Shares of TVS Motor Company have gained over 10% in the last five trading sessions, while the benchmark BSE Sensex rose 2% on the back of the two-wheeler maker’s big electric vehicles (EV) push.
TVS Motor Company aims to create a “sustained dominant game” in the electric vehicle segment by leveraging various government initiatives such as production linked incentive schemes. As per its annual report for 2021-22, the company has strong plans to up its game in the electric segment.
Earlier this month, a Mint report suggested that TVS Motor Company Limited is in advanced talks to increase Rs 4,000-5,000 crore from private equity firms for the expansion plan of the group’s newly formed electric mobility arm. TVS is looking to increase its revenue share from its EV business to capitalize on the growing demand for electric vehicles globally.
TVS is in advanced discussion with PE players. The money is likely to be raised in the September quarter itself, the report said, adding that the quantum of stake will be decided based on the valuation of the deal for TVS Electric Mobility.
The company has created a dedicated vertical for the EV segment with over 600 engineers and has adopted Centers of Competency (COCs) with an agile work approach. According to the company’s investor presentation, TVS sold over 10,000 EVs during FY22. It has tied up with Tata Power and Jio-BP to set up EV charging infrastructure.
TVS Motors is doubling down on electric vehicles as India shifts its focus to reducing vehicular pollution in cities and dependence on fossil fuels amid rising fuel prices. Two wheeler customers are also increasingly turning to electric scooters.
During the year ended March 2022, the company’s total two-wheeler and three-wheeler sales, including international trade, grew by 8% to 33.10 lakh units as against 30.52 lakh units in FY 2020-21.
TVS Motor manufactures two-wheelers ranging from mopeds to scooters, commuter motorcycles, bikes like the Apache series and RR310. Shares of TVS Motor are up over 31% in the one-year period while Auto stock is up almost 29% so far in 2022 (YTD).
(with inputs from PTI)