TVS Motor Company has committed Rs 1,000 crore in investment for the current fiscal year, of which a sizable portion will go toward capacity growth and the creation of an EV product portfolio to move toward a significant transition to electric vehicles.

The two-wheeler giant from South India has committed to invest Rs 1,000 crore for the second year in a row. This money will have to be used to double its EV production capacity to 25,000 units per month by the end of the year and to ramp it up to 50,000 units per month the following year, bringing the annual production capacity to 5–6 lakh units.

The two-wheeler giant from South India has invested Rs 1,000 crore for the second year. This money will be used to double its EV production capacity to 25,000 units per month by the end of the year and to ramp it up to 50,000 units per month the following year, bringing the annual production capacity to 5–6 lakh units.

For the second consecutive year, TVS Motor is boosting its investment in foreign companies to take advantage of the growing market share of electric vehicles.

Through its subsidiary TVS Singapore, the business invested around Rs 1,100 crore, of which over Rs 750 crore went to SEMG, which TVS purchased last year, Rs 130 crore to EGO Corporation, and the remaining amount to Norton Motorcycle. In FY22, TVS Singapore invested a total of Rs 1,892 crore, up from Rs 809 crore the previous year, according to the company’s annual report.

Despite operating performance significantly increasing on higher volume and better cost efficiencies, a rapid increase in investment caused the company’s free cash flow to turn negative, underscoring the company’s relentless pursuit of high assets and market outperformance.

In addition to investments in subsidiaries, TVS Motor NSE 0.27 per cent spent almost Rs 730 crore on capital projects in FY22, an increase of 31% year over year. Therefore, it spent close to Rs 2,100 crore on capital expenses and investments in FY22.

With the growth of capacity and sales touchpoints, it is prepared for a production rate of 25,000 units per month by the end of 2022. The company’s recently launched improved iQube has received positive feedback and has a large order backlog.

Despite operating performance significantly increasing on higher volume and better cost efficiencies, a rapid increase in investment caused the company’s free cash flow to turn negative, underscoring the company’s relentless pursuit of high assets and market outperformance.

In addition to investments in subsidiaries, TVS Motor NSE 0.27 per cent spent almost Rs 730 crore on capital projects in FY22, an increase of 31% year over year. Therefore, it spent close to Rs 2,100 crore on capital expenses and investments in FY22.

With the growth of capacity and sales touchpoints, it is prepared for a production rate of 25,000 units per month by the end of 2022. The company’s recently launched improved iQube has received positive feedback and has a large order backlog.