Whalesbook
Major Investment in India's EV Motorcycle Segment
MATTER Motor Works, an Ahmedabad-based electric motorcycle startup, is committing $100-150 million over the next three years. This fresh capital deployment follows nearly $100 million already invested since the company's inception in 2019. The funds are earmarked for expanding manufacturing capacity, deepening research and development efforts, and bolstering brand promotion.
Pioneering AI-Defined Vehicles
The company recently unveiled India’s first AI-Defined Vehicle (AIDV) platform. This initiative positions intelligence and software as the core of next-generation electric two-wheelers. MATTER anticipates this architecture will drive improvements in performance, efficiency, safety, and lifecycle value across multiple product lines over the coming 36–48 months.
Addressing Supply Chain Hurdles
Mohal Lalbhai, Founder and Group CEO of MATTER, highlighted that magnets, not semiconductor chips, are the current primary constraint for the EV industry. The company claims to have developed an indigenous motor technology utilizing iron and nitrogen. This innovation significantly reduces dependence on rare-earth materials, thereby mitigating supply chain risks and lessening reliance on China.
Global Backing and Market Entry
MATTER operates with backing from a diverse global investor base, including Capital2B, Helena Special Investments, Japan Airlines, and others. Commencing commercial operations in July 2025 from Ahmedabad, the company has already expanded to 15 cities and shipped approximately 1,000 electric motorcycles, with nearly 700 units currently in customer hands. Early customer feedback has been overwhelmingly positive.
Product Pipeline and Manufacturing
The company currently offers a single electric motorcycle equivalent to a 200cc engine, priced around ₹2 lakh. Future plans include launching 150cc and 125cc-equivalent platforms, alongside new form factors. MATTER’s Ahmedabad facility, with an annual capacity of 1.2 lakh units, is expected to suffice for the next 18–24 months, with further capacity expansion planned for 2027–28. Lalbhai noted that the electric motorcycle segment in India still offers significant untapped potential compared to the crowded electric scooter market.