According to sources familiar with the company's plans, the automaker is planning to launch an electric mini truck, an electric bicycle.
16 Jan 2025 | 7129 Views | By Ketan Thakkar, Kiran Murali
In a bid to become an end-to-end player in the burgeoning electric vehicle market, TVS Motor Company, South India's leading automaker, plans to enter segments ranging from electric bicycles to mini trucks.
According to sources familiar with the company's plans, TVS Motor is considering localizing the e-bike from its ...
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In a bid to become an end-to-end player in the burgeoning electric vehicle market, TVS Motor Company, South India's leading automaker, plans to enter segments ranging from electric bicycles to mini trucks.
According to sources familiar with the company's plans, TVS Motor is considering localizing the e-bike from its European subsidiary, SEMG, at a location in North India. The company also plans to launch ground-up electric three-wheelers meant for public and cargo transport in 2025 at its factory in Hosur, followed by an electric small commercial vehicle in 2026-27, which may require an all-new manufacturing line.
Sources say a project codenamed N606, envisioned as a small mini truck to challenge Tata Motors' Electric Ace with a payload of less than 1 tonne, is currently in the conceptualisation stage. The project could potentially hit the road in 2026-2027. The company anticipates an annual sales potential of 8,000 to 10,000 units.
However, the company is at an advanced stage on the three-wheeler front. A passenger three-wheeler codenamed N603 and a cargo three-wheeler codenamed N604 are expected to hit the roads in 2025. The company may unveil these models at the upcoming Bharat Mobility Show. Initially, TVS Motor Company expects combined sales (cargo and passenger) of about 1,000 units per month, with the potential to scale up based on market demand.
The company did not respond to Autocar Professional’s request for comments on the new product plans.
Autocar Professional recently reported that India's second-largest passenger vehicle maker, Hyundai Motor India, is in talks with TVS Motor for the joint development of an electric three-wheeler. Under a potential contract manufacturing agreement, TVS would handle local production while Hyundai would be responsible for engineering and design.
TVS Motor is betting on investments in electric vehicle technology and geographical expansion to grow its revenue in the future. The company has allocated a capital expenditure of Rs 1,000 crore for the current financial year, with approximately 70% earmarked for product development and building digital capabilities.
Last year, the automaker's Chairman, Ralf Dieter Speth, stated that TVS Motor is transforming into a high-tech global mobility company, with electric vehicles as the fulcrum of its future growth. "At TVS Motor, we are gearing up for exciting times ahead as we transition to a high-tech, global, and smart mobility company. Our focus on electric vehicles as one of our future growth enablers fits perfectly with our 2030 vision."
India’s electric vehicle retail sales increased by around 27% year over year in the calendar year 2024 to 19.5 lakh units. Two- and three-wheelers accounted for close to 95% of the sales.
While TVS Motor has captured a decent market share in the electric two-wheeler market with its iQube and X models, it has yet to capitalize on the electric three-wheeler space. The demonstrated profitability of electric three-wheelers in both cargo and passenger segments positions the sector for significantly accelerated adoption.
The surging demand for urban mobility, driven by the growth of taxi and delivery services, is boosting sales of electric vehicles in the three-wheeler space. Currently, this segment is dominated by Mahindra, Bajaj, Piaggio, and startups such as YC Electric and Saera Electric. TVS Motor, which currently offers ICE passenger and cargo three-wheelers under the TVS King range, expects to debut its first electric three-wheeler this year.
The growing demand for low-cost delivery services, coupled with the significance of last-mile connectivity, is driving demand for not just electric three-wheelers but also for small electric mini trucks. Mini trucks and small commercial vehicles under the 5-ton category are seen as a sweet spot for early electrification among commercial vehicles.
TVS Motor's new electric small mini truck will likely compete with the Tata ACE and Mahindra Zeo in the electric mini truck category, with a carrying capacity of up to 1 tonne.
Meanwhile, electric bicycles are gaining popularity among health- and environment-conscious individuals in tier 1 cities like Bangalore, Delhi, and Mumbai. However, unlike many Western markets where bicycles are a popular mode of transportation and recreation, the Indian market has yet to witness large-scale adoption, mainly due to a lack of proper infrastructure such as dedicated cycle lanes.