Banking on robust demand and upcoming launches, TVS Motor Company is confident of generating profits from the electric vehicle (EV) subsidiary in two years.
Multiple launches of two-wheelers and three-wheelers across segments and with a powertrain range of 5-25 kW will arrive in the market by FY25, a senior executive of TVS Motor Company told an analyst. The company plans to launch not just a range of products but also variants with different price points and features.
Led by Managing Director Sudarshan Venu, TVS had announced the hive-off of its EV division into a subsidiary a few months ago to give it more ‘flexibility and freedom to scale up’.
While the immediate focus of the company is to match supply with demand, it is also rolling out a second version of the iQube after retailing it in 33 cities. The 4.4 kW iQube, the company’s maiden EV, has been in the market for a little over two years.
KN Radhakrishnan, Director and CEO, TVS Motor Company, said, “We may not be still profitable but we are moving towards profitability. The problem today is [to do with] ramp-up and not demand. In the next 24 months you will see EVs becoming really profitable. We will have a complete portfolio of 2-3 three-wheelers in the range of 5-25kw and these will be in the market in 7-8 quarters.”
New platform
Based on the strides made in EV development and the enabling ecosystem, the Chennai-based company has altered its arrangement with German partner BMW. From a product development and manufacturing partner, TVS has moved to take the lead in designing a joint EV product, which will be developed on a new platform and sold jointly in designated markets.
In November last year the company announced an investment of ₹1,200 crore, spread over four years, towards design, development and manufacturing of new products and capacity expansion.
In December last year, TVS and BMW announced an expanded partnership to design and develop a new common platform for EVs. The first of these products will hit the market before the end of FY24.
“We have designed and developed a cool new platform for BMW and for ourselves for the global markets. The entire design responsibility is taken by TVS. Earlier the design was theirs and development and manufacturing were us. But now the design is also ours,” Radhakrishnan said.
TVS will follow Mahindra & Mahindra and Bajaj Auto in launching passenger electric three-wheeler. The company has been developing the product over the last few years and is believed to be nearing the final testing phase. The launch of the electric three-wheeler is likely this financial year.