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Informist, Tuesday, Jul. 21, 2026

 

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--TVS Motor: Africa continues to be key driver of export growth 
--CONTEXT: Comments by TVS Motor's mgmt in post-earnings analyst call 
--TVS Motor: Will continue to grow ahead of industry in Asia 
--TVS Motor: Investing in premium pdts, brand building 
--TVS Motor:  TVS Raider is getting introduced in Egypt 
--TVS Motor: Started production of Norton models in Hosur plant 
--TVS Motor: See double-digit growth in two-wheeler sales in Q2 
--TVS Motor: Growth momentum in Q1 to continue in Q2 
--TVS Motor: Expect better growth in intl mkts on back of capacity expansion 
--TVS Motor: Expect cost optimisation benefits to continue in Q2 
--TVS Motor: Looking at opportunities to 'rightly' increase prices in Q2 
--TVS Motor: Saw cost pressure from West Asia war in Q1 
--CONTEXT: TVS Motor on commodity price increase 
--TVS Motor: Scooter market shr in India is 40%, expect this to grow further 
--TVS Motor: Targeting 25-30 days in inventories 
--TVS Motor: FY27 to be extremely good; will be watchful of Q3 with El nino 
--TVS Motor: Expect industry to register double-digit growth in FY27 
--TVS Motor: To invest INR 35 bln in new pdts, capacity expansion 
--TVS Motor: Exports contribute 26% to co's turnover; expect it to grow

 

By Arya S. Biju and Astha Oriel

 

MUMBAI – After reporting a strong growth in its electric vehicle sales in the June quarter, TVS Motor Co. Ltd. now expects to carry this momentum forward in the September quarter with continued improvement in EV adoption, its management said in a post-earnings call with analysts Tuesday. "The Q2 (Jul-Sept) is also going to be good in terms of the overall (sales). In my opinion, it could be slightly better than Q1 and EV can keep up the same momentum or slightly better," a top company official said in the call. 

 

During June, the EV penetration was over 10.6%, the management said, adding that it is a good indication that consumers are considering EVs in "a big way". In Apr-Jun, the company sold 129,940 electric two-wheelers, up 86% on year. The company currently has an electric vehicle capacity of 40,000 units and is moving towards more than 50,000, the management said.  

 

Overall, the company expects 2026-27 (Apr-Mar) to be an "extremely good" year, with the industry seen reporting double-digit growth on healthy demand and strong EV sales. "While there are challenges on consumer progression and some elevation in terms of the food and energy prices, the demand looks very, very strong. The domestic demand, supported by the GST rationalisation and some of the relief coming from the income tax and also affordability is going to help us," K.N. Radhakrishnan, director and chief executive officer of TVS Motor Co., said. He also expressed confidence that the same demand momentum will continue in the September quarter. 

 

Similarly, the company expects strong international sales to continue in the September quarter, supported by its investments in capacity expansion. "We remain focused on strengthening our international footprint through market expansion, product portfolio enhancement and deeper channel engagement while continuing to capitalise on growth opportunities across emerging export markets," Radhakrishnan said. The company continues to invest in premium products and brand building initiatives, he added. 

 

During the June quarter, the international business grew 33% on year to 470,000 units, driven by sustained demand across key international markets. "We are investing in capacity (expansion) and we are confident that we will be able to significantly improve this number quarter after quarter for 2 wheelers, equally on three wheelers," Radhakrishnan said. Exports contribute around 26% to the company's turnover and this is expected to growth further going forward, a top company official said. The company said it is seeing good traction in its HLX series in the international market. 

 

Africa continues to be a key driver of export growth, supported by focussed demand for two-wheelers and three-wheelers. "That region ...has started doing well for us. We are growing ahead of the industry, the company management said. With the launch of TVS Raider in Egypt, the company now expects further strengthening of its presence in the North Africa region. The company also saw strong sales in Asia during the June quarter and expects sales from the region to continue growing ahead of the industry. The company is now present in most Latin American countries and will start investing in marketing and products in the region, he added. 

 

The company aims to expand its overall installed annual production capacity to 8.3 million units from the current capacity of 6.8 million and its three-wheeler capacity to 42,000 units from the current 25,000. It plans to invest around INR 35 billion in capacity expansion and new product launches, a top company official said. 

 

During the June quarter, the company saw a sharp increase in raw material costs with supply chain disruptions impacting availability amid the West Asia war. Raw material supply for the company was impacted in April. It recovered in May and was much better in June, the company said, adding that it expects this momentum to continue in the September quarter. It expects benefits from its cost optimisation measures to continue in the current quarter, while looking at opportunities to "rightly give price increases."

 

Answering a query on the company's comfortable inventory position to meet retail demand, TVS Motor said it keeps an inventory target of maximum 25-30 days with dealers. "Maybe another 4-5 days more (during festival season), but otherwise, month after month are always below 30 days," a top company official said. 

 

The company also highlighted that the market share of scooters in India is 40%, and it expects this to grow further. The company is seeing growing traction for scooters, especially in rural India.  

 

TVS Motor said it will continue to invest in its premium and super premium product segment. So far in the past 4–5 years, it has invested around INR 25 billion in its super premium Norton brand, the company management said. Production of Norton models has started in its Hosur facility. It plans to launch four Norton models, made under the TVS motor in UK, France, Italy, Germany, Spain, and India, and later this year in the US. "Norton motorcycles have marked the rollout of the first Atlas models at TVS motor company's Hosur manufacturing facility in June...and very confident that you will see this product in the next quarter," a top company official said. 

 

Earlier in the day, the company reported a net profit of INR 11.74 billion for the June quarter up 51% on year and better than the INR 10.13 billion estimated by the Street. The company's revenue from operations for the quarter grew 38% on year to INR 138.96 billion also beating the INR 135.97 billion estimated by the Street. Tuesday, shares of the company closed 5.6% higher at INR 3,792 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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