Come 2024, commuter segment motorcycles such as Hero Splendor, Bajaj Platina, Honda CD Dream and the like will see a different kind of competitor. Matter, which recently announced the launch of its e-motorcycle Aera, is developing electric bikes intended to grab a chunk of the largest segment of the traditional motorcycle market. What sets the company’s products apart is that unlike other e-bikes, their offerings come with gears.
The Ahmedabad-based startup is now actively working on electric motorcycles that would be taking on 100-125cc ICE (internal combustion engine) bikes. To be highly indigenised, the company expects this to be its biggest volumes driver in the long run.
Based on the UT and EXE concepts showcased at the Auto Expo, the as-yet-unnamed bikes will be launched in the next 18-24 months, a senior official of Matter told Moneycontrol in an exclusive interaction. While the product based on the UT concept is designed to be a utilitarian electric motorcycle that could be used by delivery service providers, the one built on the EXE concept will be a street bike designed for short commutes.
“We will be having a widest range of geared e-motorcycles which will be taking on various segments of the petrol-driven bike market. While Aera will be targeting customers who are looking for 150-180cc motorcycles like Apache, Pulsar, we also wish to tap the commuter end of the market in the 100-125cc segments,’ said Arun Pratap Singh, co-founder and COO, Matter, talking exclusively with Moneycontrol.
At the Auto Expo, the company revealed that the production version of the Matter EXE concept will be equipped with the battery swap technology and a manual gearbox which will provide full control of power delivery. Similarly, the UT electric vehicle concept has been tailor-made for the delivery service provider segment. The bikes will be equipped with two removable batteries for swapping, and the company will introduce a HomeDock Inverter that can be utilised for both mobility and domestic energy storage apps, the company said.
“The two electric concept motorcycles are built on the same platform. However, both have different applications. The production version of these two new concept EVs will arrive sometime in early 2024,” added Singh. When asked about the pricing and other details, he said, “The product is under development and the pricing cannot be determined at this moment. The specifications can be shared at the right time.”
According to the Society of Indian Automobile Manufacturers (SIAM), motorcycles with engine capacity above 75cc but less than or equal to 125cc saw a minor increase in sales volumes in the domestic market to 43,83,205 units during the April-January FY23 period from 42,19,062 units during the corresponding period a year earlier.
For motorcycles with engine capacities above 110cc but less than or equal to 125cc, the numbers went up to 23,83,814 units during April-January FY23 from 18,29,140 units in the same period last year.
In January, sales of commuter segment motorbikes more than 75cc but less than 100cc went down from 3,89,870 units to 3,69,589 units. In the more than 100cc but less than 125cc segment, sales went up from 1,99,471 units to 2,04,756 units.
When asked how Matter will be able to attract commuter segment buyers, a cohort that is price sensitive, Singh said, “Operating electric vehicles would be efficient when compared to ICE bikes. That segment is very sensitive to running costs as well. Petrol prices have already gone beyond $100 (per litre) in many parts of the country. We will be offering a range (per charge) that will push customers to make a switch to our products.” He did not spell out the details.
Matter also revealed that while it may diversify into the electric scooter segment in the medium term, e-motorcycles will account for the lion’s share of its total volumes. By 2028, it aims to be the biggest E2W manufacturer in the country.
Matter, which has investors including Baring Private Equity Partners, has raised $30 million till date. Last year, the e-mobility start-up initially raised $20 million from a diverse set of investors including Capital 2B, a technology fund backed by Infoedge, and Climate Angels Fund, and another $10 million from Barring India, apart from investments by its founders. The company had earlier revealed that the new investments will be deployed towards the launch of its line of electric mobility products as well as for setting up manufacturing facilities.
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