TVS Motor Company, which has unveiled its flagship electric scooter – TVS X – aims a global play with this high-on-technology product which has seen significant efforts from its in-house R&D teams which have contributed to the development of the electronic and software architecture of the electric scooter.
The company has invested Rs 250 crore into the new X, which is built on a new, ground-up EV platform, that allows it to break away from the barriers of riding dynamics typically associated with traditional, internal-combustion engines (ICE)-powered two-wheelers.
The company is eyeing a niche audience with the X, which is aimed at the Gen-Z buyer in India.
TVS Motor Company is eyeing annual volumes of 30,000 units from the domestic market, and is confident about the product’s potential for global markets.
“We have big plans for Europe, South East Asia, and markets like Latin America as well as UAE with the TVS X, which is an extremely high-technology product, and we want to take it to as many markets as possible,” said Sudarshan Venu, Managing Director, TVS Motor Company.
The company is eyeing a global play with the TVS X in the next financial year – FY25 – when it intends to take its technologically advanced product to several markets, including its existing export destinations – Nepal and Bangladesh.
TVS, which has launched the X in India at Rs 2.5 lakh, ex-showroom, is clearly aiming at a premium positioning of the product, but is confident about its prospects. “We are confident that we are rightly pricing the X, which is targeted at a unique set of customers, and there are plenty of them in the market," said KN Radhakrishnan, CEO, TVS Motor Company.
Bullish about electrification
With a rapid growth in EVs, which clocked 1 million sales in India in CY2022 across vehicle categories, TVS Motor Company is bullish about the future growth anticipated in the EV segment. The company expects two-wheeler EV sales in India to reach 30 percent market penetration by CY25, and aims to double the contribution of EVs to its overall volumes from 20 percent to 40 percent over the next two years. “EVs are very important for our growth and we will aim to work towards bringing more platforms and sustainable products to the market.” said Venu.
In the first seven months of CY23, TVS Motor Company clocked overall EV sales of 87,397 units from its sole e-two-wheeler product – the iQube electric scooter, and has averaged monthly sales of 12,485 units in the calendar so far.
While most of its future investments are skewed towards electrification to come up with future- ready products, the company is also banking on the immense scooterisation potential of India driving growth for the segment. “There is a huge market potential for two-wheelers in India, and while we will see huge growth in EVs over the next two years, we will continue to see sustained
demand in the ICE two-wheeler segment as well” Venu added.
The company which is positioning the X as a flagship e-scooter in its portfolio, and targeting the aspirational and discerning buyer, will also deploy innovative retail strategies to offer a unique buying experience to its customers. The TVS X which will be launched first in Bengaluru, will reach at least 15 cities by end-FY24, with the company also leveraging digital retail to sell the product.