Matter Motor targets mid-segment riders with EV motorcycles and a tiered product strategy

In a market dominated by electric scooters and price-point dynamics, Ahmedabad-based startup Matter is making a different bet. Rather than chase scale through subsidies or simplified platforms, the company is building what it calls a true electric motorcycle, designed not as a scooter in disguise but as a viable alternative to the country’s vast 125–180cc ICE segment.

The decision to focus on motorcycles is not without risk. This is a segment where electric adoption still hovers below 1 per cent, and where product complexity—from drivetrain demands to thermal management—is considerably higher than that of scooters. But for Matter, that’s precisely the opportunity.

As Founder and CEO Mohal Lalbhai told HT Auto, “Motorcycles are the SUVs of the two-wheeler world. They need torque, control, and thermal stability. You can’t get away with oversimplification here."

Product pipeline

Matter’s first offering, the Aera, which was launched in 2025 is the country’s first geared electric motorcycle priced between ₹1.83 and ₹1.94 lakh, ex-showroom. But the broader roadmap is more layered. While the Aera is said to be comparable to a 180cc internal combustion motorcycle which is typically priced between ₹1.60 lakh to around ₹2.10 lakh, ex-showroom, a 150cc ICE-equivalent electric motorcycle is scheduled for launch in late 2026, followed by a 125cc model in 2027. The latter is expected to coincide with BS7 emission norms, which are likely to push ICE prices up and narrow the cost differential with EVs.

Both new products will retain Matter’s key engineering principles: manual gearboxes, liquid-cooled batteries, and segment-specific torque tuning. The aim is to avoid the feature inflation common in the EV market and instead meet core commuter expectations—durability, control, and manageable running costs.

In parallel, a second motorcycle platform—based on battery swapping architecture—is also in development. It is aimed at cost-sensitive commuter segments but won’t be ready for commercial deployment until 2028 or later. Matter is currently evaluating user safety, pack stability, and mechanical integration before scaling this format.

Retail Footprint: Slow rollout by design

Matter’s retail presence has so far been modest, focused on Ahmedabad. But in 2024, the company began expanding into Delhi, Pune, Bengaluru, and Jaipur, with a target of around 50 outlets by year-end. This includes both sales and service support, an area where many EV startups have lagged.

The expansion is phased. West and South India are being prioritised in the current cycle, with North India expected to follow around early 2025, timed around Holi. Rather than aiming for rapid dealership proliferation, the company appears to be validating product-market fit and ensuring aftersales support before chasing wider volume.

Also watch: Matter Aera 5000+ review: Can India’s first geared electric motorcycle be a gamechanger?

Meanwhile on the global scale, by 2026 Matter plans to begin exports to Southern and Eastern Europe, Southeast Asia, and select African markets. These regions have varying degrees of EV readiness, but Matter is conducting early feasibility and homologation studies to align with each market’s regulatory environment and customer expectations. What’s notable is that these export plans are tied to the motorcycle format—Matter does not currently operate in the scooter space and does not appear to have short-term plans to enter it.

Capital, profitability and scale questions

Since its founding in 2017, Matter has invested ₹600 crore—largely in drivetrain engineering, thermal systems, and battery R&D. Over the next three years, an additional ₹1,500–1,600 crore is planned to support product expansion, retail growth, and manufacturing scale-up.

The company is targeting EBITDA-level profitability within this investment cycle, though much depends on how quickly motorcycle EV adoption grows and whether the upcoming 125cc and 150cc models can hit volume targets without heavy incentive dependency.

Matter had originally projected ₹1,000 crore (approximately $1 billion) in sales by 2025. That number has now been pushed back by five to six years, a recalibration driven by supply chain challenges, product maturity timelines, and a deliberate decision to launch once the company’s internal benchmarks—not market pressure—were met. “The delay is not because we didn’t have a market," said Lalbhai. “It’s because we weren’t going to launch a product until it was ready."

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