TVS Motor to launch new electric two-wheeler this financial year

In a bid to strengthen its position in the burgeoning electric two-wheeler market, TVS Motor Company plans to launch a new electric two-wheeler in the current financial year. The automaker also has plans to launch an electric three-wheeler this year.

"As you are aware, we are well-planned for the electric mobility product line. You will be witnessing some more launches during this financial year...a new product is going to come to a customer segment. That will come in this financial year," TVS Motor Director and CEO KN Radhakrishnan told investors.

TVS Motor had been the second-largest electric two-wheeler brand in terms of sales after Ola Electric with its two-wheelers under the iQube range till August.

However, Bajaj Auto claimed the number two position from TVS Motor in September. Bajaj Auto’s Chetak range of electric scooters outsold TVS iQube, and narrowed the gap between the market leader Ola Electric.

TVS Motor's iQube range has four variants with 2.2 kWh and 3.4 kWh battery capacity, priced in the range of Rs 89,999 to Rs 1.56 lakh. Apart from iQube, the company also has a premium electric scooter – TVS X, which comes at a starting price of Rs 2.50 lakh.

With electric two-wheeler penetration still in single digits, automakers see a significant scope for growth in the segment. Radhakrishnan, however, did not disclose more details about the new product but just said it would be in the new segment.

"We time the launches. We want to make sure we grow ahead of the industry. It is a very measured call. On one side we keep developing the product and then we decide when to launch the product," he said when asked if there is a delay in launching the new electric two-wheeler.

In the first half of this financial year, TVS Motor dispatched a total of 1.27 lakh electric scooters, against 96,191 units in the year-ago period. Revenue from the electric vehicle business totaled Rs 1,600 crore during the period.

Meanwhile, the company also plans to introduce an electric three-wheeler this year with the segment witnessing rapid electric vehicle adoption.

TVS Motor has been betting big on investments in the electric vehicle business and technologies, and geographical expansion to grow its revenue in the long term.

The company’s management has also mentioned that electric vehicles will be the top priority for TVS Motor going forward. It believes new innovative product formats and lowering the total cost of ownership by battery and propulsion system R&D can help improve its market position.

The company lined up a capital expenditure of Rs 1,200-1,400 crore for the current financial year. Around 70% of it will be spent on developing new two-wheelers and three-wheelers in both EV and ICE segments, besides building digital capabilities.

READ MORE: 2W industry to grow 7-8% YoY in Q3, says TVS’ Radhakrishnan