TVS Motor Company is likely to join hands with German automaker BMW to manufacture electric vehicles for India and global markets, industry sources said on Wednesday.
“TVS and BMW likely to announce a joint strategy on development and manufacturing of electric vehicles for India and global markets,” they told CNBC-TV18.
The development comes days after TVS Motor informed the stock exchanges about the incorporation of TVS Electric Mobility Limited on December 13.
At present, TVS and BMW are already in partnership to develop and manufacture sub 500 cc bikes for domestic and global markets. TVS produces G310R and BMW 310GS at the company's plant in Hosur.
In early November, a report claimed TVS Motor was in talks with a clutch of global private equity investors to raise $300-500 million (Rs 2,220-3,700 crore) for its electric vehicle subsidiary at a valuation of $3.5-4 billion.
Prior to that, in the second half of October, the automaker entered into a strategic partnership with Tata Power to set up electric vehicle charging infrastructure across the country. As part of the MoU, the two companies have agreed to drive the comprehensive implementation of electric vehicle charging infrastructure (EVCI) across the country and deploy solar power technologies at TVS Motor locations.
The development of TVS and BMW's expanding partnership in the electric vehicles segment comes at a time when the government is encouraging the adoption of EVs. While the Centre has substantially enhanced subsidies on electric two-wheelers and extended the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME - 2) policy by two years to 2024, as many as nine states have announced EV policies in the last 12 months.