TVS Motor Company shares rose by more than 10% in the last five trading sessions, compared to a 2% increase in the BSE Sensex benchmark as a result of the pressure on the large electric vehicles of the two-wheeler (EV) manufacturer.

TVS Motor Company aims to build a “sustainable dominant game” in the electric vehicle segment by using various government initiatives such as, but not limited to, a production incentive program. According to the annual report for 2021-22, the company has solid plans to increase its activities in the electric segment.

Earlier this month, the Mint’s report suggested that TVS Motor Co. Ltd is in advanced talks to raise 4,000-5,000 crore from private equity firms to finance an expansion plan for the newly created group electric mobility arm. TVS wants to increase its share of the revenue from its electric vehicle business by taking advantage of the growing demand for electric vehicles worldwide.

TVS has advanced discussions with PE players. The money is likely to be raised in the September quarter itself, the report said, adding that the rate would be decided depending on the transaction pricing for TVS Electric Mobility.

The company created a dedicated division for the electric vehicle segment, employing over 600 engineers, and adopted Competence Centers (COCs) with an agile approach to work. TVS has sold over 10,000 electric vehicles in FY22, according to the company’s investor presentation. It works with Tata Power and Jio-BP to create a charging infrastructure for electric vehicles.

TVS Motors is doubling the number of electric vehicles as India is increasingly focused on reducing vehicle pollution in cities and reducing dependence on fossil fuels in the face of rising fuel prices. Two-wheeler customers are also increasingly switching to electric scooters.

In the year ended March 2022, the company’s total sales of two- and three-wheeled vehicles, including international operations, increased by 8% to 33.10 lakh units, compared with 30.52 lakh units in fiscal 2020-21.

TVS Motor produces two-wheelers, ranging from mopeds, scooters, commuter motorcycles, to bicycles such as the Apache and RR310 series. TVS Motor shares increased by more than 31% during the year, while car shares have so far increased by around 29% (from the beginning of the year).

(with inputs from PTI)

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