Kinetic Motor is to raise funds for meeting its working capital requirements and to carry out the ad campaign for its gearless scooter Flyte.

The company is going to enhance its Kine brand as an electric scooter which will be launched early next year.

During the launch of Flyte in Mumbai, Sulajja F Motwani, managing director said that the company is planning to work on capital mobilization and will be announcing the details in a month

The company has invested Rs 15 crore in setting up a new assembly line and further plans to spend another Rs 12 crore in the next six months in advertising alone. The company is planning for the brand and product awareness in the market so that it can compete with Honda Motorcycle and Scooters’ Activa and TVS Motors’ Pep+.

Kinetic which has produced Flyte in collaboration with Taiwan-based strategic and financial partner SYM is expecting great success. Some other brands which the company will be competing with are Hero Honda with Pleasure, Bajaj Auto with Kristal, and Suzuki Motorcycle with Acces and some other players of the 40,000 units a month market size. At the same time the Kinetic Motors is expecting to sell 80,000 units this fiscal year.

Kinetic previously has achieved great success with Luna and Kinetic Honda.

Motwani said that the entire two-wheeler market has gone down by 7.2 percent but at the same time the gearless scooter sales has increased by 17 percent.

Add a comment

Posted by Esther Christian on 29 December, 2007 6:40:42 PM IST #