TI Cycles set for power ride with Pedelec

Targets 50% growth in electric scooters business.

TI Cycles of India, a part of the Murugappa group, expects to grow its electric scooters and bicycles business by 50 per cent in the next financial year, on the back of a renewed interest in electric bikes and with new products, especially the ‘Pedelec', a battery-powered bicycle.

TI Cycles, which is a division of Tube Investments of India, expects its electric vehicles business to earn revenues of Rs 30 crore this FY and “our anticipation is that we will grow the business by 50 per cent in the next financial,” said Dr D. Raghuram, President, TI Cycles. The TI Cycles division made Rs 960 crore in revenues in the last year.

On Monday, Mr A. Vellayan, Chairman, Murugappa Group, received at Dare House, the Murugappa group's corporate headquarters in Chennai, a team of six senior executives of TI led by Dr Raghuram, who had completed a 743-km, coast-to-coast ride from Kollam in Kerala to Chennai.

Dubbed the ‘BSA Hercules electric coast to coast' ride, the team took six days to travel the distance. The idea was to test its electric bikes under all conditions, said Dr Raghuram, and also interact with dealers, school children, customers and promote its ‘faster, fitter and greener' platform.

The Pedelec, powered by a 24 volt battery, which makes cycling easier for the rider, will be launched by March. To be priced in the band of Rs 7,000 to Rs 12,000, the Pedelec, pointed out Mr Rajesh Mani, General Manager, Marketing, will provide a youngster looking to buy an unaffordable two-wheeler an option to own a motorised two-wheeler which is safer and ‘greener'. On a single charge, which could take between 8 and 10 hours, the cycle's battery, along with some pedalling, can last for 40 km. Imported till recently, the batteries are now made by Exide for TI.

TI also expects its BSA electric scooters to get a boost from the subsidy of Rs 4,000 per bike announced recently by the Ministry of Renewable Energy. The subsidy will be given to manufacturers who have 30 per cent indigenised content. This, said Dr Raghuram, is a welcome break, even though it does not match the Rs 10,000 subsidy given by the Delhi Government which helps TI price its scooters at around Rs 16,000 approximately for its lowest-end version which is powered by a 250 volt battery. In other markets, the prices range from Rs 25,000 to Rs 40,000, the latter being the higher-powered 800 volt version. The 250 volt version does not require a licence to ride.

Dr Raghuram said electric vehicles are inherently more energy-efficient to use and are finding takers among cost-conscious users, given the spiralling fuel prices, and among women. Parents who are looking at a cheaper, safer option than a speeding two-wheeler can look at the Pedelec, said Dr Raghuram, and TI intends to target them in their communication.

The electric scooters is a big hit among the trading community as well for their delivery boys as there is no fear of petrol theft. Given its low running costs of 10 paise a km, a milkman in Tuticorin is the BSA electric scooter brand's most dedicated customer, having done 7,000 km to date, according to Dr Raghuram.