TVS Motor managing director Sudarshan Venu says the company will invest in compressed natural gas (CNG)-powered two-wheelers even as it continues its focus on electric vehicles.
"There is a room for CNG as well. We have seen the recent launch from Bajaj on the CNG two-wheeler. I am sure more will come and we will invest in that as well," Venu tells Fortune India in an interview.
TVS already makes CNG-powered autorickshaws.
Bajaj Auto, which launched the world’s first CNG motorcycle ‘Freedom’ in July, has sold 8,740 CNG motorbikes so far. As per Vahan data, 4,110 units of Bajaj’s CNG motorcycle were registered in August and 4,358 units have already been registered in the first 26 days of September.
TVS Motor is India’s second-largest electric scooter maker after Ola Electric. It sold 1.83 lakh iQube e-scooters in FY24, up 123% compared with 82,108 units sold in the previous fiscal.
When asked if the company will launch electric motorcycles in the future, Venu says, “Electric is very important, and form factors and products with electric powertrains will come in all categories whether it is scooters, motorcycles and three-wheelers.”
“We will make electric motorcycles on our own. There will be an electric Norton as well. We will have the complete product range from e-bikes, electric scooters, motorcycles and three-wheelers,” says Venu.
Electrification is a huge investment area for TVS, says Venu. The automaker makes EV motors, controllers and software in-house.
On why legacy automakers have been slow to launch electric motorcycles even though start-ups have entered the fray, Venu says scooters have been an obvious choice for companies to invest in because that's what consumers want but electric motorcycles will come. “It’s is still the early days for EVs at 5% industry volumes. Going forward, it will come. It’s a question of time,” he says.
TVS Motor plans to launch one more electric scooter this year. “Electrification is at the front and centre and the core of our investment and pivot towards the future. You have seen iQube and TVS X. We will launch one more scooter very soon. We also have an electric three-wheeler, and an electric three-wheeler cargo coming out this year,” says Venu.
In May, TVS Motor introduced a new variant of its top-selling electric scooter iQube with prices starting from ₹94,999 (ex-showroom).
There will be multiple price points in the EV market with different ranges, Venu had told Fortune India earlier. “Some customers want entry-level, some want delivery vehicles with higher range requirements. A motorcycle customer who may want to go for a sporty ride may want something else. Some would want more power. There will be multiple segments in the market,” he says.
Venu expects electric vehicles to contribute 20-25% to the total volumes of the company in the next three years from 5% currently. The government is targeting 80% of all two-wheeler sales to be electric by the end of the decade.
