Automotive two-wheeler manufacturer, TVS Motor Company has revealed plans to boost its electric vehicle (EV) capacity to meet its target of 25,000 units by March 2023.
Sales of the e-scooter iQube (electric scooter) are doing well, with October wholesales at about 8,000 units, Director and CEO K.N. Radhakrishnan said in an earnings call.
“Our first challenge is to deliver 10,000 this month and then 18,000 to 25,000 by March. We have the capacity. We are now ramping up,” he said.
According to Radhakrishnan, iQube has about 25,000 bookings open and is being sold across 100 cities and towns in the country.
Asked whether EV would be hived off into a separate subsidiary, the management said that it was exploring all options.
For FY23, the company has set aside a capex of ₹750 crores, predominantly towards EVs.
About ₹320 crores had already been invested during the first half. “EV is an important strategy and in the 12 quarters we will look at a full product pipeline,” Radhakrishnan said.
He also said the company would grow ahead of the industry, both in domestic and international markets, on the back of investments made, especially in the area of marketing coupled with the unveiling of new products.
Stating that there had been a slowdown in the international markets due to macroeconomic factors, he said TVS Motor had moderated dispatches and added that he was expecting improvement in semiconductor supplies in the third quarter.
Asked about the product gaps across the spectrum, he said: “Still there are gaps, there are opportunities, white spaces and TVS will continue to invest because our strength is understanding the customer, customer segments and delivering something which is a super hit product.”
The company raised prices by 1% in the second quarter of FY23 in both domestic and export markets, and 1.1% in October for the domestic market alone, he said.