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TVS to double electric two-wheeler sales by March; lines up multiple launches

TVS Motor is looking to launch a range of products from 5kWh to 25kWh to expand its iQube line within the next 12-18 months. Premium
TVS Motor is looking to launch a range of products from 5kWh to 25kWh to expand its iQube line within the next 12-18 months.

TVS Motor aims to double its electric two-wheeler sales by March and launch a range of new products, from 5kWh to 25kWh, to expand its iQube line within the next 12-18 months, a senior executive said

NEW DELHI : TVS Motor Co. aims to double its electric two-wheeler sales by March and launch a range of new products, from 5kWh to 25kWh, to expand its iQube line within the next 12-18 months, a senior executive said.

“We are significantly growing our EV (electric vehicle) volumes. We are doubling our electric scooter sales every quarter and will continue this momentum in the fourth quarter, too. We will cross more than 100,000 units in sales by the end of this fiscal," K.N. Radhakrishnan, director and chief executive, told analysts in a post-earnings conference call on Tuesday.

In December, TVS sold 11,000 units of the iQube, placing it in the second position behind present market leader Ola Electric for the first time. It delivered 29,000 units of the iQube e-scooter in the December quarter, nearly doubling from 16,000 in the preceding three months. The Chennai-based company is now targeting a monthly production rate of 25,000 units as its supply chain aligns to meet the high demand for the scooter, the company said.

Besides three variants of the iQube scooter, TVS Motor will also launch its electric three-wheeler in the coming months, it said.

TVS Motor reported a stronger-than-expected financial performance in the quarter ended 31 December, with a 22.5% increase in net profit to 352.75 from 288 crore in the year earlier. Revenue climbed nearly 15% to 6,545.42 crore, as electric two-wheelers and high-capacity motorcycle sales increased during the quarter, in addition to better realizations from the price increases the company took during the quarter. The company has announced an interim dividend of 5 per equity share.

The iQube now comprises 10% of TVS’s total scooter sales, higher than the 5% average for the industry.

“We have more than 25,000 bookings for the iQube, and we are getting the supply chain aligned to fulfil these orders as demand is in excess of supply. But the supply chain is now supporting us in our ramp-up. Our ramp-up will be an integrated effort of keeping the dealership network and variants ready and ramping up the supply chain," the company said.

TVS is increasing its network footprint to 200 dealers in 110 cities. On possible rationalization of costs and customer acceptance in a post-FAME-II subsidy scenario, TVS Motor told analysts, “Customer acceptance for iQube is very good. If the volume is good, and we see that it continues growing, it can help us support the cost. Once we get the volumes, there will be a transformation in cell costs, chemistries, and we’ll be able to improve every other aspect of cost."

ABOUT THE AUTHOR

Alisha Sachdev

Alisha Sachdev is an assistant editor with Mint based in Delhi. She reports on the auto and mobility sector, with a special focus on emerging clean mobility technologies. She also focusses on developing multimedia properties for Mint and currently hosts the 'In A Minute' series and the Mint Primer podcast. Previously, she has worked with CNBC-TV18 and NDTV.
Catch all the Auto News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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