TVS Motor is planning to raise Rs 5,000 crore to grow its electric mobility division
By exploiting numerous government efforts such as the production-linked incentive scheme, the two-wheeler company hopes to establish a "sustainable dominant play" in the electric vehicle (EV) category.
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According to Mint, TVS Motor Company is in advanced talks with private equity companies to raise Rs 4,000-5,000 crore to fund the expansion of the group's new electric mobility unit.
By exploiting numerous government initiatives like as the production-linked incentive (PLI) scheme and others, the two-wheeler company hopes to establish a "sustained dominant play" in the electric vehicle (EV) category.
According to the company's annual report for 2021-22, it has ambitious intentions to expand its electric business. According to Mint, TVS wants to raise the share of revenue from its electric vehicle business, capitalising on the growing demand for EVs around the world.
With over 600 engineers, the corporation has built an EV vertical.
TVS's latest capital-raising strategy also aims to strengthen its relationship with BMW Motorrad in the development of new platforms and future technologies, such as electric vehicles. In FY22, the company held a 19% market share in the high-speed electric scooter segment, selling over 10,000 EVs.
According to Mint, the company has partnered with Tata Power and Jio-BP to build EV charging infrastructure. TVS could use the funds raised from fundraising to build new EV and battery manufacturing facilities.
