TVS takes 75% stake in Swiss e-bike firm for $100 m

TVS Motor said it has picked up a 75 per cent stake in Swiss E-Mobility Group AG (SEMG) for $100 million, in a bid to scale up its business in Europe, which is at the core of the e-bike mobility landscape.

The all-cash deal came just four months after TVS took a majority stake in another European e-bike brand EGO.

The moves are also part of its plan to prepare its product portfolio for the future. The company plans to acquire the remaining 25 per cent stake in SEMG “sometime next year”, TVS Managing Director Sudarshan Venu said, underscoring how the Swiss company had 20 per cent of the country’s market share.TVS aims to earn revenue of $100 million from e-bikes by the end of 2022.

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Industry analysts are optimistic about the company’s foray into personal e-mobility. “Two-wheelers have often led the revolution in mobility in India: TVS has the institutional memory for this in their genes, and their strong push to e-mobility is a strong indicator that we are at a point of inflexion in mobility again (switch from fossils to e-mobility,” said Utkarsh Sinha, MD of boutique advisory firm Bexley Advisors.

With a current penetration of approximately 15 per cent of the total bicycle population in Europe and growing at a CAGR of ~18 per cent, the market for the e-bicycle holds significant growth potential.

“The acquisition is a strong indicator not just of their bullishness on the space, but that they intend to leapfrog competitors to hasten the maturity of this market by attaching it face-on. This also allows them to expand outwards into e-mobility solutions for Europe and other export markets,” Sinha added.

SEMG has a portfolio of four e-bike brands – Simpel, Cilo, Allegro, Zenith – across all major e-bike segments like e-city, e-mountain bikes and speed pedelecs – high powered e-bicycles popular in Europe.

“This acquisition furthers TVS Motor’s commitment towards e-personal mobility products. We are strengthening our presence in the rapidly growing e-bikes segment. SEMG has strong omnichannel distribution,” Venu said.

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