TVS Motor Company plans to widen the sales of its only electric two-wheeler, iQube, to more than 20 cities and expand its electric vehicle (EV) portfolio with higher investments this year, a top company official said.
According to company officials, a substantial portion of the capital expenditure (capex) of Rs 600 crore lined up for the year will be routed to EVs and emerging technologies.
The all-electric TVS iQube, which was launched in January 2020, was sold exclusively in Bengaluru before Delhi was added to the list in February 2021.
K N Radhakrishnan, director and CEO, TVS Motor Company, said: “The footprint will be expanded to more than 20 cities. The portfolio will be expanded with newer launches. The company is substantially investing in EVs and other emerging technologies.”
He further stated that capacity creation is not a challenge for the company as the supply chain is responding very fast.
The Chennai-based company clocks 250-300 units of iQube sales every month in Bengaluru and claims to have a ‘good’ pipeline of orders. Priced at Rs 1,20,000 in Bengaluru, the 80 km per charge iQube is TVS’s first experiment in the EV space.
“This year, the capex will be between Rs 500 and Rs 600 crore. We will closely monitor the Q1 situation and take a call. But all these investments will be in EVs and other emerging technologies and new products. Separate investments in TVS Credit Service will be around Rs 150 crore and other areas will be Rs 150 crore,” Radhakrishnan added.
The pandemic impacted demand for electric two-wheelers in FY21. According to data provided by the Society of Manufacturers of Electric Vehicles (SMEV), the industry saw sales of 1,43,837 units during FY21, a fall of 6 percent compared to the 1,52,000 sold in FY20. The FY21 volumes included 40,836 high-speed and 1,03,000 low-speed variants.
The electric two-wheeler segment is generating sizeable interest in the industry. The country’s largest two-wheeler maker, Hero MotoCorp, announced a tie-up with Taiwan’s Gogoro for the development and sale of electric two-wheelers.
Ola Electric has plans to start selling its indigenously developed electric scooter from July while Bajaj Auto
is planning to extend the sales of the Chetak electric scooter to two more cities after starting sales in Pune and Bengaluru last year.