7/14/22, 12:36 PM electric vehicles: Lucas TVS sets out on a Rs 3,000-crore diversification drive - The Economic Times

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Business News › Industry › Auto › Auto Components › Lucas TVS sets out on a Rs 3,000-crore diversification drive

Lucas TVS sets out on a Rs 3,000-crore

diversification drive
By Nehal Chaliawala, ET Bureau Last Updated: Apr 05, 2022, 10:24 AM IST
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Synopsis
Lucas TVS is diversifying into making motors for EVs and is also investing up to Rs 2,500
crore to set up a lithium-ion cell manufacturing plant in collaboration with 24M, an
American company that is developing new technologies to produce lithium-ion
batteries used in electric vehicles.

Looking to diversify beyond its core line

Getty Images

of automotive products, Lucas TVS is

looking to invest around Rs 3,000 crore
over the next 3-5 years to build
capabilities in areas like electric
vehicles (EV) and consumer appliances,
a top executive said.

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The company is diversifying into Range Rover in India
making motors for EVs and is also investing up to Rs 2,500 crore to set up a
lithium-ion cell manufacturing plant in collaboration with 24M, an American
company that is developing new technologies to produce lithium-ion 2. Luxury vehicle sales in India
grew in strong double-digits
in first half of 2022
batteries used in electric vehicles.

The auto parts maker is also widening its portfolio for combustion engine 3. Maruti's twin-pronged
strategy to protect, enhance
vehicles beyond its mainstay products like starter motors and alternators. This market share
will see an investment of about Rs 150 crore.

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7/14/22, 12:36 PM electric vehicles: Lucas TVS sets out on a Rs 3,000-crore diversification drive - The Economic Times

It diversified into making motors for consumer appliances like air

conditioners and washing machines over five years ago and plans to grow
further in this segment.

The company won two production-linked incentives (PLI) schemes recently –

for automotive components and air conditioners – while lost out to rivals in a
third one for making advanced chemistry cells.

With this, the company looks to have half of its revenues from its new
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business lines, according to Babu KSV, the business head for e-mobility and
automotive motors at Lucas TVS.

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“There are many areas we entered to de-risk from the core automotive
business,” he said. In the next five years, the company is looking to have 15-
25% of its revenues from EV products, 10% from non-core automotive motors Most Popular News
and 15-20% from motors for non-automotive applications like consumer
goods, the senior executive said.

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This comes at a time when the automotive industry is poised for a transition
to electric mobility, which may make most of the core products in Lucas TVS’ 2. Waiting time for employer-
sponsored green cards rises
portfolio obsolete. To be sure, the transition is expected to be gradual with
about 30% of total vehicles sold by 2030 expected to be electric.

3. Nothing phone (1) price

Lucas TVS is looking to start supplies of EV motors by the end of this month, leaked ahead of launch;
brand teases photography
Babu said. Production of these motors at scale was delayed, he said, as the samples
company faced quality issues with its vendors.

4. Centre allays concerns over
$620.7 bn external debt, says
The company has invested Rs 40 crore in setting up new lines for making a its share only 21%

variety of motors for electric two- and three-wheelers. The automotive PLI
scheme requires the company to make new investments of Rs 250 crore over
5. Will ITR filing deadline for
FY 2021-22 be extended?
the next five years, which it will meet, Babu said.

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to say
The company is setting up its new lithium-ion cell manufacturing plant near
Chennai and has earmarked Rs 2,500 crore for the same. The plant is expected
to be operational by January 2024 for making smaller quantities for customer
qualification before ramping up production based on demand, according to
Bhawani Shankar, the marketing vice president at Lucas TVS.

It has applied to get benefits for this plant under the Rs 18,100-crore PLI
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scheme for advanced chemistry cells but lost out the bid to the likes of Ola
Electric and Reliance New Energy Solar.

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Most Popular Opinion
Electric Vehicles Lucas Tvs Lucas Motors For EVs Babu KSV

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