TVS will Concentrate on Growing The Electric Vehicle Market

TVS Motor Company intends to expand its role in the electric segment, according to the company’s annual report for 2021-22.

  • Company to focus on new EVs for domestic and international markets
  • TVS to jointly develop EVs with BMW Motorrad
  • Aims to leverage central government’s PLI and FAME II schemes to scale up

By leveraging various government initiatives such as the production-linked incentive (PLI) scheme and FAME II, TVS Motor Company hopes to expand its role in the electric vehicle (EV) segment (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). With increased growth expected in the EV segment, TVS plans to focus on new EV products for both the domestic and international markets, according to the company’s annual report, which outlines the Indian two-wheeler manufacturer’s future plans in both the EV and traditional petrol-powered two-wheeler segments.

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“The company has established a vertical to rapidly expand its product pipeline and global presence. The government’s PLI and FAME II initiatives will be fully utilized by the Company in order to strategically build a long-term dominant position in this segment. In its annual report for 2021-22, TVS Motor Company stated, “The industry is expected to grow rapidly, and the Company has robust plans for this segment.”

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“As this category gains traction, the Company continued to expand its EV footprint and infrastructure buildout.” With over 600 engineers, the company has established a dedicated vertical and implemented the Centres of Competency (COCs) with an agile working approach. The EV 2W industry is primarily a scooter industry, accounting for about 10% of the total scooter industry (ICE + EV). In 2021-22, TVS sold more than 10,000 electric vehicles, accounting for more than half of the EV industry’s geographical presence,” the company said.

Regarding TVS Motor Company’s partnership with BMW Motorrad, under which TVS manufactures a common platform for both BMW motorcycles, the BMW G 310 R and BMW G 310 GS, as well as the TVS Apache RR 310, the company stated that the partnership will be expanded to include new platforms and electric vehicles.

“The company’s strategic partnership with BMW has grown. The company hopes to collaborate on new platforms and future technologies, such as urban-centric electric vehicles, as a result of the partnership. The products will be aimed at global urban centric markets and the “cool” next-generation consumer, according to TVS.

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Despite global challenges and a difficult business environment, the company expects to outperform the industry in sales growth as a result of new product launches and economic activity picking up again. With rising demand, the company expects the scooter segment to perform better. With strong demand for TVS two-wheelers across multiple geographies, exports are expected to grow this year. Overall sales for the fiscal year 2021-22 increased by 8% to 33.10 lakh units, up from 30.52 units in the previous fiscal year.

However, the company warned that demand growth is highly dependent on consumer sentiment, which could be “affected by inflation, particularly energy and food-related inflation, as well as any adverse developments in the COVID situation.” Any further price increases as a result of additional commodity cost escalation, according to the company, could have a negative impact on demand.

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