Shares of leading two-wheeler maker TVS Motor rose 2.88% to Rs 1,109.5 at around 11 am on Tuesday, following reports of a major investment in its electric vehicle (EV) unit TVS Electric Mobility.

Global investment firms Goldman Sachs, Carlyle and the Abu Dhabi Investment Authority (ADIA) are considering investing $30-350 million in TVS Electric Mobility, according to people familiar with the matter. If the deal goes through, the investment will value the company at $3-3.5 billion, making it the second most valuable 2W EV company in India.

TVS Electric Mobility, launched in December 2021 as a subsidiary of TVS Motors, plans to invest Rs 1,000 crore in the electric vehicle sector in the next few years. The company aims to become a major player in the 2W EV market in India, and this investment could be an essential step towards that goal.

TVS Motor has made great strides in the 2W EV market with the launch of the iQube electric scooter in India in 2020. Sales of the model have been thriving, with double-digit sales growth over the past three quarters.

In Q3FY23, iQube sold 29,230 units, an 87% increase from the 15,645 units sold in the previous quarter and a 79% increase from the 8,724 units in the April-June quarter.

The investment will also boost India’s nascent electric vehicle industry, which has seen a surge in demand due to rising fuel prices and growing awareness of the benefits of EVs.

TVS Motor has been working on electric vehicle technology for some time and has partnered with BMW to develop vehicles on a common platform with an emphasis on electric cars. This partnership could help the company maintain a leading position in the rapidly evolving electric vehicle market.