TVS Eyes For E-mobility Supremacy In Europe

The electric mobility space is witnessing a renewed action, and in a bid to capture this fast-growing segment, TVS has acquired a 75 percent stake in what's touted to be Switzerland’s largest electric bicycle conglomerate, Swiss E-Mobility Group AG (SEMG). The remaining 25 percent stake will be acquired at the end of the year. This is TVS’ second e-bike acquisition after acquiring a majority stake in EGO Movement, another Swiss e-bike company, in September 2021.

With a 100 million USD revenue, SEMG houses four brands: Cilo, Simpel, Allegro, and Zenith, and the conglomerate has presence in Germany, Austria, and Switzerland. SEMG has 31 physical stores in Europe, along with an e-commerce platform and two online platforms. The company retails a variety of e-bikes ranging from terrain tamers to city e-bicycles. What this acquisition could mean for TVS is that it will be able to have greater control over SEMG’s distribution network in Europe, in addition to giving the bikemaker more exposure globally.

TVS recently extended its partnership with BMW Motorrad in December 2021, and as a part of this arrangement, the companies could jointly develop electric products in the future. Moreover, in July 2021, TVS also revealed its plans of investing over Rs 1,000 crore in creating a new wholly-owned subsidiary dedicated for EVs, and the Hosur-based company revealed its plans of launching as many as six EVs in the next 24 months.

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Eventually, some of these upcoming EVs will make their way to Europe, and this is where TVS’ newest acquisition comes into play. Going electric is critical for last-mile connectivity, so the company will be able to make use of the dealership presence for its upcoming EVs, which could later even include electric motorcycles and electric scooters. These touchpoints will also be of great help in setting up charging infrastructure or swap stations if need be.

Sudarshan Venu, Joint Managing Director, TVS Motor Company, revealed that key e-bike brands (from the conglomerate) will be launched in India in the second half of this year. Since they are aspirational products, expect the pricing to be a bit on the premium side.

It’s evident that TVS’ acquisition of such e-bike companies is also more of a long-term strategy that helps the company build a stronger base in the burgeoning electric mobility space as a whole rather than simply focussing solely on e-motorcycles or e-scooters.