Matter Paves Way For Next Generation Intelligent, AI-Defined EVs

As the automotive industry continues its transformation through electrification and digitalisation, a new term is emerging in the mobility lexicon — AIDV, or Artificial Intelligence-Defined Vehicle. In a recent conversation with Acko Drive, Mohal Lalbhai, Co-Founder and CEO, Matter India, discussed how the industry is evolving from Mechanically Defined Vehicles (MDVs) to Software-Defined Vehicles (SDVs) and now toward AIDVs, signaling a major leap in intelligence, modularity, and sustainability.

Transition from MDVs to SDVs to AIDVs

“Mechanically defined vehicles are your classic internal combustion vehicles from 30 years ago. No electronics, nothing. Pure play mechanics — everything is a nut and bolt,” said Mohal. As emission regulations and performance expectations have grown over the years, manufacturers gradually started introducing electronics to improve efficiency. 

These incremental changes have paved the way for Software-Defined Vehicles (SDVs), where “the feature is defined by software, and electronics are just an enabler.” The SDV era marked a pivotal point: vehicles were no longer differentiated by mechanical components alone but by the intelligence of their software systems.

Despite this progress, the current SDV framework still carries limitations. “To a customer, we are offering things which are still largely preset,” said Mohal. Ride modes, torque profiles, and energy efficiency settings remain preconfigured, restricting adaptability across vehicle categories. He further went on explaining how this rigidity prevents true scalability.

Mohal added, “If I wanted to use the same motor for a 125 cc equivalent, it’s an overkill. Or if I use it for higher-end performance, it will be insufficient.” To address this, Matter has envisioned a more flexible, modular, and software-adaptive architecture that has laid the foundation for the AIDV.

One of the core design philosophies behind AIDVs is simplification through centralisation. Current vehicles rely on six to seven separate ECUs (Electronic Control Units), each managing a different function. This setup increases material, wiring, and processing costs.

“When I can put all of that into one single core central intelligence, essentially all of this around what I spoke about disappears,” Mohal explained. “Simplification actually leads to cost optimization also.” By 2027, the company expects AIDVs to achieve price parity — or even outperform — internal combustion vehicles, driven by the efficiency of this unified design.

Rare Earth Challenge and Iron Nitride Innovation

Mohal also addressed one of the most pressing challenges in the electric vehicle sector — the dependence on rare earth elements for motor magnets. “Rare earth magnets have fantastic performance but are expensive,” he noted. “Ferrites are cheap but one-tenth in terms of performance. So, the motor becomes larger and heavier — detrimental to an EV.”

To overcome this, the company is investing in iron nitride magnet technology, which promises near-rare-earth performance using two of Earth’s most abundant materials — iron and nitrogen. “This technology allows us to get the same performance as heavy rare earths. The cost is only slightly higher than ferrite,” he further added.

When combined with variable flux drives, these motors enable programmable magnetic behavior, enhancing performance while reducing environmental and geopolitical dependencies — a critical step toward sustainable electrification.

Future Product Roadmap: Top-Down Strategy

The company has already built working prototypes of its iron nitride-based motors and is internally testing them on its upcoming motorcycles. “We are looking at bringing this into production with our 2027 mass market,” Mohal confirmed. “That is where the real full flavour of AIDV is going to come in.”

The 2027 model lineup will mark the company’s complete transition into the AIDV era, uniting sustainable materials, centralized intelligence, and adaptive software control under one platform.

When asked about Matter’s product roadmap, Mohal affirmed that the company is following a top-down approach, with the Aera as its flagship model which is equivalent to a 200 cc combustion model equivalent segment. Matter is working on a 150 cc equivalent electric bike, which is slated to launch this year, and a 125 cc equivalent the next year. The latter will be built on the AIDV platform.

“From 2027 onwards, it’s all going to be AIDV,” the executive confirmed. “We will also start rolling out some consumer-side AIDV features from the summer this year.” By 2028–2029, the company plans to extend this platform to electric scooters and new form factors, diversifying its product lineup while maintaining a unified intelligent core.

Also READ: Matter showcases AI-Defined Vehicle Platform, Rare Earth Free Electric Motor

Expansion of footprint, growth in volumes

Matter launched its first product, Aera, in June last year. It also happened to be the "EV Bike of the Year 2025" at TOTM. The world's first geared electric motorcycle, around 1,000 units of the Aera have been shipped till date, with 700–750 currently with customers. After a careful rollout across 15 cities and 20 dealerships, Mohal claims that expansion is now accelerating. He stated that Matter aims to sell 20,000 vehicles this year. At present the company has more than 20 touchpoints across the country which it plans to expand to 125 by the end of 2026.

Matter’s dealership model follows a 3S approach — Sales, Service, and Spares, ensuring comprehensive customer support. Mohal also revealed that upcoming Aera updates will focus primarily on software enhancements rather than hardware changes. These updates will be delivered digitally, expanding functionality and performance across existing customer vehicles.