TVS Motor Company has acquired Switzerland’s leading electric bike maker Swiss E-Mobility Group (SEMG) as the leading two and three-wheeler manufacturer continues to pursue its acquisition strategy to emerge as a strong Indian brand in mobility space, including electric mobility, in the European region.

In an all-cash deal, TVS picked up about 75 per cent in SEMG, which has been valued at $100 million. SEMG, which has one-fifth share in the Swiss e-bike market and expected to hit revenue of $100 million this year, is the second acquisition by TVS Motor in the e-bike segment after it picked 80 per cent in Swiss-based e-bike company EGO Movement four months ago. About 2 years ago, it acquired motorcycle brand Norton.

With the latest acquisition, TVS Motor’s e-bike business has touched $100 million in Europe, which is the largest e-bike market in the world growing at more than 18 per cent a year. The global e-bike market is estimated to reach $25 billion in the next five years. Headquartered in Switzerland, which is seen as the hub of future mobility and a leading market with multimodal and intermodal urban transport in Zurich, SEMG appears to give TVS an edge to play across the globe, starting with Europe.

Sudarshan Venu, Joint Managing Director, TVS Motor Company, said: “The acquisition rationale is very compelling. Firstly, it’s in line with our push towards electric personal mobility solutions led by e-bikes and other solutions in the European market. Also, Switzerland has always been known for high precision engineering, quality and technology leadership. SEMG has four main e-bike brands Cilo, Simpel, Allegro, and Zenith and have a very strong Swiss heritage and come in different segments of commuting. SEMG is now focusing on Germany and Switzerland.”

He said TVS Motor management would focus on expanding SEMG’s presence into newer locations of DACH region (Germany, Austria & Switzerland), where e-bikes have been growing at CAGR of 20 per cent, and also into many other markets, including India, as the company sees a potential for all the brands in these regions.

“With prestigious brands like Cilo, Simpel, Allegro, we believe that in India and in many other markets, there’ll be opportunities for these products,” he added.

A recent McKinsey report, quoting media reports, said around the world, it’s likely that 130 million more electric bikes (e-bikes) will hit the road between 2020 and 2023. Design improvements make these bikes more comfortable to ride, commuters are increasingly choosing e-bikes over pedal bikes, and mobility companies are getting in on the action. Industry players are doing their best to attract new types of customers.

TVS Motor’s Europe expansion across traditional premium motorcycle and electric bikes segments in the past two years further strengthens the Chennai-headquartered company’s global play. In the motorcycle segment, the company sells more bikes in the overseas markets, including emerging markets, than in the Indian market. Now, it eyes similar strong play in a developed market like Europe, led by e-bikes.

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