TVS Motor hopes to weather lockdown storm

Two- and three-wheeler maker hopeful there won’t be an encore of last year when India went into a complete lockdown. 

By Shahkar Abidi calendar 29 Apr 2021 Views icon7270 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

While local lockdowns could impact operations in the first quarter of this fiscal, TVS Motor is hopeful that it will not be an encore of last year when the country went into a complete lockdown. 

This time around, there are some positives in the form of the vaccination drive and strong rural demand. In a recent conference call, KN Radhakrishnan, Director and CEO, said the management continues to monitor the pandemic situation closely. TVS Motor has earmarked capex of Rs 500-600 crore and another Rs 250-300 crore in emerging technologies and products this fiscal.

These include electric vehicles, digital initiatives etc while nearly half of the new investments will be in TVS Credit Services, the retail finance arm. With commodity prices increasing by about 1.5 percent during Q3 of FY21, the company had also hiked vehicle prices by about one percent followed by a 1.6 percent hike on April 1. 

However, commodity prices had increased by 1.9 percent and the management expects the balance 0.3 percent to get mitigated through greater focus on premium bikes, increasing localisation/exports and implementing more cost reduction initiatives.

TVS Motor’s revenue from operations grew 53 percent to Rs 5,322 crore in  in the January-March quarter from Rs 3,481 crore las year. Profit after tax was up nearly four-fold to Rs 289 crore from Rs 74 crore.


Tags: TVS Motor Co
Kia India sells 18,766 units in May, Sonet and Carens outsell Seltos

auther Autocar Pro News Desk calendar01 Jun 2023

Growing demand for Sonet compact SUV sees it drive ahead of the longstanding best-seller Seltos for the fourth month in ...

Tata Motors’ car and SUV sales rise 6% to 45,984 units in May

auther Autocar Pro News Desk calendar01 Jun 2023

The seven-model portfolio Tata Motors sees demand moderate to single digit in a month which saw the launch of the Altroz...

Mahindra & Mahindra sells 32,883 SUVs for 23% growth in May, order backlog grows to 292,000 units

auther Autocar Pro News Desk calendar01 Jun 2023

M&M’s sales would have been higher but the company continues to be impacted by chip supply constraints; order book swell...