Shares of leading two-wheeler manufacturer TVS Motor climbed 2.88 percent to trade at Rs 1,109.5 around 11am on Tuesday, following reports of a major investment in its electric vehicle (EV) arm, TVS Electric Mobility.
According to sources familiar with the matter, global investment firms Goldman Sachs, Carlyle, and Abu Dhabi Investment Authority (ADIA) are considering an investment of $300-350 million in TVS Electric Mobility. If the deal goes through, the investment would value the company at $3-3.5 billion, making it the second most valuable 2W EV company in India.
TVS Electric Mobility was established as a subsidiary of TVS Motors in December 2021 with a plan to invest Rs 1,000 crore in the EV space over the next few years. The company's aim is to become a major player in the 2W EV market in India, and this investment could be a significant step towards achieving that goal.
TVS Motor is making strides in the 2W EV market, having launched its iQube electric scooter in India in 2020. The sale of this model has been growing at a healthy pace, with volumes growing in high double-digits for the past three quarters.
In Q3FY23, 29,230 units of iQube were sold, which was an 87 percent increase over the previous July-September quarter’s 15,645 units, which again was a 79 percent QoQ increase from April-June quarter’s 8,724 units.
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The investment would also be a significant boost to India's nascent EV industry, which sees a surge in demand due to rising fuel prices and increasing awareness about the benefits of electric vehicles.
TVS Motor has been working on EV technology for some time and has a tie-up with BMW to develop vehicles on a common platform, with a focus on EV. This partnership could help the company stay at the forefront of the rapidly evolving EV market.
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