Matter, a Gujarat-based electric vehicle (EV) and tech company plans to start delivering India’s first electric motorcycle with a manual gearbox by next calendar year. The company had scheduled the deliveries of its first motorcycle AERA in September but the delivery timeline has been delayed. In an exclusive interaction with Business Today, Matter CEO Mohal Lalbhai announced that the production of its electric bikes will start in the next quarter. He also highlighted the challenges in maintaining a smooth supply chain. However, he assured that the company is committed to the “Make in India” initiative.

Lalbhai stated, “We import cells, magnets and semiconductors but everything else is designed by us and made in India.” He claimed that 80 per cent of the parts come from within the region.

The company’s dedication to local sourcing extends to collaborations with key tier-one suppliers in the country. According to Lalbhai, “Every component on our vehicle, except for cells, magnets, and semiconductors, is made in India. Motors, electronics, battery packs, and vehicle assemblies are all done in-house. Other components like tyres, wheel rims, and casings come from our suppliers in and around Ahmedabad. We have achieved 97% localization.”

Matter claims to have also taken proactive steps to ensure a stable supply chain, considering disruptions due to the pandemic. “The pandemic posed a big problem for our supply chain. We had to redesign some components completely because those chips never came back into production after the pandemic. We started locking down long-term orders and have signed strategic agreements with chip manufacturers from Japan, Europe, and North America for the supply of parts for the next 10 years,” Lalbhai explained.

He further added, “We’re working with the largest suppliers in the tire, lamp, suspension, and clutch industries. We’ve been working with our partners for the last three years to get our product right, and that’s how we’re ready to start production in the next quarter.”

Talking about the plans to meet demand and expand production, Lalbhai stated, “We had originally planned for September, but now we’re looking at November. However, the auto industry doesn’t see much buying in November, December, and January. So, considering all perspectives, we’re looking at starting deliveries in the next quarter. Until then, we’ll spend our time building enough inventory because we have a 40,000 order book which we plan to deliver in the next calendar year. We’ll be starting production from the next quarter and ramping up through to Diwali, which is when we hope to peak out in terms of max plant capacity.”