order to jointly put all our values into the project to soon participate to this change.”
Lamborghini told newswire PTI that the Kinetic Group has the right distribution network and manufacturing capabilities making it a good draw for his company to be associated with.
Since the past two years, the Kinetic Group has been selling the MV Augusta brand of Italian super premium racing bikes in the country, the top-end which are priced upwards of Rs 5 million.
Motwani told the newswire that the joint venture is planning to produce 5,000 golf carts annually over the next four years which will accrue in revenue of around Rs 2.5 billion. “The market for such carts is very large, and is worth $2.5 billion per year,” she asserted.
“Even if we manage to garner 2 % of the market, it will be sizeable revenue,” Motwani said.
