Tube Investments of India (TII), part of over Rs 38,000 crore diversified business conglomerate Murugappa Group has partnered with a Korean firm for the design of its proposed electric three-wheeler which will be hitting the market by January next year. The technology for the EV three-wheeler, for which a prototype has already been developed, would be a combination of in-house as well as design support from a Korean company, Vellayan Subbiah, MD, TII said at an analyst call recently, without revealing the identity of the company. “We are entering the electric three-wheeler business. “So basically, we are going to start manufacturing and selling electric three-wheelers and so that will be around perhaps December to January time-frame,” he said.
TII, an auto-component firm, which specialises in engineering, bicycles, metal-formed products, and chains had recently announced its foray into manufacturing of three-wheeler EVs with an outlay of up to Rs 200 crore. He said its venturing into EV three-wheeler will not have any impact on its existing customers. “ It is an environment where we do not see kind of too much against any of our existing customers especially not in the businesses that they are in, we do not supply too much into the three-wheeler space,” he said.
On the synergy of the existing business lines with the new venture, Subbiah said it wants to reduce dependence on just the automotive industry. “ Because being an auto component supplier, we feel two challenges with it. One is, it is very capital intensive and the second is very cyclical and cyclicality does not create an ability to generate consistent and constant cash flows and we do not see that as good for our company,” he said. TII had recently completed the acquisition of CG Power and Industrial Solutions previously known as Crompton Greaves, a company engaged in design, manufacturing, and marketing of products related to power generation, transmission, and distribution.
Kalyan Kumar Paul, president, TI Cycles of India, the bicycle division of TII under which the new vertical will operate, said the company had looked at design, value proposition and the buyers. “We have looked at total cost of ownership and how much we can share with the current wave and how we will get to adopt EV. We are in bicycle business so we raised our vision to say eco-friendly mobility and the vision got enlarged from the cycling to mobility. Coming to specifics, broadly at this stage, we have done a lot of reliability tests, we have done design tests, we had consultation with our design partners and we are very hopeful that we deliver something good for the market and for our customers and thereby win over a period of time,” he said.
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