The domestic electric two-wheeler industry is set to maintain a strong growth trajectory, supported by favorable policies from central and state governments and the potential for significant exports, as per TVS Motor Company. The company plans to expand its electric vehicle (EV) portfolio to cater to diverse customer segments, building upon its current offering of electric two-wheelers under the iQUBE brand.
TVS Motor Company’s Annual Report for 2022-23 highlights the continuous growth of the EV industry, fueled by consumer interest and active policy support through initiatives like the Production-Linked Incentive (PLI) scheme, FAME II, and state-specific policies. This sustained support is expected to facilitate the industry’s expansion.
India, similar to the internal combustion engine (ICE) two-wheeler market, is anticipated to become a significant hub for EV two-wheeler exports alongside its large domestic market, according to TVS Motor.
Notably, the government has recently reduced subsidies under the FAME-II scheme for electric two-wheelers registered from June 1, 2023. Additionally, the incentives are now capped at 15% of the ex-factory price, down from the previous 40% limit.
TVS Motor outlines its commitment to offering a wide range of choices within its EV portfolio, expanding the iQUBE brand and introducing new brands to cater to different consumer cohorts. This expansion will incorporate innovative features and technologies.
The company plans to extend its market presence to new geographies within India, beyond the current 130 towns, and to international markets as its EV exports gain momentum. TVS Motor also mentions its collaboration with BMW for joint design and development of urban EV options targeting global markets.
The report indicates that the penetration of EV two-wheelers in the domestic market for the fiscal year 2022-23 reached 4.7%. This accelerated adoption is attributed to the support of FAME II and the PLI scheme provided by the Central Government. TVS Motor achieved significant growth, retailing 0.91 lakh units of vehicles during the year.
