TVS buys 48% stake in Formula One driver Karthikeyan’s two-wheeler startup DriveX
Highlights
- Karthikeyan was the country’s first Formula One driver
- Works at DriveX, selling used motorcycles and scooters
- The acquisition is expected to be completed by November 30, 2022
TVS: Automobile major TVS Motor on Wednesday announced acquisition of 48 per cent stake in Narayan Karthikeyan-owned two-wheeler startup ‘DriveX’ for Rs 85 crore. Karthikeyan was the first Formula One driver in the country. The company said it will acquire 48.27 per cent stake in NKRS Mobility Millennial Solutions Private Limited (NMMSPL). It operates under the ‘DriveX’ brand through primary and secondary investments.
The acquisition is expected to be completed by November 30.
DriveX, founded by Karthikeyan, deals in leasing of two wheeler motorcycles and scooters and the sale and distribution of vintage motorcycles and scooters. Karthikeyan, Founder and CEO, DriveX, said that DriveX is a ‘Digital First’ business that serves all brands with analytics-based capabilities. TVS Motor said the acquisition is expected to be completed by November 30, 2022.
TVS Motor sales up 13%
Automobile company TVS Motor’s total sales in July were up 13 per cent at 3,14,639 units. The company had sold a total of 2,78,855 units in the same month last year. Total two-wheeler sales last month increased by 14 per cent to 2,99,658 units as against 2,62,728 units sold in July 2021. The company said domestic sales of two-wheelers stood at 2,01,942 units as against 1,75,169 units in the same month a year ago. According to the statement, “The company has invested in strategic relationships and action plans for the supply of semiconductors. Those efforts are showing results.
Aims to maintain dominance in EV category
TVS Motor Company is aiming to “continue dominance” in the electric vehicle segment by leveraging government initiatives such as the Production Linked Incentive Scheme (PLI). According to TVS’ annual report for FY 2021-22, the company has strong plans to expand its position in the electric vehicle segment. The two-wheeler maker said, “The company will take full advantage of the government’s PLI and FAME-II initiatives and strategically continue to dominate the segment.” TVS Motor said the electric vehicle industry is going to grow rapidly and the company has strong plans for this segment. The company said it expects to outperform the industry in terms of sales growth with new product launches and economic activity picking up pace once again. It is worth noting that TVS Motor had sold more than ten thousand electric vehicles in the last financial year.
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