Companies
‘TVS Motor is investing in a future for EVs over 5-10 yrs’
Summary
TVS Motor Co. is expanding its presence in the electric two-wheeler market with the launch of the TVS X, a crossover between a motorcycle and a scooter
Dubai: TVS Motor Co., maker of the iQube electric scooter, only the second best-selling electric two-wheeler after Ola Electric, is expanding its play in the e-two-wheeler market with the launch of its first born-electric two-wheeler, a crossover between a motorcycle and a scooter which is aimed at young customers in the premium-end of the Indian and international electric two-wheeler markets. The launch of TVS X will be followed by the introduction of the latest generation of iQube EV, as well as more products in electric three-wheeler cargo and even electric bicycle space, Sudarshan Venu, managing director, TVS Motor, said.
The iQube EV is based on the Jupiter platform, which is an IC-engine scooter. The launch of the TVS X, which comes with a 4.4 kWh dual battery pack, 140 km range with a ₹2.49 lakh ex-showroom price tag, makes the two-wheeler maker the only one in the category to have products in both the convenience or comfort category and sports segment in electric two-wheelers. It will also feed TVS’s export ambitions, as the company explores new markets in Europe, besides Latin America and neighbouring nations where it has an export presence, from the next fiscal.
TVS is targeting doubling its electric vehicle sales to 40% of its portfolio by 2025, Venu told Mint, responding to when he expects sales of EVs to take over IC-engine products for the company. “We will start by targeting 40% of our scooters being electric in 2025, and then we’ll definitely build it in that direction from there," he said. “But there is some growth in IC engines, there are still new products coming from our side. Of course, the bulk of our investment is behind EVs. But especially in the premium segment we’ve done very well and our 125cc products are doing well also."
“Electric (vehicles) are very important to TVS’s future and we are investing heavily in that. Climate change is one of the most important factors that’s driving the world today and an important global theme. Within that, we are trying to do our best in mobility to embrace the opportunity, to embrace the trends and mega trends that climate change creates. That is why over the next five to 10 years, we believe in a very exciting future for electric and we’re investing in that. We’ve been investing in electric for over 10 years and therefore the iQube been extremely well received and is growing. Now we’re showing a product which showcases the capability, technology and vision of TVS and what we can do with it. The TVS X is positioned for GenZ and millennial buyers. From here, we will expand our distribution. From 300 touchpoints at present we will go to 1,000 and eventually all our dealers will carry electric vehicles. We’re launching electric three-wheelers for passengers and cargo, and there’ll be more e-two wheelers as well. We are investing in electrification and a majority of our capex is going towards it," Venu said when asked what is behind its strategy of investing aggressively in EVs even as other companies have a more cautious outlook.
According to Venu, TVS has “robust cash flows" and is “investing (in EVs)ourselves at this point. We see huge opportunity. And we’re investing for it. Our margins have also improved on the IC-engine side," Venu said. TVS Motor had earlier halted fundraise plans in its EV business, over uncertainties regarding the government’s redesigning of the FAME-II incentives. Sources indicate to Mint, TVS Motor may revive those discussions again with private equity firm Carlyle, with which it was nearing a deal.
TVS Motor is gearing up to produce 30,000 units of the TVS X in the first year, after it opens sales in India in November. The two-wheeler maker has designed and manufactured the battery pack, motor and controller unit for the TVS X EV in-house, unlike for the iQube, where key parts are sourced from its supplier base.
“This is priced differently and has a unique customer experience and really changes the game," Venu told Mint.
The reporter was in Dubai at the invitation of TVS Motor.
