Despite slowing electric two-wheeler sales, TVS Motors Company is making a substantial bet on EVs

The month of June can be seen as an eye-opener for EV manufacturers who saw a sharp drop in sales after the government reduced the subsidy offered under the FAME 2 scheme. Major brands such as Ola Electric and Ather Energy, among legacy brands like Bajaj Auto, saw the demand drop for electric models by up to 70.51 percent. Among them was TVS Motor Company which saw a fall of 61.80 percent in its EV demand, however, the management seems to be hopeful for brighter days. Despite the reduction in FAME 2 subsidy, TVS Motor Company is gearing up to expand its EV business further, as discussed in the automaker’s 31st annual general meeting (AGM). Currently, TVS only has the iQube electric scooter on sale, for which production will reportedly be increased to 25,000 units from August 2023 but that’s not where the brand is going to stop.

In the AGM, TVS management confirmed that the company is currently lining up new petrol and EV products and will also be expanding its electric portfolio into the three-wheeler. Moreover, we could see the automaker unveil an all-new electric two-wheeler or electric three-wheeler by the end of August 2023. Then there are the significant acquisitions that the company has made in the e-mobility space, such as its 70 percent stake in EBCO Limited, a British e-bike company and the 19.60 percent stake in ION Mobility Pte Limited, a tech and automotive OEM from Singapore. These steps further confirm the company’s commitment towards electrification. In terms of EV demand in India post FAME 2 revision, the company believes that while the initial setback is considerable, the demand has already started picking back up and would increase to pre-June levels in the second half of FY 2023.

At the 31st AGM, Prof. Sir Ralf Dieter Speth, Chairman, TVS Motor Company Limited, confirmed that TVS has sold 9.53 lakh two-wheelers and three-wheelers, with the sale of iQube electric scooters increasing fourfold to 39,000 units. To support the soon to increase supply of iQube scooters and the subsequent electric models, TVS is also working on increasing its sales and service network. The company currently sells its electric offering through 309 outlets and this will grow to 600 touchpoints by the end of this fiscal year.