TVS Motor Company Ltd’s share price declined almost 6 percent on Thursday following the two-wheeler maker’s extended collaboration with BMW Motorrad for its foray into the electric vehicles and future technologies segments. The stock ended 2 percent higher on Wednesday after the partnership announcement in the last hour of trading. However, brokerages advised investors to be wary given the high competition in the electric two-wheelers segment.

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TVS Motor has announced that it will jointly develop electric bikes with German motorcycle maker BMW Motorrad and the first bike will be launched in the next 24 months.

Though the brokerages are wary of the competition, TVS on its part seems confident having announced its aim to bring out a 'best-in-class quality with economic advantage' electric bike.

The company faces tough competition from peers like Ola, which commenced deliveries of its electric scooters on Wednesday, Hero MotoCorp-backed Ather Energy, and Bajaj Chetak electric scooters among others that have already pretty much captured the space being the first movers.

CitiGroup has a ‘sell’ rating on the TVS Motor stock with a target price of Rs 540 as it believes the company’s electric bike offering iQube is relatively weak compared to peers.

Even as global brokerage Credit Suisse has called the tie-up with BMW a positive development, which will add to armoury and deepen tech know-how, it has an ‘underperform’ rating for the two-wheeler maker’s shares with a target price of Rs 556. It said other incumbents Bajaj Auto and Hero Moto already have tech tie-ups.

Meanwhile, according to Jefferies, data suggests Ola has a lead over peers on website traffic and engagement.

At 2 pm, TVS Motor shares were trading 4.69 percent lower at Rs 641.50 apiece on the Bombay Stock Exchange and were down 4.82 percent to Rs 641.35 per share on the National Stock Exchange.

First Published:Dec 16, 2021 2:29 PM IST