TVS Motor, a leading two-wheeler manufacturer in India, has announced a strategic partnership with food-delivery startup Zomato to promote eco-friendly transportation for short-distance deliveries. In an after-market-hours filing on June 28, TVS Motor revealed its plan to deploy over 10,000 electric scooters over the next two years. The company also stated that it would ensure delivery partners onboarded on Zomato have access to charging stations within their vicinity, as well as a smooth digital integration for convenient and efficient deliveries.
TVS Motor’s collaboration with Zomato aligns with both companies’ efforts to encourage the adoption of electric vehicles (EVs). However, this move hasn’t made a significant impact on investors, as the company’s shares were trading flat at Rs 1,332 apiece on June 30, registering a mere 0.2 percent increase from the previous close.
This partnership comes after the revision of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, which prompted TVS Motor to increase the price of its iQube electric scooter by Rs 17,000 to Rs 22,000, depending on the variant. Despite this price hike, TVS Motor Company reported a remarkable 49 percent increase in net profit for the March quarter, amounting to Rs 410 crore compared to the same period last year. Additionally, consolidated revenue from operations saw a significant surge of 19.4 percent, reaching Rs 6,604 crore compared to Rs 5,530 crore in the preceding year’s quarter.
The fourth quarter of the fiscal year demonstrated improved earnings before interest, taxes, depreciation, and amortization (EBITDA) for TVS Motor, with an operating EBITDA of Rs 680 crore. This marks a 22 percent growth compared to the same quarter from a year ago.
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In conclusion, TVS Motor’s strategic partnership with Zomato to accelerate the use of electric scooters for short-distance deliveries reflects the company’s commitment to eco-friendly transportation. While investors may not have reacted strongly to this announcement, TVS Motor’s financial performance in the March quarter indicates overall progress and growth for the company. As the market continues to evolve and adapt to sustainable practices, it remains to be seen how this partnership will impact TVS Motor’s position in the two-wheeler industry and Zomato’s delivery operations.
