TVS Motor shares rally of 10% in 5 trading sessions. Here’s why | Tech Reddy

TVS Motor Company aims to build a “super game” in the electric vehicle sector by supporting various government initiatives such as the product-related incentive program, among others. According to its annual report 2021-22, the company has strong plans to up its game in the electronics sector.

Earlier this month, a Mint report suggested that TVS Motor Co ₹4,000-5,000 crore from private equity firms to support the expansion plan of the group’s new electric mobility arm. TVS is seeking to increase the share of revenue from its EV business, capitalizing on the growing demand for electric vehicles worldwide.

TVS is in advanced talks with PE players. The amount is likely to be raised in the September quarter itself, the report said, adding that the size of the stake will be decided depending on the value of the TVS Electric Mobility deal.

The company has created a dedicated vertical for the EV sector with more than 600 engineers and has adopted Centers of Competence (COCs) and an agile way of working. TVS sold more than 10,000 electric vehicles during FY22, according to the company’s investor presentation. It has partnered with Tata Power and Jio-BP to set up EV charging infrastructure.

TVS Motors is doubling down on electric vehicles as India sharpens its focus on reducing urban traffic pollution and reducing dependence on fossil fuels amid rising fuel prices. Two-wheeler customers are also switching to electric scooters.

During the year ended March 2022, the company’s total two- and three-wheeler sales, including international business, grew by 8% to 33.10 lakh units against 30.52 lakh units in 2020-21.

TVS Motor manufactures 2-wheelers, starting from mopeds, to scooters, commuter motorcycles, to bikes like the Apache series and the RR310. Shares of TVS Motor are up more than 31% year-to-date while the auto stock has gained about 29% year-to-date (YTD).

(With inputs from PTI)