Companies

Despite Covid second wave, TVS Motor plans to charge up its EV range in FY22

G Balachandar Chennai | Updated on May 03, 2021

KN Radhakrishnan, Director & CEO, TVS Motor Company

Cautious on Q1 demand, but bullish on international sales growth

TVS Motor Company plans a slew of new product launches including expansion of its electric vehicle range in FY22 even as the leading two and three-wheeler maker expects weak sentiments and drop in sales in this quarter due to the second wave of Covid-19.

In FY21, the two-wheeler industry recovered in the second half after the disruptions caused by the pandemic in the first half. With good rural demand, the industry expected momentum to continue in this fiscal too.

But the second wave of the coronavirus forced authorities to resort to localised shut downs and restrictions. These are likely to impact customer sentiments and dampen Q1 sales.

“We are cautious about Q1 due to Covid second wave. We believe that the adverse impact on the economy will be short term and minimal as we hope vaccinations for the above 18 age group and other measures will help the economy bounce back faster. Two-wheeler industry will bounce back in Q2 and resume good growth in Q3 like last time,” said K N Radhakrishnan, Director & CEO of TVS Motor Company.

₹600-crore capex

The company is expected to incur a capex in the range of Rs.500-600 crore this fiscal largely on electric vehicles, new products and emerging technologies. It is also planning a series of new launches in this fiscal. EV portfolio will also be expanded.

The company is selling 250-300 units of its electric scooter iQube per month in Bengaluru. It recently launched the product for the New Delhi market.

“We happy to state that our iQube is doing well and we are working on a capacity ramp up. We plan to make our electric scooter available in more than 20 cities this year,” said Radhakrishnan.

Though the second wave poses short term challenges, the growth outlook is reported to be bright for the two-wheeler industry.

Also read: TVS Motor’s Q4 profit zooms on strong growth in domestic, global sales

“In view of more preference for personal mobility on the back of distancing norms, we expect the demand for two wheelers to be robust over the mid-term,” said Radhakrishnan. “Also, like last year, we are expecting a normal monsoon this year. All reservoirs are full and the agri sector is expected to grow this year too. This will definitely help the rural market, which will drive two-wheeler sales,” he added.

International sales

TVS Motor is also bullish on international sales growth. It expects good growth in exports in FY22 helped by growing consumption and stable economic and political situations across markets.

“In all key geographies TVS Motor operating, stable crude oil prices will have a positive impact on the oil-dependent economies of Africa, South and Central America and as a result we expect good growth in this fiscal,” he added.

TVS Motor’s global sales grew a whopping 74 per cent in March 2021 quarter ahead of industry growth of 33 per cent.

For the first time, the company’s international two-wheeler sales crossed one lakh mark in March 2021.

Published on May 03, 2021

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