TVS Motor Acquires Majority Stake in DriveX, Strengthens Pre-Owned Market

TVS Motor Company has announced the completion of its acquisition of a 39.11% stake in DriveX Mobility, bringing its total ownership in the company to 87.38%. With this move, DriveX becomes a subsidiary of TVS Motor, marking a significant step in the automaker's strategy to expand its presence in the pre-owned two-wheeler market.  

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In a regulatory filing, TVS Motor stated, “The company has today completed the acquisition of 7,914 equity shares of a face value of ₹10 each, comprising 39.11% of the issued, subscribed, and paid-up share capital of DriveX from its existing shareholder.” While the company refrained from disclosing financial details of the transaction, this acquisition solidifies TVS Motor’s commitment to leveraging DriveX’s unique business model.  

About DriveX Mobility

Founded in April 2020 by India’s first Formula 1 driver, Narain Karthikeyan, and his childhood friend Christopher Anand Sargunam, DriveX Mobility is a digital-first auto-tech platform. It specializes in the procurement, refurbishment, and retailing of pre-owned two-wheelers across India. The company operates through a combination of company-owned (COCO) stores and franchisee-operated (FOFO) outlets.  

DriveX offers a comprehensive suite of services, including the sale of spare parts, accessories, and engine oils for two-wheelers. This innovative approach has positioned DriveX as a pioneer in the pre-owned two-wheeler market, catering to a wide customer base with its efficient and transparent service offerings.  

In August 2022, TVS Motor had previously acquired a 48.27% stake in DriveX’s parent company, Nkars Mobility Millennial Solutions, indicating its long-term vision to integrate DriveX into its portfolio.  

Stock Performance and Strategic Implications

TVS Motor shares have demonstrated mixed performance over the past year. According to BSE analytics, the TVS Motor share has risen by 21.35% over the last year and 18.3% on a year-to-date basis. However, the stock has faced headwinds recently, declining by 16% in the past three months and 1% over the last month.  

This acquisition could provide a new growth avenue for TVS Motor, helping it navigate the challenges of market fluctuations. By integrating DriveX, TVS Motor aims to strengthen its foothold in the pre-owned vehicle segment, which has seen increasing demand across India.  

Conclusion

The acquisition of a majority stake in DriveX Mobility underscores TVS Motor’s commitment to innovation and diversification within the automotive sector. By making DriveX a subsidiary, TVS Motor is poised to capitalize on the growing pre-owned two-wheeler market, enhancing its overall value proposition and market competitiveness. As TVS continues to focus on integrating DriveX's technology-driven platform with its robust operational infrastructure, the company is likely to achieve greater market penetration, contributing to its long-term growth objectives. The move also highlights TVS Motor's vision of providing end-to-end solutions in the two-wheeler segment, ensuring a stronger foothold in both the new and pre-owned vehicle markets.