Now acquired by India’s TVS Motor, the Swiss EGO Movement has 10 stores in Switzerland and Germany, planning 20 stores by 2022 and 32 by 2025.
TVS Motor Company, the flagship of the $8.5-billion TVS Group, announced the acquisition of Switzerland-based electric-bicycle manufacturer, EGO Movement, at a price of 16.6 million Swiss franc (CHF). A USD equivalent of 17.95 million.
TVS Motor plans to grow the e-bike business across Europe following their acquisition and later expand to the US and Indian markets. The company expects to increase their revenue ang generate $100-150 million from the e-bike business in the coming five years.
TVSM announced that the company had signed a partnership through its Singapore subsidiary TVS Motor (Singapore) Pte. Ltd. with the Swiss-based EGO Movement as a majority shareholder, in an all-cash deal. This puts the company’s stake in EGO Movement at 80 percent.
“We have acquired 80% stake of Swiss firm for 16.6 million CHF. Initially, the plan is to really scale up business in Europe by doubling the offerings and outlets,”Sudarshan Venu, JMD, TVS Motor Co.
According to Mr. Sudarshan, the Swiss firm is profitable, with 40 employees. It generated a revenue of 5 million CHF last year with plans to double it this year. The company has 10 outlets in Switzerland and Germany. It will aim to have 20 stores by 2022 and 32 by 2025.
Currently, EGO has several products in city, hybrid and cargo variants and plans are on to double it. EGO plans to sell 3,500 units during 2021 with an average price of CHF 3,300.
On the acquisition, Sudarshan commented: “TVSM is committed to being a personal mobility company. And in this area, we felt e-bicycles has a huge opportunity and growing at a double digit CAGR and was expected to achieve a industry revenue of €20-€25 billion euros by 2025.”
As TVSM was looking at e-bicycles segment to further grow its business in Europe, it came across the Swiss firm that had sound platform, satisfied customers, good management team and unique product and design, he said.
“Our initial focus will be Europe. Then we will look at India, the US and other markets. In Europe, we would like to scale it up exponentially,”
“It is also an important milestone in our journey to grow our presence in Europe, with the Norton Motorcycles acquisition last year and now the launch of the personal e-mobility platform,”Sudarshan Venu, JMD, TVS Motor Co.
EGO Movement offers a range of electric bicycle models, with a Bafang 250 W mid-mounted motor, 65 Nm torque. With a range of 70-110km and a Samsung 504Wh (36 V / 14 Ah) battery. With variant for Classic, Explorer and City, where the main difference is the frame designed for the different types of rides.
The EGO E-Cargo and E-Position are two more e-bike models that offer a storage front, in the form of a standard (large wheelbase) bicycle, or tricycle. These run a 250 W motor configured to 80 Nm torque, and 522 Wh (36 V / 14.5 Ah) battery, that can last a range of 50-80 km for full loading capacity.
After their recent launch of the TVS iQube electric scooter two months ago, the company continues to push towards electric mobility with this acquisition.