TVS Motor Co, one of the biggest two-wheeler makers in India, today announced that it will invest Rs 1,200 cr in the area of electric vehicles and other futuristic vehicle technologies over the next four years.
It also signed an agreement with the Tamil Nadu state government, as the investment will be done in its home state, which also serves as its manufacturing hub.
The investment will be mainly for the design, development and manufacturing of new products and capacity expansion in the EV space, according to TVS Motor Co.
Electric vehicles are a buzzing area of activity for automakers right now, largely due to concerns around global warming and climate change and the pressure imposed by governments and civil society to bring pollution and emissions under control.
Already, the space has seen the emergence of many new entrants, such as RattanIndia Enterprises, which yesterday announced that it will spread its EV support network to 75 cities in the next 4-5 months, from around 15 at present.
TVS’ rival Hero MotoCorp is also set to unveil a new electric scooter in March next year, and then follow it up with a series of launches, including scooters with removable batteries. That company, however, is likely to give the electric motorcycle space a pass for now.
TVS Motor Co has shown an aptitude to constantly move up in the value chain, having started its two-wheeler journey with pedal-assisted mopeds several decades ago.
It then moved into commuter oriented and low-cost motorcycles around two decades ago, and in recent years, has made a name for itself in the premium segment as well.
The company is also one of the biggest exporters from India, and gets 35-40% of its sales from sales outside India.
It said the time is right for another step-change — this time into “a digital age company with a connected, sustainable and electric brand”.
“The Company is committed to leading the technology development in EV and green fuel and leading the way to the electrification of the two-wheeler segment in the country,” it added.
The decision to retain Tamil Nadu as its base for the EV business is a win for the state government, and Chief Minister MK Stalin was present at the agreement signing venue.