TVS plans massive Rs 1,000 crore EV push: To expand electric vehicle portfolio

Providing a further boost to its transition to electric vehicles (EV), TVS Motor Company has set aside Rs 1,000 crore in fresh investments for the current financial year, an Economic Times report states. It further adds that a large part of this investment will be pushed into the expansion of capacity and electric product portfolio for the company.

The Chennai-based manufacturer of two and three-wheelers will be investing such an amount for the second consecutive year, doubling its EV production capacity to 25,000 units a month by the end of 2022 and taking it up to 50,000 units per month by 2023. This would bring TVS' annual EV production capacity to five-six lakh units per annum.

TVS Motor Company expects EVs to account for 30 percent of the scooter market and 35 percent of the three-wheeler market by 2025 and the fresh investment is intended to grasp this opportunity, Sudarshan Venu, MD, TVS Motor Company, told ET.

“I think the electric vehicles are at the front end of our investment, there is a huge focus and higher mix of our investment towards EVs in the coming years. A significant part of Rs 1,000 crore investment announced has been substantially invested, we will continue to invest at a similar pace in the coming years,” added Venu.

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A major investment of Rs 1,100 has been made through TVS Singapore, of which Rs 750 crore was into SEMG, Rs 130 crore in EGO Corporation and the rest in Norton Motorcycle. Also, in December 2021, TVS Motor Company announced an investment in the electric bike maker Ultraviolette Automotive which aims to deliver high-performance electric motorcycles for domestic and international markets.

Prior to last year's Rs 1,000 crore investment, TVS announced that a new subsidiary would be set up for its electric vehicle segment. At present, TVS has one product in the category, iQube. Launched in January 2020, TVS iQube is currently available in 33 cities across the country.

There is one more EV lined up for the second half of the year, the MD of TVS assured, whilst reiterating that there is an increased focus on EVs, TVS is not losing sight of the mainstream ICE market.
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