TVS Motor Company has increased its stake in DriveX, the pre-owned two-wheeler platform founded by Narain Karthikeyan, to 92.41%. As the venture aims to organize the fragmented used motorcycle market, it is prioritizing rapid expansion over immediate profit. While the company recorded a turnover of nearly ₹60 crore in FY25, it continues to post losses due to heavy investment in infrastructure and store networks.
TVS Motor Company has further tightened its hold on DriveX Mobility, the pre-owned two-wheeler venture co-founded by former Formula 1 driver Narain Karthikeyan. The automotive major completed an additional stake acquisition in April 2026, bringing its total ownership to 92.41%. This move signals a deeper commitment to integrating the startup into its broader ecosystem, focusing on capturing the growing market for used motorcycles in India.
Scaling an Organized Pre-Owned Market
DriveX operates by bringing professional standards to the traditionally unorganized pre-owned two-wheeler segment. Instead of just listing vehicles online, the company has built physical infrastructure for inspecting, refurbishing, and providing documentation for motorcycles. This approach is designed to build trust for customers who previously had to navigate a fragmented market with little transparency. By leveraging TVS Motor’s operational expertise, DriveX is executing an aggressive plan to open more outlets and build a presence across the country.
Prioritizing Growth Over Profit
For those analyzing the company, the current financial picture is defined by heavy spending to capture market share. In the financial year 2024-25, DriveX reported a turnover of approximately ₹59.97 crore. However, the company is not yet profitable, reporting a net loss of ₹46.33 crore for the same period. This financial performance is a direct result of the company’s decision to prioritize physical infrastructure development and outlet expansion over immediate earnings. The cost of setting up technical centers and a retail network remains the primary driver of these losses.
Risks and Future Monitorables
The path ahead involves significant execution challenges. Transitioning an unorganized market into a formal, structured one is resource-heavy and takes time. DriveX faces the risk of cost overruns as it aims to scale its network toward its ambitious target of 500 outlets by 2027. Additionally, the pre-owned vehicle sector is sensitive to broader economic changes and commodity inflation, which can impact both the demand for used vehicles and the cost of refurbishment. Market observers will likely watch how efficiently the company manages its capital as it continues to scale, specifically looking for signs of improving operational efficiency that could eventually lead the venture toward profitability.