Media reports suggest that the total cost of acquisition would be around Rs. 5 crore.
TVS has acquired a 14.8 per cent stake in Bengaluru-based electric two wheeler start-up, Ultraviolette Automotive.
Ultraviolette was founded in December, 2015, with the aim of building an ecosystem that addresses the transportation needs of an urban environment. The firm reported a total revenue of Rs 3.21 lakh in 2016 -2017 fiscal year.
TVS' investment in a an EV firm comes at a time when the authorities are constantly insisting on fossil fuel powered vehicles to be phased out in India by 2030. TVS is already said to enter the electric scooter market sometime in 2018, and this new development will surely help the Hosur-based company facilitate its EV technology development.
In October, 2016, the county’s largest bike maker - Hero Motocorp, took a similar step by acquiring 30 per cent stake in Ather Energy, another bengaluru-based EV startup that was founded in 2013.
TVS is keen on exploring various two-wheeler segments in India to expand its market share. Very recently, the company launched the much hyped Apache RR 310 - its first ever fully faired motorcycle which is developed in collaboration with BMW Motorrad.
Also Read: TVS Apache RR 310 Review: First Ride