Matter to unveil two new e-mobikes in two years, plans $150 mn push

Founder Mohal Lalbhai says company will also invest $150 million, expand dealership network

Electric motorcycle (e-mobike) maker Matter Motor Works plans to launch two new e-mobikes over the next two years, its Founder and Chief Executive Officer Mohal Lalbhai said on Wednesday, adding that the company is also looking to invest around $150 million over the next two to three years.

 

Matter began sales of its first motorcycle, the Aera, in July last year and recorded wholesale sales of about 1,000 units during the July–December period.

 

“This year, our sales could be around 20,000 units. In 2027, the company’s sales would rise to close to 90,000 vehicles. The company’s plant in Gujarat has the capacity to produce 120,000 units per year. Therefore, in the second half of 2027, we would start deploying capital expenditure (capex) for the next facility,” Lalbhai told Business Standard in an interview. He added that the company aims to sell close to 150,000 units in 2028.

 

Matter is also expanding its dealership network across the country. It currently operates 20 dealerships across 15 cities. “By the end of this year, we will have 125 dealerships in 60–80 cities. The number of dealerships would then increase to 250 in 2027 and 400 by 2028,” Lalbhai said.

 

“We have made a $100 million investment to date. Over the next three-odd years, we are looking to invest another $150 million. This includes the aforementioned capex for a new plant,” he added.

 

On future product launches, Lalbhai said, “We are now going to launch a 150cc e-mobike in 2026 and a 125cc e-mobike in 2027. After that, we will return to different form factors (styles and designs) in 2028–29. Once our motorcycle portfolio is complete, around 2028–29, we will also look at entering the family scooter space.”

 

At present, e-mobike penetration in India is close to negligible, unlike the scooter segment, where electric scooters account for nearly 20 per cent of sales. Lalbhai said Matter is keen to see more credible products from other players, as a new segment cannot be built by a single company.

 

“When it comes to internal combustion engine (ICE) motorcycles between 100cc and 350cc, customers today have close to 100 product options. What is needed is more choice when it comes to e-mobikes. We need two to three more serious players in the e-mobike segment,” he said.

 

He added that many e-mobikes launched in India so far were essentially “scooters dressed up as motorcycles” because they lacked a gearbox, riding feel, and rider control.

 

“If a customer takes a test ride of an e-mobike, it should only be after the ride that he or she realises it was an electric motorcycle and not an ICE one,” he said.

 

Lalbhai said the adoption curve for e-mobikes is likely to be steep. He added that if India sees six to eight e-mobike models in the 100–200cc segment over the next two to three years, penetration could reach close to 20 per cent by 2030.

 

On the need for government support, he said, “Motorcycles, I believe, will need help. Whether that help is in the form of direct-to-customer subsidies or supply-side production-linked incentive schemes is something I leave to the government to decide. But some support in the early years, especially on the research and development (R&D) side, is needed because the technology and ecosystem at the core do not yet exist.”

 

“If the government were to say, ‘Okay, if you guys spend on R&D, we’ll help you out’, that is also good enough for us to get to where we need to be,” he added.