TVS Electric Vehicles: TVS Motor Company has made significant strides in the electric two-wheeler (e2W) market, solidifying its position as a key player in India’s rapidly growing EV sector. Recent data from the Vahan portal reveals that TVS has reclaimed the second spot in the e2W market, surpassing Bajaj Auto’s Chetak in October 2024.
Key Highlights:
- TVS sold nearly 25,000 units of iQube in October 2024
- TVS captured approximately 22% market share in October
- The company has shown consistent growth, doubling its market share from 10% in Q2 FY ’24 to 19% in Q2 FY ’25
Product Strategy
TVS’s success in the e2W market can be attributed to its consumer-centric approach and diverse product lineup. The company has focused on offering multiple options to cater to various customer needs:
- iQube Portfolio: TVS has introduced new variants of the iQube with three battery options:
- 2.2 kilowatts
- 3.4 kilowatts
- 5.1 kilowatts
- iQube 09: A new variant with a single battery pack, offered at a lower price point
- Upcoming Sub-1 Lakh Rupee Product: Rumors suggest TVS is planning to launch a more affordable e-scooter, potentially priced below Rs. 1 lakh, to compete in the entry-level segment
Future Plans
TVS is not resting on its laurels and has ambitious plans for the future:
- New Electric Scooter: TVS is planning to launch another electric scooter by March 2025, as confirmed by TVS Motor Director and CEO KN Radhakrishnan during an investor’s meeting
- Expanding Product Range: The company aims to address different customer segments with new product launches
- Market Expansion: TVS is taking a calibrated approach to expand across the country, focusing on building EV infrastructure and after-sales services
Competitive Landscape
The e2W market in India is becoming increasingly competitive:
- Ola Electric remains the market leader with over 30% market share
- Bajaj Auto has shown significant growth, briefly overtaking TVS for the second spot in September 2024
- Ather Energy and Hero MotoCorp are also making their presence felt in the market
TVS’s Strategic Approach
TVS’s success can be attributed to several factors:
- Customer-Centric Focus: Prioritizing customer needs and preferences in product development
- Brand Building: Emphasis on creating a strong brand identity in the EV space
- Calibrated Expansion: Careful approach to market expansion and infrastructure development
- Product Differentiation: Offering multiple options at different price points instead of competing solely on discounts
- Feature-Rich Products: The iQube range offers advanced features like full LED lighting, TFT instrument console, and connected features
Challenges and Opportunities
While TVS has shown impressive growth, the e2W market still presents challenges:
- Low EV Penetration: Electric two-wheeler penetration is still in single digits, presenting significant growth potential
- Price Sensitivity: The market remains highly price-sensitive, especially in the entry-level segment
- Infrastructure Development: Continued focus on charging infrastructure and after-sales service is crucial
Future Outlook
The future looks promising for TVS in the e2W market:
- Market Growth: With increasing awareness and government support, the e2W market is expected to grow significantly
- Product Innovation: Continued focus on new product development and technological advancements
- Expanding Market Share: TVS aims to further increase its market share through strategic product launches and market expansion
Key Information Table
| Aspect | Details |
|---|---|
| Current Market Position | 2nd in e2W market (as of October 2024) |
| Market Share | Approximately 22% (October 2024) |
| Flagship EV Model | iQube |
| iQube Variants | 3 (with different battery capacities) |
| Price Range (iQube) | Rs. 94,999 to Rs. 1.85 lakh (ex-showroom, Delhi) |
| Upcoming Launch | New electric scooter (by March 2025) |
| Key Features (iQube) | Full LED lighting, TFT console, Bluetooth connectivity, Navigation |
| Main Competitors | Ola Electric, Bajaj Auto, Ather Energy |
| Future Strategy | Launch of more affordable models, market expansion, infrastructure development |
In conclusion, TVS Motor Company has established itself as a formidable player in India’s electric two-wheeler market. With its customer-centric approach, diverse product portfolio, and strategic expansion plans, TVS is well-positioned to capitalize on the growing demand for electric vehicles in India. As the market continues to evolve, TVS’s focus on innovation and brand building will be crucial in maintaining and potentially improving its market position.