TVS Motor gains on report of tie-up with BMW to manufacture EVs

• A report by CNBC-TV18 said that TVS Motor along with German automaker BMW to manufacture electric vehicles for India and global markets.
• Shares of TVS Motor surged as much as 7% today.
• At present, TVS and BMW are already in partnership to develop and manufacture 500 CC bikes for domestic and global markets.

Shares of TVS Motor Company gained as much as 7% on Wednesday on a report by CNBC-TV18 that said TVS Motor along with German auto giant BMW may announce a joint strategy to manufacture electric vehicles (EVs) for India and global markets.

This comes after the automaker created a subsidiary named TVS Electric Mobility, which will focus on the electric mobility business.

Adding to it, the two-wheeler firm along with software-as-a-services (SaaS) giant Zoho Corp together invested in electric two wheeler Bengaluru-based startup Ultraviolette Automotive.

Ultraviolette Automotive will use the latest Series C fund to launch its F77 high-performance electric motorcycle, which is currently in the final stages of testing. It expects to launch the electric vehicle (EV) in the first half of 2022.

At present, TVS and BMW are already in partnership to develop and manufacture 500 cc bikes for domestic and global markets. TVS produces G310R and BMW manufactures 310GS at the company's plant in Hosur.

In November, TVS Motor was in talks to raise funds from a clutch of global private equity investors to raise $300-500 million (₹2,220-3,700 crore) for its electric vehicle subsidiary.

The credit for the excitement about any development in the EV space goes to the government who has enhanced subsidies on two-wheeler EV and extended the faster adoption and manufacturing of hybrid and electric vehicles (FAME - 2) policy by two years to 2024.

SEE ALSO: SBI Mutual Fund to come up with an IPO; SBI to sell 6% out of 63% stake via the public issue

At ₹1, Reliance Jio’s latest data pack is the cheapest in the world – costs less than a packet of water