TVS Motor acquires 75% in largest Swiss e-bike player SEMG for $100 million

TVS Motor Company, the flagship company of the $8.5 billion TVS Group, has announced the acquisition of 75 per cent stake in the Swiss e-Mobility Group (SEMG) for $100 million.

This will be the company’s second acquisition in Switzerland in the e-mobility space during the current financial year. It took an 80 per cent stake in EGO Movement for $17.9 million in September 2021. “SEMG has almost 20 per cent market share in that country. We will acquire the remaining 25 per cent in the company soon. This will help us in expanding our e-mobility presence in remaining countries of Europe and in India,” said Sudarshan Venu, Joint Managing Director, TVS Motor Company. The company is planning to launch SEMG brands — Cilo, Simpel, Allegro, and Zenith-–in India by the end of 2022.

SEMG is a market-leading provider of e-mobility solutions within the DACH region, operating the largest pure-play e-bike retail chain M-way in Switzerland with close to $100 million in revenue. SEMG has a combination of extensive physical network and e-commerce platform with two online platforms and 31 physical stores.

“TVS Motor has always been committed to sustainability and has been investing in electric vehicles for over 10 years. The increasing global focus on the environment and personal well-being is rapidly accelerating demand for newer mobility solutions, and TVS Motor is investing to drive this change,” said Venu Srinivasan, Chairman, TVS Motor Company. The acquisition has been made in an all-cash deal through TVS Motor’s Singapore Subsidiary, TVS Motor (Singapore).

“TVS Motor is committed to being at the forefront of e-personal mobility globally. SEMG complements our acquisitions of Norton Motorcycles and EGO Movement and strengthens our commitment to environmental sustainability. We offer our customers a compelling portfolio of technologically advanced and environmentally friendly products,” said Ralf Speth, Chairman designate, TVS Motor Company. It was in April 2020 that TVS had announced the acquisition of Norton Motorcycles in Europe for Rs 153 crore.

“This acquisition furthers TVS Motor’s commitment towards e-personal mobility products. We are strengthening our presence in the rapidly growing e-bikes segment. SEMG has strong omnichannel distribution and aspirational brands,” Venu added. The company said that with the current penetration of approximately 15 per cent of the total bicycle population in Europe and growing at a CAGR of 1 per cent, the market for the e-bicycle holds significant growth potential. This is mainly driven by increased ease of usage, regulatory support, and overall perception as a sustainable form of transport, it said.

In October, TVS board had cleared a proposal to establish a separate subsidiary for the electric vehicle business. TVS is also looking to invest Rs 1,000 crore in EV expansion. It is also is gearing up to create a capacity of 10,000 EVs per month by the end of this year.

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