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

This will be the firm's second acquisition in Switzerland in e-mobility space in FY22. It took an 80% stake in EGO Movement for $17.9 mn in Sept 2021

TVS Motor Company, the flagship firm of the $8.5-billion TVS Group, has acquired a 75 per cent stake in Swiss e-Mobility Group (SEMG) for $100 million (about Rs 752 crore).

This is the company’s second acquisition in Switzerland in the e-mobility space during the current financial year, after buying 80 per cent 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 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 two online platforms and 31 physical stores.

“TVS Motor has always been committed to sustainability and has been investing in electric vehicles (EVs) 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 of TVS Motor Company.

TVS had announced the acquisition of Norton Motorcycles in Europe for Rs 153 crore in April 2020.

“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 the e-bicycle market holds significant growth potential, driven by increased ease of usage, regulatory support, and its overall perception as a sustainable form of transport.

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