Matter sets ambitious electric two-wheeler expansion plan

Electric motorbike maker Matter has outlined a $150 million investment programme running through the 2028 calendar year, signalling a sharp acceleration in its manufacturing capacity, product development and market reach as competition intensifies in the electric two-wheeler segment. The company has set an annual sales target of between 1.50 lakh and 1.80 lakh electric motorbikes by 2028, positioning itself among the more aggressive growth players in the domestic clean mobility market.

The planned capital deployment is expected to be channelled into scaling production facilities, expanding supply-chain partnerships, strengthening in-house research and development, and widening the company’s distribution footprint across urban and semi-urban centres. Matter’s strategy reflects a broader industry shift in which electric two-wheeler manufacturers are prioritising scale and cost efficiencies to move beyond early adopters and appeal to mass-market consumers.

Company executives have indicated that a significant portion of the investment will go towards capacity expansion at its manufacturing base, enabling higher throughput and improved quality control. The move comes as demand for electric motorbikes gathers momentum, driven by rising fuel costs, tighter emissions norms and growing consumer acceptance of electric mobility as a practical alternative to internal combustion engines.

Matter’s growth blueprint also hinges on continued innovation in drivetrain and battery technology. The company has focused on differentiating its offerings through performance-oriented electric motorbikes, rather than limiting itself to low-speed commuter models. Industry analysts note that this positioning could help Matter carve out a distinct niche, particularly among younger riders seeking a blend of sustainability and riding dynamics traditionally associated with petrol-powered motorcycles.

The target of selling up to 1.80 lakh units annually by 2028 implies a steep ramp-up from current volumes, underscoring the scale of execution required over the next three years. Achieving this would demand not only manufacturing expansion but also a robust charging ecosystem, dependable after-sales service and competitive pricing. While public charging infrastructure remains uneven, manufacturers have increasingly relied on home-charging solutions and partnerships with energy providers to ease adoption barriers.

Market observers point out that the electric two-wheeler space has become crowded, with established two-wheeler majors and venture-backed start-ups vying for consumer attention. In this environment, access to long-term capital and disciplined cost management are viewed as critical success factors. Matter’s $150 million investment plan suggests confidence in its business model and an ability to attract sustained funding support.

The company’s expansion strategy also aligns with policy signals encouraging electric mobility, including incentives for manufacturers and buyers, as well as state-level support for electric vehicle manufacturing clusters. However, the sector has faced periodic policy recalibrations, particularly around subsidy structures, prompting companies to increasingly focus on achieving profitability without heavy reliance on incentives.

Supply-chain resilience forms another pillar of Matter’s roadmap. The company is expected to deepen localisation of key components, including battery packs and power electronics, to reduce exposure to global price volatility and logistics disruptions. Greater localisation could also help contain costs and support faster production scaling, a necessity given the ambitious sales targets outlined for 2028.

From a consumer perspective, Matter’s push into higher volumes will test its ability to maintain product reliability and service quality as its customer base expands. Early-stage electric vehicle makers have often faced scrutiny over service responsiveness and spare parts availability once sales volumes rise. Addressing these issues proactively will be central to sustaining brand credibility in a highly competitive market.

Industry experts also highlight the importance of software and connectivity features as differentiators in electric two-wheelers. As riders increasingly expect app-based diagnostics, over-the-air updates and smart security features, companies investing in digital capabilities may gain an edge. Matter has signalled intent to continue enhancing its technology stack alongside hardware investments, suggesting a holistic approach to product development.