Tonino Lamborghini SPA and Pune-based Kinetic Group have agreed to jointly produce electric golf carts in India and both companies are exploring the possibility of manufacturing small electric cars and two-wheelers in the future.
The two companies signed a memorandum of understanding on Monday at the ‘Magnetic Maharashtra Meet’, being held in Mumbai, in the presence of Maharashtra Chief Minister Devendra Fadnavis.
Over the next 90 days, Kinetic Green, a subsidiary of Kinetic Group, and Tonino Lamborghini Group will discuss and finalise the terms of the joint venture, including shareholding, investment, scope of the partnership and other commercial terms for manufacturing golf carts for the global market. If talks progress well, they may look at local manufacturing of electric cars and bikes.
Sullaja Firodia Motwani, CEO of Kinetic Green Energy, said the partnership with Tonino Lamborghini will offer a practical extension to the business of the company, which sells electric three-wheelers and buses.
“They are engaged in luxury brands… The idea is to design golf carts jointly, wherein Lamborghini brings in their design finesse and Kinetic Green will become the manufacturing hub to take advantage of low cost of manufacturing in India,” Motwani said.
Ferruccio Lamborghini, son of company vice-president Tonino Lamborghini, told ET that while the company did explore the possibility of getting into cars and golf carts in the late 90s, it decided to give up on the venture due to the tough business environment. He, however, said there’s a strong potential for a comeback.
“For us as a family, wheels never left. The car company is no more there in the family, but wheels didn’t go away. Under a different brand ISO and Town Life, we are in the process of coming out with electric bikes and we aim to do micro-cars in the future. Of course, Kinetic could be a potential partner,” Ferruccio Lamborghini said.
On the JV progressing to manufacturing electric cars and two-wheelers, Motwani said, “Focus is right now on e-golf carts and other off-road vehicles. If Lamborghini family wants to explore other plans and products, we are open.”
Although golf carts fall under a niche category in India with just 2,000-3,000 golf carts sold annually, about 300,000 units are sold the world over every year. Both companies see a potential of selling 5,000 golf carts over the next three to four years, generating business of about Rs 250 crore, according to Kinetic Green.
Kinetic Green has been in the electric vehicle space for the last four to five years and is the country’s largest electric three-wheeler maker. The company sold 10,000 electric three-wheelers last year.
Tonino Lamborghini Group already has a partnership with a Korean company for an electric car and bike venture, and Ferruccio said that in India any future alliance on electric cars and bikes will be for manufacturing and exports.
“We will never do a sports car, we have opportunity to do golf carts in our Lamborghini brand, but for bikes and cars, we can use the family brand name of ISO and TL. We don’t want to confuse the customers,” said Ferruccio Lamborghini.
Tonino Lamborghini is the heir of the Lamborghini family. However, his firm Tonino Lamborghini SPA is different from Automobili Lamborghini, the sportscar company which was founded by his father Ferruccio Lamborghini (Tonino’s son and father share the same name). The sports car company was sold to the Volkswagen Group in the late 90s.
The Tonino Lamborghini brand, which specialises in lifestyle experience brands, with a range of luxury design products including watches, eyewear, smartphones, perfumes, furniture, clothing, sports accessories, signature beverages, 5-star boutique hotels, lounges and restaurants. With Kinetic, they intend to get into premium golf carts for the world market.
Source: Economic Times