TVS Motor Company Ltd gears up for expansion in its EV (electric vehicle) business: to ramp up monthly iQube capacity to 25,000 units from next month, to double the number of outlets to sell its electric scooter iQube during this fiscal, and to target more overseas markets for export of iQube as it has just begun export of its electric scooter to Nepal.

The management sees bright opportunities for E2W growth amid the FAME II subsidy cut. They asserted that the demand for electric scooters would come back gradually, and the second half of this fiscal would see sales returning to normal levels.

“While there was some temporary setback in electric 2W sales after the cut in subsidy, the demand is coming back again, and we expect the electric 2W penetration to increase to 20–25 per cent in the next three years,” Sudarshan Venu, Managing Director, TVS Motor Company, said while responding to shareholders’ queries during the annual general meeting of the company.

He said there would be growth both in the ICE and electric scooter segments, and the company was making available adequate charging stations for the iQube through its partnerships with charging operators. There are more than 2,000 charging stations available for iQube in the country.

Discussing the subsidy cut and demand for E2W during the Q1FY14 earnings call, KN Radhakrishnan, Director and CEO, TVS Motor Company, said: We had some challenges because of the AIS battery norms transition and later due to the subsidy cut. Now, slowly, bookings have picked up.

“Actually, price is just one element in electric 2Ws. The product is the key, as is the package that comes with it. Hence, TVS Motor is returning to a healthy booking pipeline for iQube despite the subsidy cut,” he said, adding that the company is ramping up monthly production capacity and is confident of reaching 25,000 units in August.

He also said the company would increase the touch points to sell iQube. TVS Motor has added 74 touchpoints to sell iQube, which is now sold through 309 outlets and will grow to 600 touchpoints by the end of this fiscal year.

New EV launches

The company is preparing to launch new electric vehicles soon. “There will be a new launch in this quarter. Our electric 3W is getting ready and will be unveiled in the coming quarters,” he added.

Meanwhile, During Q1 of this fiscal, it shipped iQubes to Nepal, the company’s first export destination. “Retailing has begun, and the initial feedback has been positive,” Radhakrishnan said, adding, “We will ship iQube to many more overseas markets this year.

He also said that BMW’s recently unveiled electric two-wheeler CE02 was designed, developed, and manufactured jointly by TVS Motor and BMW for worldwide sales.

Discussing the company’s growth and outlook at the AGM, Ralf Dieter Speth, Chairman of TVS, said the company has set up a dedicated EV team to rapidly transform into electrification, ramp up the direct and indirect product pipelines, and also offer India-built and tested reliable products to global markets.

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