In the rapidly evolving electric vehicle landscape, New Delhi-based EV technology startup Tsuyo Manufacturing is charting a decisive course for international growth, built upon a major expansion of its EV powertrain system exports primarily targeting the Asian market. The company’s strategy is a calculated and multifaceted response to a confluence of favorable geopolitical shifts, a deep understanding of its target markets’ unique economic and infrastructural realities, and a clear vision for diversifying its business model beyond conventional sales. By strategically positioning itself as a key non-Chinese supplier of sophisticated EV technology, Tsuyo aims to capitalize on India’s growing reputation as a reliable and innovative manufacturing and technology partner. This ambitious plan is not merely about increasing sales figures; it is about transforming regional demand into a significant and sustainable revenue stream while cementing the company’s role as a pivotal player in the global transition to electric mobility. The firm’s approach integrates aggressive fundraising, targeted market entry, and the development of novel service models to create a robust framework for sustained international success.
Capitalizing on Geopolitical Tailwinds
A central pillar of Tsuyo’s expansion strategy is its astute response to the shifting geopolitical dynamics across Asia, where a growing number of customers in Southeast Asia and other key regions are actively seeking reliable alternatives to their traditional Chinese suppliers. According to CEO and Founder Vijay Kumar, this trend has created a significant market opening for Indian companies, as India is increasingly being perceived as a “trusted partner” in technology and manufacturing. Tsuyo is poised to leverage this burgeoning sentiment to its full advantage. The company has observed a tangible increase in the openness of Asian markets to sophisticated Indian technology, particularly within the complex domain of EV powertrain systems. This strategic pivot is directly reflected in the company’s aggressive revenue targets. Tsuyo has set a firm goal to increase its export revenue from the current 1.5-2% of its total revenue to a substantial 8-10% within the next two years, representing a formidable scaling of its international operations and a clear commitment to becoming a dominant regional supplier.
This proactive strategy extends beyond simply filling a void in the supply chain; it is about building a lasting reputation for quality and reliability. The company’s leadership recognizes that the current geopolitical climate offers a unique window of opportunity to establish deep-rooted partnerships and demonstrate the superiority of its technological solutions. By focusing on markets that are eager for diversification, Tsuyo is not only securing new revenue streams but is also contributing to the creation of more resilient and varied regional supply networks for critical EV components. This approach is designed to be both opportunistic and sustainable, capitalizing on immediate market needs while laying the groundwork for long-term growth. The company’s ability to understand and navigate these complex international currents will be crucial as it works to solidify its position as a leading non-Chinese provider of advanced EV powertrain technology in the highly competitive Asian market, turning a geopolitical shift into a powerful engine for corporate expansion.
A Methodical and Targeted Global Rollout
Tsuyo’s expansion into the global market is not a sudden, impulsive move but rather the carefully orchestrated culmination of a phased, three-year strategy designed to mitigate risk and maximize success. The company initiated its international operations by first entering the Sri Lankan market, a deliberate choice that allowed it to test and refine its export processes in a controlled environment. Following this initial foray, Tsuyo methodically expanded its direct export footprint to include Bangladesh and the Philippines. These markets were strategically selected because their local transportation ecosystems, particularly the widespread prevalence of three-wheelers and light commercial vehicles (LCVs), closely mirror the Indian market. This alignment allows for the seamless integration of Tsuyo’s products without the need for extensive and costly redevelopment, ensuring a natural product-market fit and a faster path to profitability. This step-by-step approach has provided invaluable experience and has built a solid foundation for the more ambitious expansion plans now underway.
In addition to its direct export channels, Tsuyo has intelligently diversified its international presence through an indirect export model, establishing key partnerships with Original Equipment Manufacturers (OEMs). Through these collaborations, Tsuyo’s advanced components are integrated into vehicles that are subsequently sold in highly developed and competitive markets, including South Korea, Japan, the United States, and Germany. This strategy provides the company with valuable access and brand exposure in mature markets without the immense upfront investment required for a direct entry. However, for certain regions identified as strategically critical, such as the United States, the company is adopting a more measured and cautious approach. Instead of committing to a large-scale launch immediately, Tsuyo is utilizing targeted pilot programs. These initiatives are designed to test the market, gather essential performance data, and establish a firm foothold before a full-scale commitment is made, demonstrating a sophisticated, risk-managed approach to global expansion.
Securing Capital and Forging Key Alliances
To adequately fuel its ambitious domestic and international expansion plans, Tsuyo is actively preparing for a significant infusion of capital. The startup is in the advanced preparatory stages of a new fundraising round, with a clear objective of raising approximately $18 million to $20 million over the course of the next 12 to 18 months. This fresh capital has been earmarked for two primary and synergistic objectives: first, to substantially expand its manufacturing capacity to meet the anticipated surge in demand from both its growing domestic customer base and its newly targeted international markets, and second, to significantly strengthen its technological capabilities. This enhancement of its tech stack is crucial for facilitating the company’s planned growth into larger and more complex vehicle segments that extend beyond its current focus on three-wheelers and LCVs. This forward-looking financial strategy builds upon a recent track record of success; the company recently closed a $4.5 million funding round led by Avaana Capital, an event that signals strong and growing investor confidence in its robust business model and its clear trajectory for future growth.
The technological prowess that underpins Tsuyo’s product offerings is significantly bolstered by a network of strategic collaborations, most notably its key partnership with the China-based firm LVKON Transmission. This vital alliance enables Tsuyo to provide highly advanced and reliable electric powertrain solutions to leading manufacturers of three-wheelers across both the L3 (low-speed) and L5 (higher-speed) vehicle segments, which are critical categories in many of its target Asian markets. This partnership ensures that Tsuyo remains at the cutting edge of powertrain technology, offering its clients access to world-class components and systems. Furthermore, the company is actively engaged in discussions and development projects with several major commercial vehicle manufacturers. This signals a clear and deliberate intent to move up the value chain into heavier and more demanding vehicle categories, a strategic move that will significantly broaden its market scope and solidify its position as a comprehensive provider of EV solutions for a wide range of applications.
Innovating Business Models for a Broader Impact
Beyond its core business of designing and selling new powertrain systems, Tsuyo has astutely identified the vehicle conversion, or retrofitment, market as a “promising” and substantial area for future growth. This strategy is particularly relevant and timely in India and other developing economies, where a large and aging fleet of three-wheelers and LCVs is facing increasingly strict and impending emission regulations. Retrofitting existing internal combustion engine vehicles to electric offers a highly cost-effective and practical solution for vehicle operators, typically costing only 25-30% of a new vehicle’s price for smaller vehicles and up to 40% in certain cases. CEO Vijay Kumar strategically views retrofitment not as a competitor to new vehicle sales but as an essential “transitional process.” He argued that in a middle-income economy, it is unrealistic to expect all fleet operators to afford to replace their vehicles overnight. Retrofitting serves as a crucial “bridge,” enabling a faster, more inclusive, and economically viable transition to electric mobility. Tsuyo has clarified that it will not operate as a direct retrofit service provider but will instead position itself as a critical “technology and hardware enabler” for this burgeoning market.
Building on this diversified strategy, the initiatives at Tsuyo had culminated in the pioneering of an innovative “Motion-as-a-Service” (MaaS) model. This concept was developed to move beyond the conventional “Battery-as-a-Service” model by bundling the battery and the powertrain together as a single, unified, and conveniently financed kit. This integrated approach fundamentally shifted the focus from the reliability of just the battery to the guaranteed performance of the entire propulsion system. As Kumar astutely put it, “Why battery as a service? The whole vehicle is in motion.” The MaaS model, which was fueled by robust performance guarantees, aimed to provide customers with much better visibility over the total asset value throughout its lifecycle. It also enhanced the potential for asset redeployment, which ultimately helped to accelerate the widespread adoption of electrification by making the transition more financially transparent, reliable, and accessible for a broader range of customers and fleet operators.
