TVS Motor Company, an Indian automotive manufacturer, announced that it has acquired a 75% stake in the Swiss E-Mobility Group (SEMG).

The company made the acquisition in an all-cash deal through its Singapore-based subsidiary, TVS Motor (Singapore) Pte Limited.

The company said the acquisition is part of its expansion plans in Europe through a portfolio of premium and technology-leading brands. It has recently acquired Norton Motorcycles and EGO Movement.

SEMG provides e-mobility solutions within the DACH region, including three central European countries Germany, Austria, and Switzerland. It operates one of the largest electric bike retail chains M-way in Switzerland, with a revenue of $100 million.

The company’s Swiss mobility portfolio includes electric bikes like Cilo, Simpel, Allegro, and Zenith. It has two online e-commerce platforms and 31 retail stores.

Electric bikes are fast gaining popularity for personal mobility in Europe because of their ease of usage, regulatory support, and overall perception of a sustainable form of transport. The electric bike market holds significant growth potential as the existing penetration of around 15% of the total bicycle population in Europe and growing at a compound annual growth rate (CAGR) of 18%.

Commenting on the acquisition, Sudarshan Venu, joint managing director, TVS Motor Company, said, “This acquisition furthers TVS Motor’s commitment towards e-personal mobility products. We are strengthening our presence in the rapidly growing e-bikes segment. SEMG has strong omnichannel distribution and aspirational brands, including Cilo, Simpel, and Zenith. I am excited to enhance the product range further and scale the company in the DACH region and beyond.”

Earlier this month, the company announced a strategic partnership with Swiggy to test the implementation of its electric two-wheelers for Swiggy’s food delivery and other on-demand services.

Last month, Ultraviolette Automotive, a Bengaluru-based electric vehicle startup, raised an undisclosed amount in a Series C funding round led by TVS Motor Company. Zoho Corporation also participated in the funding round.

TVS Motor boasts of an annual sale of more than 3 million units and an annual capacity of over 4.95 million vehicles. TVS Motor is also one of the largest exporters in India, with exports to over 60 countries.

With rising fossil fuel prices and increasing choices among electric vehicles (EV), established automobile firms and startups are investing heavily to develop the EV ecosystem in India. The EV companies expect the sector to gain significant momentum in 2022.