TVS Motor Company Acquires Swiss E-Mobility Group
Modified On Jan 28, 2022 01:53 PM By Manaal Mahatme for TVS iQube
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The Hosur-based bikemaker has brought 75 percent stake in the conglomerate
TVS Motor Company has acquired a majority 75 percent stake in Swiss E-Mobility Group AG (SEMG), a leading e-bike conglomerate in Switzerland while the remaining 25 percent would be acquired next year. This is the second e-bike company under TVS, after acquiring Ego Movement, another Swiss e-mobility company, in September 2021.
SEMG has presence in the DACH region (Germany, Austria, and Switzerland), and has brands like Allegro, Zenith, Simpel, Cilo and ELFEi, building a variety of e-bikes including hardcore MTBs and classics. By buying the majority share in this company, TVS gains access to SEMG-owned two online platforms and 31 physical stores. TVS intends to use the omni-channel 'M-Way' dealership network and expand it to other European markets, as well as markets where TVS has already established itself. This acquisition not only strengthen's TVS' global presence but also establishes it in last-mile mobility solution.
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So, why is a bikemaker suddenly investing in e-bikes? Well, this could very well be the first step towards establishing itself in the electric mobility business in the European market. Not only does TVS now have two e-bike companies under its umbrella, but with the BMW Motorrad-TVS merger now working on new EVs, the Indian bikemaker will cater to a wider audience in Europe.
Furthermore, with a new sub-brand being set up by TVS for electric vehicles, we can expect the new products to be introduced in the European market under this brand. And now with four allies in Europe, establishing a strong dealership network would be a tad easy for the Indian company. This is more of a long-term strategic business move that will help TVS build a strong base in electric mobility as a whole. Later, it will help TVS to make use of the dealership network for its future electric two-wheelers, including electric bikes and electric scooters.
So, will we see TVS step into the e-bike business in India? Yes, TVS has confirmed that the e-bikes from key brands will comes to India in the second half of this year but expect them to come at a premium. TVS has also promised six new EVs in two years, including a commercial e-scooter that was spotted testing last year.