TVS Motor Company aims to scale up its role in the electric vehicle (EV) segment by leveraging various government initiatives like production-linked incentive (PLI) scheme and FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). With increased growth expected in the EV segment, TVS intends to focus on new EV products, both for the domestic market as well as overseas markets, the company’s annual report said, outlining the Indian two-wheeler manufacturer’s future plans, both in the EV segment as well as traditional petrol-powered two-wheelers.
“The Company has setup a vertical to rapidly ramp up its product pipeline and presence globally. The PLI and FAME II initiatives of the government will be fully leveraged by the Company and strategically build a sustained dominant play in this segment. The industry is slated to grow rapidly and the Company has robust plans for this segment,” TVS Motor Company noted in its annual report for 2021-22.
“The Company continued its expansion in its EV footprint and the buildout of the infrastructure as this category gains momentum. The Company has created a dedicated vertical with over 600 engineers and adopted the Centres of Competency (COCs) with agile working approach. The EV 2W industry predominantly operates in the scooter form, and today is ~10% of the total scooter Industry (ICE + EV). TVS has sold more than 10,000 EV vehicles in 2021-22 with a geographical presence equivalent to 50%+ of the EV industry,” it added.
Touching upon TVS Motor Company’s alliance with BMW Motorrad, under which TVS manufactures a common platform for both BMW bikes, the BMW G 310 R and BMW G 310 GS, as well as TVS Apache RR 310, TVS said that the expansion of this association will go on to include new platforms and EVs.
“The Company expanded its strategic association with BMW. Through the association, the Company is targeting joint development of new platforms and future technologies, including urban-centric electric vehicles. The products will be targeted for the global urban centric markets and the ‘cool’ next gen consumer,” TVS added.
The company added that it expects to outperform the industry in sales growth on the back of new product launches as well as economic activity gathering pace again, despite global challenges and a tough business environment. The company expects the scooter segment’s performance to pick up with increasing demand. Exports are also likely to witness growth during the year, with strong demand for TVS two-wheelers across diverse geographies. The company’s overall sales in FY 2021-22 grew by 8 per cent to 33.10 lakh units as against 30.52 units in thew FY 2020-21 fiscal.
The company however cautioned that demand growth is highly dependent on consumer sentiment, and improvement in sentiment could be “impacted by inflation, especially energy and food led, and any adverse development in the COVID situation.” Any further price increases due to additional commodity cost escalation could also adversely impact demand, the company added.