TVS to join the electric vehicle lane with Traction Motors next year

Automotive electricals manufacturer Lucas TVS will launch traction motors designed for electric vehicles by next year in what the 55-year-old TVS Group company believes is a key de-risking strategy to align with the global transition towards electric vehicles.
The company will set up a trial production line dedicated to its EV journey inside one of its seven plants, with room to scale up, based on demand.
The plan is to expand in a phased manner. The traction motors will find purchase in the growing electric rickshaws and electric three-wheeler segments.
Lucas TVS will evaluate product segments relevant for the EV industry as government regulations and incentives to encourage adoption of the cleaner technology evolve.
Having been working on the transition to electric-vehicle technology for four years now, the company views it as a threat to its existing businesses but also an opportunity to strike new ground.
Arvind Balaji, a fourth-generation scion of the TV Sundaram Iyengar family and the joint managing director at Lucas TVS, said that large automakers have made advances on building technology for e-vehicles, but the transition will be gradual.
With government regulations still being drafted, the dynamics between the original equipment maker and suppliers will become apparent only later.
"Everybody is working on the technology aspect of electric vehicles. What is still not clear is the roadmap. What is the government policy to promote EVs? What is the roadmap for charging infrastructure? What is the degree of localisation in manufacture of EVs? In India, as opposed to other countries where electric vehicles are driven by subsidies, economic value propositions will be a key driver," Balaji told ET in an exclusive interview.
Though the roadmap is hazy, Balaji has already begun making changes to his business to suit the transition - from different capital models to judicious capacity expansions. There will be a focus on the non-automotive clientèle like defence purchases.
Currently, the non-automotive businesses make up only 7% of the annual revenue.
"We started this de-risking four years ago. Traditionally, we make our sub-assemblies and components in-house. In the future, we will look to buy these sub-components from suppliers and assemble in-house. We won't invest in huge capacities and wait for the market to arrive because such risks are unaffordable right now."
In the next three years, Lucas TVS will invest about ₹200 crore. Its investments will get routed more towards research and development, and enabling partnerships with technology institutions to create intellectual property.
Currently, it has tie-ups with electronics consulting firms and institutes in Germany to tackle control system problems. Research is also underway at IIT-Madras on keeping down electromagnetic noise emanating from its motors.
Analysts tracking the transition to electric vehicles are confident that there will be a governmental push toward e-mobility adoption in the coming years.

Trending News

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Walmart may rope in Google parent Alphabet for the Flipkart deal

Internet shutdown cost Indian economy $3 billion from 2012-17: Study

Flipkart and Amazon plan mega summer sales in May

International sales now account for 48% of Twitter's revenues

70% of mobile phones buyers in India opt for non-cash payments

Amazon India expects groceries & household products to account for 50% of business in 5 yrs

India to come out with a E-commerce policy framework in 6 months

Online learning platform Career Anna raises Rs 3 Cr funding

Wal-Mart will offer to buy up to 86% of Flipkart

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities