Expanding into Europe’s EV market, Indian automakers chase tech acquisitions and boost premium exports.
Indian automakers are stepping up their efforts to capture Europe’s electric vehicle (EV) market, with acquisitions and export strategies aimed at leveraging the region’s premium demand and struggling manufacturers.
TVS Motor’s recent €5 million acquisition of Italian design and engineering firm Engines Engineering S.p.A. marks the latest in a series of deals. The move will strengthen TVS’s global design hub in Bologna, Italy, and expand its premium offerings, complementing its British subsidiary Norton Motorcycle.
In July, Tata Motors bought the commercial vehicle business of Italy’s Iveco S.P.A. for $4.4 billion, while Bajaj took full control of Austria’s KTM in an €800 million transaction. Analysts suggest such acquisitions offer Indian firms a rare opportunity to access Europe’s advanced EV technology and premium segments, while European firms seek stability amid slowing growth and US tariffs.
According to the European Automobile Manufacturers’ Association, electric car registrations in the region are forecast to dip to less than 2 million units in 2024. However, the European e-bike market is projected to grow at a compound annual rate of 3.8%, reaching $25.1 billion by 2034.
Hero MotoCorp, India’s largest two-wheeler maker, is preparing to launch EVs in Germany, France and Spain in 2025–26. Similarly, Maruti Suzuki has already exported 2,900 units of its e-Vitara to the region, with Mahindra planning EV exports to the UK following a free trade agreement.
