Matter, an EV and technology company based in Gujarat, India, is set to introduce the nation’s maiden electric motorcycle featuring a manual gearbox. The launch of their first motorcycle, AERA, was initially planned for September but has been postponed. Matter’s CEO, Mohal Lalbhai, revealed in an exclusive conversation with Business Today that their electric bike’s production is slated to begin in the forthcoming quarter. Despite some supply chain obstacles, the company is deeply committed to the “Make in India” initiative.
Lalbhai emphasized that the majority of the components for their vehicle are manufactured domestically. He specified that aside from cells, magnets, and semiconductors (which are imported), nearly 80% of the parts are sourced locally. Lalbhai also noted that the company has attained an impressive 97% localization in their operations, with crucial collaborations with significant tier-one suppliers in India.
Amid challenges caused by the pandemic, Matter has taken proactive measures to ensure a stable supply chain. Lalbhai explained that they had to redesign some components due to chip production disruptions during the pandemic. To safeguard against future interruptions, the company has established long-term agreements with chip manufacturers from Japan, Europe, and North America for a consistent 10-year parts supply.
In addressing the production timeline, Matter anticipates beginning deliveries in the subsequent quarter rather than the previously planned September, aligning with the auto industry’s seasonal buying trends. Lalbhai also highlighted the company’s intention to build inventory to fulfill the orders of around 40,000 motorcycles scheduled for the next calendar year. The production is set to initiate in the next quarter and progressively scale up leading to Diwali, aiming to achieve maximum plant capacity during that period.
