Revealed during a recent investor call, TVS has announced plans for its upcoming lineup of new electric two-wheelers slated for release this year. Alongside, the company also disclosed its imminent launch of the first electric three-wheeler. TVS is strategically diversifying its product portfolio to capitalize on the growing demand for electric vehicles (EVs).
Variants and Pricing Strategy
TVS is actively developing iQube variants with varying battery capacities, aligning with industry trends to offer a broader price range. With competitors like Ather, Ola, and Bajaj adopting similar strategies, TVS aims to maintain its competitive edge in the market. Notably, the recent expiration of the Fame II subsidy scheme led to a substantial increase in iQube’s prices, prompting TVS to explore options for cost optimization.
Potential Reduction in Range
To address the pricing concerns, TVS may introduce an iQube variant equipped with a smaller battery pack, potentially resulting in a 20-30 percent reduction in the true range. This strategic move aims to enhance affordability without compromising on essential features, catering to a wider consumer base. Despite initial plans for a high-capacity iQube ST model, market dynamics may influence its feasibility amid evolving subsidy regulations.
Sales Performance and Network Expansion
TVS’s iQube has emerged as India’s second best-selling e-scooter, reflecting its growing popularity among consumers. Sales figures doubled to 1.94 lakh units in the financial year ending March 2024, surpassing expectations. The extensive network expansion, currently comprising 712 touchpoints, has significantly contributed to the brand’s market penetration and customer reach.
Delays and Subsidy Considerations
Despite earlier indications of a new electric two-wheeler launch, TVS has encountered delays, possibly due to ongoing uncertainties surrounding subsidies. With the expiration of the Fame II subsidies and the introduction of the Electric Mobility Promotion Scheme, TVS may be assessing the regulatory landscape before proceeding with its product launch strategy. The company’s cautious approach underscores its commitment to navigating the evolving EV market dynamics while ensuring optimal utilization of available incentives.
