New Delhi: Kymco, a Taiwanese maker of electric two-wheelers, said it will invest $65 million in Twenty Two Motors Pvt. Ltd, a Haryana-based electric scooter startup. The investment, which will be made over three years, will see the companies collaborate to develop electric two-wheelers for the Indian market.
The companies did not disclose the quantum of stake Kymko will own in Twenty Two Motors after the investment. Kymko’s foray is yet another proof of foreign electric vehicle (EV) makers intensifying their focus on India, following the government’s plan to prepare a policy to promote the adoption of electric mobility.
Kymko will initially invest $15 million in Twenty Two Motors, and the remainder over the next three years. The companies will launch scooters under the ‘22 Kymko’ brand, with the first product slated to go on sale this fiscal year.
Allen Ko, chairman, Kymko, said that electric two-wheelers hold more potential in India than China as the market size is bigger. He said Kymko’s engineers are working with their partners from India to develop the scooters in the country.
He expects half a million 22 Kymko brand of scooters to be sold over the next few years in India.
“We envisioned to facilitate Indian customers with smart EVs and a proper infrastructure with charging stations and efficient battery and our partnership with Kymco is the next step in this direction," said Praveen Kharb, co-founder and chief executive Twenty Two Motors.
“This unique partnership will prove to be a revolution for fundamentals of Indian auto sector which no one expected so far as we shall be creating a complete new ecosystem for premium EV mobility in India," Kharb said.