TVS Motor acquires Swiss e-bike maker to tap into the segment in Europe
TVS Motor Company has acquired EGO Movement, a Swiss e-bike company in an all-cash deal through its Singapore Subsidiary TVS Motor (Singapore) as it seeks to tap into the fast growing e-bike market, company’s top official said at a virtual press meet on Thursday.
It is part of the larger strategy to expand TVS’ presence in the developed markets and furthers the company’s journey into the European continent, he said. Last year, it acquired UK-based Norton Motorcycles.
The Chennai-based company has bought 80 per cent stake in EGO for $17.9 million and aims to generate $100-150 million in the next three to five years by participating in growing demand for e-bikes in the continent.
“TVS is committed to being a personal mobility company and as we were scouting for companies to be part of the growth expected in the e-bike segment in Europe, we came across EGO,” Sudarshan Venu, joint managing director, TVS Motor said.
India’s third-largest two-wheeler maker has committed Rs 1,000 crore to manufacture electric vehicles under a separate vertical, it said earlier this month.
The European e-bike market is expected to be worth $20-25 billion in 5 years, he said. The founders will remain invested in the company and help in nurturing the business.
EGO Movement is a profitable company with sales of about 3500 units in 2020 generating revenues of $6 million, which TVS wants to double to $10-12 million within a year, said Venu. TVS does plan to introduce e-bikes in India but the immediate priority, however, is to expand presence in Europe by taking the number of stores to 32 by 2025 from 10. It currently has a portfolio of 10 products catering to the city, hybrid and cargo segments. TVS plans to double it to 20. EGO expects to close sales with 3,500 units by the end of this calendar year.
Led by the co-founder’s Daniel Meyer and Marie So, EGO Movement is a technology company that provides innovative mobility solutions through a portfolio of e-bikes, e-cargo bikes, and e-scooters. It has an omni-channel network across Switzerland, Liechtenstein and Germany with plans to expand across Europe, combining the best of strategically located stores with a seamless online experience, TVS said.
The e-bike market has been at the forefront of personal mobility innovation, with new business models and technologies advancing rapidly with global trends. Various sub-segments have also emerged to cater to customers’ evolving needs – ranging from city bikes for daily commute to mountain bikes for adventures or cargo bikes for carrying loads or people, said Venu.
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