TVS eyes 40% share from EVs by 2025, aims to strengthen global play with new X

TVS Motor Company, which had the global unveiling of its all-new flagship electric scooter – the TVS X – tonight is aiming for strong global play with this high-on-technology EV. The TVS X has seen significant efforts from the company's in-house R&D teams, which have contributed to the development of the electronic and software architecture of the radically styled electric scooter.

The company has invested Rs 250 crore into the new X, which is built on a new, ground-up EV platform, that allows it to break away from the barriers of riding dynamics typically associated with traditional, internal-combustion engines (ICE)-powered two-wheelers.

TVS Motor Co is eyeing a niche audience with the premium X EV, which is aimed at the Gen-Z buyer in India. The company is targeting annual volumes of 30,000 units from the domestic market, and is confident about the product's potential for global markets.

TVS is keen to sell the X EV in Europe, South East Asia, LATAM and UAE.

"We have big plans for Europe, South East Asia, and markets like Latin America as well as UAE with the TVS X, which is an extremely high-technology product, and we want to take it to as many markets as possible," said Sudarshan Venu, Managing Director, TVS Motor Company.

The company is eyeing global play with the TVS X in the next financial year - FY25 - when it intends to take its technologically advanced product to several markets, including its existing export destinations - Nepal and Bangladesh.

TVS, which has launched the X in India at Rs 250,000, ex-showroom, is clearly aiming at a premium positioning of the product, but is confident about its prospects. "We are confident that we are rightly pricing the X, which is targeted at a unique set of customers, and there are plenty of them in the market,"; said KN Radhakrishnan, CEO, TVS Motor Company.

TVS is already India's No. 2 two-wheeler exporter after Bajaj Auto. In FY2023, the company shipped a total of 915,018 two-wheelers overseas despite depressed export market conditions. In the first four months of FY2024, TVS' exports have totalled 270,084 units.   

Given that a number of countries, including the ASEAN which has a massive two-wheeler parc, are making the transition to electric mobility, TVS will be looking at EV exports as a new business opportunity, with the tech-laden TVS X as a premium offering.

In February 2023, in a strategic move to expand its global EV footprint, TVS announced its association with Singapore-based tech company Ion Mobility with an aim to provide Ion the necessary ecosystem support to be successful in the electric two-wheeler markets of Singapore and Indonesia.

Bullish about electrification

With India seeing a rapid increase in the demand for EVs, which registered a record million-plus sales in India in CY2022 across vehicle categories, TVS is bullish about the future growth in the EV segment.

The company expects two-wheeler EV sales in India to reach 30 percent market penetration by CY2025. Importantly, it aims to double the contribution of EVs to its overall volumes from 20 percent to 40 percent over the next two years. "EVs are very important for our growth and we will aim to work towards bringing more platforms and sustainable products to the market," said Sudarshan Venu.

In the first seven months of CY2023, TVS Motor Company clocked overall EV sales of 87,397 units from its sole e-two-wheeler product – the iQube electric scooter – and has averaged monthly sales of 12,485 units in the calendar year thus far.

While most of its future investments are skewed towards electrification to come up with future-ready products, the company is also banking on the immense scooterisation potential of India driving growth for the segment. "There is a huge market potential for two-wheelers in India, and while we will see huge growth in EVs over the next two years, we will continue to see sustained demand in the ICE two-wheeler segment as well," added Venu.

The company which is positioning the X as a flagship e-scooter in its portfolio, and targeting the aspirational and discerning buyer, will also deploy innovative retail strategies to offer a unique buying experience to its customers.

The TVS X is to be launched first in Bengaluru in November 2023, followed by a sales rollout in at least 15 cities by end-FY2024, with the company also leveraging digital retail to sell the product.

ALSO READ: 

Electric two-wheeler sales in July cross 54,000 units, improve on tough June by 18%