AutoBiz: TVS to Establish New Separate Subsidiary for EV Business
To bolster the company’s EV operations, TVS has announced the formation of a new subsidiary that will execute all the EV-related activities of the company
TVS has announced the formation of a new subsidiary that will execute all the EV-related activities of the company. In 2021, this is not the first step TVS has made to bolster its EV operations. A few months ago, the Chennai-based company purchased majority stakes in EGO Movement; an e-bike manufacturing company based in Switzerland. Together, the two companies are likely to work on e-bikes. Not to forget, EGO Movement’s network in the European nations will help TVS create a firm presence of itself in those regions.
That is not all because a few days ago, TVS also entered a strategic partnership with Tata Power and together, the two companies are ready to establish an electric vehicle infrastructure in the country. The new move from TVS is not shocking given how the company is dedicated towards evolving India into a successful and complete electric vehicle nation.
The decision has been taken by TVS after the company reported a revenue earning of INR 5,619 crore in the second quarter of FY22; the company’s highest-ever. Not to forget, TVS also reported its highest-ever EBITDA earning of 562 crore. To set up the new subsidiary, TVS is investing a massive amount of INR 1,000 crore.
Commenting on the new move, KN Radhakrishnan, the Director and CEO of TVS Motor, said, “This will be in addition to the iQube. We will see new EV products in the forthcoming quarters. This subsidiary will give us the flexibility and freedom to scale up the business. We will look at global markets, developed and developing, under this strategy,” as quoted by Express Drive.
As of now, the company’s only electric offering is the TVS iQube scooter, which is available in several cities, but the company is doing all in its power to make it accessible in every Indian state. In addition, the company is also working hard to increase the monthly capacity of the iQube to 10,000 units.
Last but not least, apart from the new subsidiary, TVS has invested huge amounts in several other projects. Gopala Desikan, the CFO of TVS Motor, said, “We have invested Rs 500 crore in the first half and there will be another Rs 250-300 crore in the second half. The investments will be made in EVs and other products. So far, we have invested Rs 140 crore in EGO (movement), Rs 100 crore in TVS Credit and Rs 120 crore in Norton.”