Investments in EV, ICE products, tech to drive growth, says TVS Motor's MD

Building on a record-breaking financial year, TVS Motor Company is now banking on its investments in new electric and internal combustion engine products and technologies to drive the company’s revenue growth going forward. 

“TVS Motor considers its investments crucial for the future and aims to drive topline growth by investing in new products and various technologies to strengthen its EV and ICE capabilities,” Managing Director Sudarshan Venu said in his message to shareholders.

The automaker has lined up a capital expenditure of Rs 1,000 crore for the current financial year. Of this, around 70% will be spent on developing new two-wheelers and three-wheelers in both ICE and EV segments as well as digital capabilities.

The management believes both ICE and EV segments are set to gain from robust consumer demand for scooters. The scooter segment is driving the early state electric vehicle adoption in India. TVS iQube is among the top-selling electric scooters in the country. The company recently introduced three new variants to the iQube range, which now starts at Rs 84,999.

“We also understand that the scooter segment is likely to grow significantly, with market share projected to increase to 35-40%. This growth will create opportunities for both ICE and EV segments, allowing consumers to choose as per their convenience and comfort,” Venu said.

TVS’ strategic objectives include improving premiumisation across the portfolio by building new desirable solutions. The automaker also sees leadership in the electric vehicle business through developing innovative product formats and lowering the total cost of ownership by battery and propulsion system R&D.

In 2023-24, TVS Motor posted its highest-ever revenue and profit numbers. Profit rose to Rs 2,083 crore from Rs 1,491 crore in FY23. Revenue from operations grew 20 percent to Rs 31,776 crore as it sold over 40 lakh two-and three-wheelers vehicles while EV sales doubled to 1.94 lakh units.

The company expects “a greater demand surge” for two- and three-wheeler industries on the back of better road infrastructure and increasing mobility demands. “We aim to capitalise on the opportunities by deepening our international presence in the African, Latin American, European, Southeast Asian, and Middle Eastern markets,” Venu added.

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