TVS Motor Company, a leading two- and three-wheeler maker, proposes a capex of about ₹1,000 crore in FY25 and will introduce a new range of two- and three-wheelers (both in ICE and battery segments), starting with the launch of multiple variants of its electric scooter iQube.

The company, which posted its highest-ever vehicle sales, revenue and net profit in FY24, doubled its electric two-wheeler (iQube) sales from 97,000 units in FY23 to 1.94 lakh units in FY24, with cumulative volumes surpassing three lakh units. iQube is now available at 700-plus touchpoints, up from 300 plus in July last year.

“We will be coming out with new variants to provide different battery capacities and price points, based on customer insights, KN Radhakrishnan, Director and CEO, TVS Motor Company, said during the Q4FY24 earnings call.

“FY25 will also witness the launch of the company’s new electric three-wheeler and other new launches both in the ICE and electric vehicle segments. “All our electric products will be sold both in domestic and overseas markets. We have been exporting our iQube to several markets in the Asian region,” he added.

TVS Motor is set to start deliveries of its premium electric scooter – TVS X, a new sporty and premium crossover electric two-wheeler that was unveiled in Dubai last year, in the next few weeks. “With a well-planned EV product line-up and improvements in supply chain and infrastructure, we are confident that we will continue to be a strong player in the EV segment,” said Radhakrishnan.

Given the new product launches and associated developments, the company is maintaining a strong capex of ₹1,000 crore for this fiscal. In April 2024, TVS Motor Company was awarded the PLI scheme for its two-wheelers in the EV portfolio.

Record performance

FY24 marked a record year for TVS, with total sales exceeding four million units for the first time, reaching 4.19 million units, a 14 per cent increase over the previous year. Domestic two-wheeler sales grew 19 per cent compared with the industry’s 13 per cent growth.

The company’s standalone revenue grew 20 per cent to ₹31,776 crore in FY24 (₹26,378 crore). While operating EBITDA grew to ₹3514 crore (₹2675 crore), profit after tax (PAT) grew 40 per cent at ₹2,083 crore (₹1,491 crore). In the March 2024 quarter, the company’s revenue rose 24 per cent to ₹8,169 crore (₹6,605 crore), while PAT stood at ₹485 crore (₹410 crore).

In FY24, the company generated an operating free cash flow of about ₹2,300 crore and after meeting the capex and the investments made done overseas, the company cut its debt by ₹1,000 crore.