Amid the rising disruption of EVs and shared mobility, TVS Motor Company, India's third-largest two-wheeler maker, intends to develop the dynamics of the start-ups and link them to its core business.
Having been on an acquisition spree, TVS Motor has picked up a stake in emerging companies such as EBCO in UK, Drive X, ION Mobility, and SEMG amongst others, and the company wants to gain from their expertise and transition into "a smart mobility company.”
Ralf Speth, Chairman of TVS Motor Company told shareholders at the 31st Annual General Meeting on Tuesday, "It is our intention to develop the dynamics of the start-ups further, independently. Simultaneously, of course, we want to use these potentials and gain additional value in our core business. The experienced TVS team is leading the transition into smart mobility. With very well selected acquisitions, TVS strengthened its capabilities further."
While TVS Motor is banking on its global marque partner BMW Motorrad to help the company expand its electric two-wheeler expertise, through its acquisition of SEMG in Switzerland, TVS is looking at opportunities to expand the core product range extend into adjacent segments with electric bicycles, including e-kick scooters and e-cargo bikes, which are emerging trends.
"The experienced TVS team is leading the transition into smart mobility. With very well-selected acquisitions, TVS strengthened its capabilities further," said Speth.
Dedicated EV Team set up to deliver robust products
TVS has set up a dedicated EV team to rapidly transform into electrification, ramp-up the direct and indirect product pipelines – and offer our Indian-tested, most reliable products internationally.
On EVs, Speth said, the industry witnessed a strong growth of the EV-two-wheeler industry with sales of 7.18 lakh units translating to a growth of about 2 times over FY22.
"The heightened consumer interest is driven by the alluring ‘Total Cost of Ownership’, digital-first technology propositions, the FAME II and PLI support from the central government combined with state-specific support that EVs offer. If consumers consider increasing fuel prices, EVs are even more attractive," said Speth.
Speth believes that as electric mobility gains momentum in India and other countries, it will prompt disruptions and structural shifts in the automotive industry.
On its part, the chairman said TVS will launch desirable, new products with the latest technologies in electric/electronic architectures and high energy efficiencies.
The chairman of TVS believes the EV industry is slated to grow rapidly and TVS has robust plans for this segment. In addition, with the strategic association with BMW Motorrad, TVS will be working jointly on design and development of EV vehicles for the global markets.
The PLI and FAME II initiatives of the government will be fully leveraged by TVS to strategically build a sustained dominant play in this segment, he assured.
"Our team is determined to deliver additional values for our customers. TVS is leading the way to smarter EV mobility and better living conditions," he added.