Domestic electric two wheeler industry to keep growing at fast clip: TVS Motor

New Delhi: Domestic electric two-wheeler industry will continue to grow at a robust pace with active policy support from central and state governments while also emerging as a major hub for exports, according to TVS Motor Company.

The company on its part would expand its electric portfolio to cater to different sets of customers. It currently sells electric two-wheelers under the iQUBE brand.

"The EV industry will continue to grow rapidly as the consumer interest is buttressed with active policy support from the Central and State Governments through PLI, FAME II and State-specific support policies," TVS Motor Company stated in its Annual Report for 2022-23.

Continued support will ensure a smooth lift-off for the industry volumes, it added.

"Like in ICE (internal combustion engine) two-wheelers, India will emerge as a major hub for EV two-wheeler exports in addition to the large domestic market," TVS Motor noted.

Interestingly, the government has reduced the subsidy provided under FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme applicable on electric two-wheelers registered on or after June 1, 2023.

For electric two-wheelers, the demand incentive is now Rs 10,000 per kWh.

Besides, the cap on incentives for electric two-wheelers is now capped at 15 per cent of the ex-factory price of vehicles from 40 per cent earlier.

Outlining its efforts in the EV space, TVS Motor said the company will deliver the "power of choice" as it enhances its offerings to provide relevant options to new consumer cohorts.

"In doing so, expand the portfolio to new variants within iQUBE and introduce new brands," it added. This portfolio expansion will also see the introduction of new innovative features and technology, TVS Motor said.

The choice will be made available in new geographies within India, beyond the current 130 towns, and outside India as the company's EV exports kick in, it stated.

All of this, would also see a steady increase in the ecosystem presence and the 2,000 plus public charging options grow further, it added "In addition, with the strategic association with BMW, the company is involved in joint design and development of urban EV options for the global markets," TVS Motor said.

The penetration of EV two-wheelers for the 2022-23 fiscal in the domestic market stood at 4.7 per cent, it said.

This accelerated pace of EV adoption has been made possible by the FAME II and PLI support from the Central Government, it stated. TVS retailed 0.91 lakh units of vehicles for the year with a 10x growth, it added.