TVS makes second major European acquisition after acquiring iconic British two-wheeler brand Norton Motorcycles
TVS Motor Company has made another major acquisition of a European company, this time in the field of electric mobility. The Indian bicycle maker has acquired a majority stake in the Swiss company EGO Movement, which manufactures electric bicycles.
The company struck a Rs. 132 crore (16.6 million Swiss francs) cash deal to take 80% stake in EGO. The remaining 20 percent will be held by the founders of the Swiss company. The deal was made through TVS’s Singapore-based subsidiary, TVS Motor Singapore Pte. Ltd.
Televisions in Europe
This is TVS’s second major acquisition in Europe following the takeover of iconic British brand Norton Motorcycles. After the latest development, TVS plans to expand its presence in the electric mobility space across Europe and later expand to other markets such as India and the United States.
The company expects to generate US $ 100-150 million in revenue from the e-bike business over the next five years. TVS Co-Managing Director Sudarshan Venu said the deal is a step forward towards providing unique electric mobility solutions.
Led by co-founders Daniel Meyer and Marie So, EGO Movement is a Swiss technology company that offers a wide range of mobility solutions such as electric bikes, electric cargo bikes and electric scooters. The brand has expertise in combining designs with software and hardware. Currently, it has a very small omnichannel network of 10 retail stores in Switzerland, Liechtenstein and Germany with plans to expand across Europe.
Expansion and Growth Plans
The Swiss company currently employs around 40 people. EGO reported annual sales of around 3,500 units last year with revenue of $ 6 million in 2020. The brand is looking to expand its presence by increasing its retail network to 20 stores by 2022 and 32 by 2025. With the proposed expansion, TVS expects the turnover of EGO to reach 10 million francs this year and approximately 100 million dollars (90 million francs) in about five years.
Venu added, “We are building a strategic personal electric mobility ecosystem by developing unique brands that share our vision of delivering compelling customer experience credentials through cutting-edge and ambitious products. He further revealed that the electric mobility space is growing at double-digit CAGR, especially in European markets like Germany, Switzerland and the Netherlands.
TVS has been in the news for the last few hours since the launch of a new 125cc sporty commuter motorcycle in the form of the Raider. The motorcycle was offered at a starting price of Rs 77,500 and contains many advantages for a 125cc motorcycle.