TVS Motor sets sight on Europe for EV debut via small buyouts – EQ Mag
TVS entered the electric two-wheeler market in early 2020 with the iQube scooter just after Bajaj Auto’s debut.
TVS Motor Company is busy making acquisitions, albeit small ones, across Europe with one specific goal in mind – to prepare for an entry into the region through electric vehicles.
With the acquisition of a German engineering and research firm last week, the company has now acquired four automotive companies in Europe in under two years.
While these were not headline-making big-ticket acquisitions, barring one, it will help the Chennai-based company gain entry into the lucrative and high-margin European two-wheeler market with tailor-made products. Though unsuitable for the Indian market, these products will, however, be manufactured in India.
TVS officials say that the acquisitions spread across Germany, the UK and Switzerland were primarily done to understand the consumer habits.
“We acquired European companies like SEMG, EGO and Norton to understand the consumers. We want to know what products they are using, for what purpose they are using them and who is using them,” KN Radhakrishnan, director and CEO, TVS Motor Company, said in a recent interaction with analysts.
TVS entered the electric two-wheeler market in early 2020 with the iQube scooter just after Bajaj Auto’s debut. But it has managed to scale up its business only recently to become one of the largest electric two-wheeler makers in India.
“We want to draw growth from the developed markets such as Europe where there is a huge opportunity in pricing. If I get the opportunity to ramp up, I will put the iQube in Europe today,” Radhakrishnan added.
Three years ago, TVS exported 23% of its production, which it then scaled up to 28%. It is the second-largest exporter of two-wheelers from India after Bajaj Auto, which exports KTM-branded bikes to Europe. Market-wise export volume data of TVS was not immediately available.
According to a research report, the European electric scooter market is expected to grow at a CAGR of 24.2% till 2029 to reach $83.94 billion or 35.53 million units annually. A major part of this growth is expected to come from the 3.2kW to 7.7kW segment, where the TVS iQube is also present.
While the company is yet to start exports of the iQube, TVS is confident of consumer acceptance for its EVs even in the developed markets.
“So far, most of our exports were to the developing markets. The only product going to the developed markets is the one we developed in partnership with BMW. So, we were seeing Europe through the eyes of BMW,” Radhakrishnan added.
German giant BMW, which has been a TVS partner since 2013, has sold more than 125,000 units of BMW-branded motorcycles made at the Chennai plant of TVS, including many across Europe. About 98% of the components of these exported BMW bikes were supplied by Indian companies.
Radhakrishnan also added that TVS has taken the lead in designing and developing the next two-wheeler platform for BMW targeted for global markets and India. TVS’ rivals are not far behind.
Bajaj Auto is working with KTM to produce an electric scooter at the former’s Pune plant which will be exported to Europe. Mahindra & Mahindra-promoted Classic Legends is working on an electric motorcycle to be sold under the BSA brand for the European market.
Source: PTI
