More Stories

Informist, Wednesday, May 13, 2026

 

Please click here to read all liners published on this story

--TVS Motor: Focussing on Latin American region for exports in FY27 
--CONTEXT: Comments by TVS Motor's mgmt in post-earnings analyst call 
--TVS Motor: Hope to post better growth than industry in Apr-Jun 
--TVS Motor: Facing cost pressures from steel, aluminium, crude derivatives 
--TVS Motor: Looking at improving cost structure in wake of West Asia war 
--TVS Motor: Expect to post good single-digit growth in FY27 
--TVS Motor: Raised prices in Q4 to pass on cost surge due to West Asia war 
--TVS Motor: Going ahead may raise prices further for some models if needed 
--TVS Motor: See return to normative stocks with dealers by Jun first week 
--TVS Motor: See total capex for FY27 at INR 35 bln 
--TVS Motor: Facing 3-5% cost inflation due to West Asia war 
--TVS Motor: Expect growth momentum in export markets to continue in FY27 
--TVS Motor: Will develop country-specific pdts in export markets 

 

By Avishek Rakshit & Shweta

 

KOLKATA/NEW DELHI – Riding on expectations of persisting domestic consumer demand and steady recovery of demand in export markets, TVS Motor Co. Ltd. is eyeing a good single-digit sales growth in the current financial year, a senior company official said Wednesday. The company, in fact, aims to outpace the industry's growth.

 

"We are expecting good single-digit growth this year and we are seeing growth momentum," Chief Executive Officer K.N. Radhakrishnan told sector analysts in a post-earnings conference call.

 

Radhakrishnan said he is bullish on domestic consumer demand in the June quarter continuing its growth momentum in line with the trends seen in the March quarter. Stating that consumers will need to commute irrespective of macroeconomic conditions, he said the cut in goods and services tax on two-wheelers from 28% to 18% boosted demand.

 

Despite predictions of reduced rainfall in India this year on account of the El Nino climate pattern, Radhakrishnan said he remains hopeful of rural demand as the water level in reservoirs remains high. Industry officials across sectors have been insisting that in case of a shortage of rainfall, higher water levels in reservoirs lower the risk of an acute crop failure, in turn arresting a fall in rural demand and helping farmers to hold on to their consumption patterns by assuring them of steady income from saleable crops.

 

Radhakrishnan also remains hopeful of demand in the company's export markets in Africa, South Asia, and Latin America. "Last year, we saw good growth," the chief executive officer said. "I'm very sure this year also, you'll see similar growth and the momentum will continue."

 

While TVS Motor has a strong presence in Africa, the continent presents enough headroom for growth, just like West Asia. However, in the Latin American region, the company is yet to see substantial sales and is looking to establish a foothold in the region, the top executive said, adding that TVS Motor will focus on the region from this financial year onwards. 

 

"There is huge headroom in Africa and Middle East," Radhakrishnan told the analysts. "We want to further strengthen Africa and Middle East and strengthen, put a strong foundation in LATAM (Latin America) to grow it."

 

TVS Motor is now looking to rope in good distributors in the Latin American region and also invest in the brand to increase its visibility. It will take 2-3 years to achieve the same, he said.

 

While the company is focussing on the Latin American region, it is also aiming to grow in India's neighbourhood and will be rolling out country-specific products. "Asia is also doing well now," he said. "Sri Lanka is fully back on track. Nepal is doing extremely well. (In) Bangladesh, there are some changes we have brought in and the export will start soon." 

 

"This month is going to be better and we are confident that in Q1 (Apr-Jun), we will post a very good growth, better than the industry," Radhakrishnan said. 

 

However, he cautioned that the West Asian crisis has led the company's costs to surge 3-5% on year, which is significant. While the company has raised prices to mitigate some cost pressures, it may raise prices further if the volatility in commodity prices increases. In particular, TVS Motor is facing cost pressures from steel, aluminium, and crude derivatives, all used in the manufacture of vehicles. 

 

However, price increase is not the only option for the company. While it is looking at improving its cost structure to curtail the costs, the company is also aiming at economies of scale and higher sales volume, which can protect its margins. 

 

"I always believe that pricing is only one element," Radhakrishnan said. "We always look at the value what we are giving to the customer in terms of TCO (total cost of ownership), in terms of attractiveness, in terms of technology, in terms of connectivity... And when you grow the top line ahead of the industry, that is also going to give you many benefits." He added that the company is eyeing a return to its normative dealership stock levels of 21-30 days by the first week of June. 

 

For the current financial year, TVS Motor will be investing around INR 35 billion to increase capacity and visibility across domestic and export markets. "Our focus on product development and new products will continue," the chief executive officer said. "That will be around close to 2,000 crores (INR 20 billion). Another additional investment is, we are adding another 1.5 million of capacity. That will be about 1,000 crores plus (INR 10 billion). So all put together, the capex for next year (FY27) will likely be around 3,500 crores (INR 35 billion)," he said. 

 

Wednesday, shares of TVS Motor closed around 1% lower from Tuesday at INR 3,527.20 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.