TVS Motor Acquires Majority Stake in DriveX Mobility, Strengthening Its Position in the Pre-Owned Two-Wheeler Market
In a major move to expand its reach in the growing pre-owned two-wheeler market, TVS Motor Company has significantly increased its stake in DriveX Mobility, a digital-first platform co-founded by Narain Karthikeyan, India’s first Formula One driver, and his business partner Christopher Anand Sargunam.
This acquisition has seen TVS Motor acquiring 39.11% of DriveX’s equity shares, bringing its total ownership to a commanding 87.38%. With this stake, DriveX Mobility is now officially a subsidiary of TVS Motor.
While the exact financial details of the transaction haven’t been revealed, the move reflects TVS Motor’s strategic push to become a key player in the rapidly expanding used two-wheeler market.
What is DriveX Mobility? A Quick Overview
DriveX Mobility, founded in April 2020, is an innovative auto-tech platform that focuses on the procurement, refurbishment, and sale of used two-wheelers. It provides a seamless digital and retail experience for customers looking to buy reliable, pre-owned bikes and scooters.
The company operates through a mix of company-owned (COCO) outlets and franchisee-operated (FOFO) locations. In addition to refurbished vehicles, DriveX also offers spare parts, accessories, and engine oils—making it a one-stop shop for anyone looking to purchase or maintain a used two-wheeler.
This model, combining online accessibility with offline retail, has proven to be highly attractive in the fast-growing used vehicle market. DriveX’s focus on quality and customer trust has helped the platform carve out a unique niche in India’s competitive automotive space.
TVS Motor’s Growing Presence in the Pre-Owned Market
TVS Motor’s decision to increase its stake in DriveX Mobility follows a strategic vision to tap into the expanding market for pre-owned two-wheelers. The move further strengthens TVS’s position in the sector and aligns with its long-term goals to diversify its offerings and reach more customers.
This latest transaction builds on TVS Motor’s earlier purchase of 48.27% of DriveX’s parent company in August 2022, which marked the beginning of their partnership. With the new stake acquisition, TVS Motor now holds an overwhelming majority in the company, giving it full control over DriveX’s operations.
Why the Pre-Owned Two-Wheeler Market is Booming
The pre-owned two-wheeler market in India has seen tremendous growth, driven by factors such as:
- Affordable Mobility: Used motorcycles and scooters offer a more affordable option for customers, especially in smaller cities and rural areas where cost-effective transport solutions are essential.
- Rising Demand: The demand for personal mobility solutions, especially in the post-pandemic world, has surged. People are increasingly looking for affordable and reliable vehicles, and used two-wheelers fit the bill.
- Rising Fuel Costs: As fuel prices continue to rise, people are opting for smaller, more economical bikes and scooters. Used vehicles are often seen as a budget-friendly option for first-time buyers or those looking for a secondary vehicle.
- Environmental Impact: More customers are looking at sustainable mobility options, and buying used vehicles reduces the demand for new manufacturing, contributing to a more eco-friendly transportation solution.
TVS Motor’s Vision for DriveX Mobility
With DriveX becoming a fully-owned subsidiary, TVS Motor plans to leverage the platform’s unique business model to capture a larger share of the pre-owned two-wheeler market. The integration of DriveX’s digital-first approach will allow TVS to reach a wide and diverse customer base, offering a seamless buying experience for customers who prefer to shop online.
Additionally, DriveX’s network of offline retail outlets provides customers with the ability to test, inspect, and experience vehicles before making a purchase—something that sets the platform apart from purely online models.
TVS’s long-term vision includes making affordable and reliable mobility options accessible to a broader audience. By focusing on the pre-owned segment, the company can tap into the growing demand for used vehicles across urban and rural India, expanding its reach beyond new bike sales.
TVS Motor and DriveX: The Perfect Match
TVS Motor’s collaboration with DriveX Mobility is a perfect fit. While TVS is already a well-established name in the two-wheeler industry, DriveX brings in digital expertise and a customer-centric approach. The combination of TVS’s manufacturing strength and DriveX’s innovative business model gives the company a significant edge in the competitive used vehicle market.
Moreover, DriveX’s refurbishment process ensures that each pre-owned two-wheeler meets high standards of quality and performance, which will be a huge selling point for customers. By combining technology with quality control, TVS is positioning itself as a trusted player in both the new and pre-owned segments.
The Road Ahead: Expansion and Growth
With the majority stake acquisition, TVS Motor is now well-positioned to scale DriveX Mobility’s operations. The company plans to expand its presence across more cities and regions, offering even more customers the chance to buy reliable, refurbished two-wheelers.
The partnership also opens up the potential for new offerings, such as vehicle financing, insurance, and warranty services, making DriveX a complete solution for customers looking for hassle-free mobility.
Furthermore, the digital-first model will allow TVS Motor to tap into the growing online customer base and provide a seamless end-to-end experience, from purchasing a vehicle to servicing and maintaining it.
What This Means for TVS Motor and the Indian Two-Wheeler Market
The pre-owned two-wheeler market in India is expected to continue its growth, and TVS Motor’s decision to increase its stake in DriveX is a clear signal of its commitment to this expanding sector. As India’s first Formula One driver, Narain Karthikeyan’s involvement with DriveX brings additional credibility to the platform, further appealing to the growing middle-class population looking for affordable, reliable transport.
With TVS Motor’s strength in manufacturing and DriveX’s focus on the pre-owned segment, this collaboration has the potential to reshape the future of mobility in India. The goal is clear: to provide more people with access to affordable, high-quality two-wheelers while addressing the rising demand for sustainable mobility solutions.
Conclusion: A Winning Formula for TVS Motor
TVS Motor’s acquisition of a majority stake in DriveX Mobility strengthens the company’s foothold in India’s rapidly growing used two-wheeler market. By combining DriveX’s digital-first approach with TVS’s manufacturing capabilities, the partnership is well-positioned for future growth.
With Narain Karthikeyan’s leadership and TVS Motor’s strategic backing, DriveX Mobility has all the tools it needs to lead the charge in the pre-owned two-wheeler sector, offering customers more affordable, reliable, and sustainable mobility options.
