Tube Investments to launch electric 3-wheelers by Mar

Murugappa group company Tube Investments of India (TII), the makers of iconic bicycle brands like BSA and Hercules, will foray into the e-mobility space by launching electric three-wheeler passenger vehicles by March 2022, a top company executive told Business Standard.

Following this, TII will gradually look into the cargo segment, scooters and e-rickshaws. TII, which operates in three business divisions, including engineering, bicycles and metal-formed products, has a market share of around 25 per cent in India’s bicycle market.

The company has already started work on a separate unit for electric vehicles (EVS) at its Ambattur facility. This unit may see an investment of around ~150-200 crore during the first phase, till 2023.

“We will launch our electric three wheelers (L5M or passenger category) by March next year. Work has already started on it and a lot of equipment is getting installed. We are looking at our possible markets, distribution and service strategy,” said Kalyan Kumar Paul, president of TI Cycles of India.

TII’S strategy is to first look into the Southern markets and quickly accelerate its presence to other regions of the country. The advantage for TII as an EV player would be an established supply chain of 3,500 direct dealer points for bicycles and 190 exclusive retail outlets under the brand ‘Track & Trail’. The company can take advantage of this, at least in the initial stages of its EV foray.

“After L5M, we will get into last-lap connectivity in the cargo (L5N) space in quick succession. Later, this may be followed by erickshaws and scooters,” Paul said.

During the initial stages of its planning for new electric three wheelers, the company had roped in a Korean firm for technology sharing.

Another group firm Carborundum Universal has already acquired lithium ion battery technology from Indian Space Research Organisation (ISRO). This will be an advantage for TII in its EV foray.

“When Carborundum Universal is in a position to announce its plans, we will look at it. There are many such synergy opportunities in TII as well, including tubes and metal works, where we can leverage the ecosystem to give a competitive advantage,” Paul added.