TVS Motors acquires German Electric Two wheeler Startup

The Chennai based OEM has been in top gear for global expansion and to fulfil the same, it has been at the forefront of forging partnerships and collaborations. The brand made its intent evident with the move of collaborating with BMW Motorrad and acquiring Norton motorcycle to onboard the much-required expertise & experience of the global consumer taste.


The acquisition of the startup named Vermögensverwaltungs through its wholly owned subsidiary  TVS Motor (Singapore) will provide TVS Motors with EV-related technology and related assets in Germany including engineering, sales, R&D unit and service support. Under the listing obligation and disclosure provision, the manufacturer made the announcement about the deal to SEBI (Security & Exchange Board of India). 

Push for its EV ecosystem

The efforts of TVS Motors are bearing fruit as the company clocked sales of 10,000+ EV scooters in 2021-22. The company wants to continue riding the growth wave and has created a dedicated vertical for the EV segment named Centres of competency (COCs) being operated by 600 engineers who are working on multiple EV concepts.

TVS has also renamed the acquired entity Celerity Motors GmbH and inaugurated a state-of-the-art TVS Experience Center in Singapore. The anticipated aim for this move is the establishment of a firm ground for global expansion.

Banking on robust demand and upcoming launches, ultimately making the EV portfolio bigger, the company expects its EV branch to be profitable in the next 2 years. Speaking about the direction being taken by TVS Motors, Managing Director Sudharshan Venu said that the company has a future intent to develop separate divisions to administer more freedom and flexibility that is necessary for future expansion.

Future Narrative & Strategic Planning

To date, the establishment of the EV portfolio has been a success, and the response of TVS iQube has been positive with the market demanding more. Currently, the focus is to match the supply with demand despite having a healthy order backlog.

 


Addressing an online media house, Mr. Sudharshan Venu revealed that the company expects to achieve 35% three wheeler market and 30% EV two-wheeler market by 2025. Besides, no official statement from the company in this regard, according to the reports – TVS in collaboration with BMW is developing a bunch of new platforms for future technologies (Specifically EVs); the first of these products will hit the market by the end of FY24, with a total of 6 EV specific platforms in the development stage.

 

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