TVS Motor Company Ltd is planning a major product offensive with introduction of variants of two wheelers from next fiscal in view of favourable growth outlook both in domestic and international markets.

After an impressive performance in December 2020 quarter, the company expects the growth trend to continue in the two-wheeler segment.

While there are multiple factors that will keep the rural economy robust, opening up of urban centres is a huge positive. Also, strong traction in international markets after Covid-19 is expected to support the growth momentum.

‘Low base effect’

“Q4 of this fiscal will see higher growth for two wheelers due to low base effect of last year (due to transition to BS-VI norms). We hope to grow better than the industry in Q4 too,” said KN Radhakrishnan, Director & Chief Executive, TVS Motor Company.

TVS Motor expects to incur a capex of ₹500 crore in product development and digital technologies, among others in FY22.

“We are planning a series of product launches during the first half of next fiscal. The product launches will include all-new vehicles and variants of existing models. On the EV front, iQube has received excellent response in Bengaluru. We will be launching iQube in many other cities. We are also investing in a series of new products in EV and these new EVs will be launched at an appropriate time,” said Radhakrishnan.

TVS Motor's two-wheeler sales in international markets are also doing well with pent-up demand and growing popularity of Indian brands In Q3, its international sales grew 31 per cent. “International markets are witnessing a very good growth due to stable oil prices and stability in exchange rates. We are witnessing more premiumisation in all international markets, helped by by a wide range of product portfolio,” he said.

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