TVS Motor eyes Rs 900-1,000 crore capex in 2023-24

The company's Company’s new EV 3-wheeler will hit the market this year.

By T E Narasimhan calendar 12 May 2023 Views icon4168 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

The country’s second largest two-wheeler maker TVS Motor said that its capex would be around Rs 900-1000 crore and investments to the tune of around Rs 700 crore in 2023-24. The company also said its electric three-wheeler will be launched in the upcoming quarter.

During the recent post-earnings call, K N Radhakrishnan, Director and Chief Executive Officer of the company said that capex includes EV plus ICE (internal combustion engine). Between ICE plus EV, the capex will be close to Rs 900-1,000 crore.  Investments will be to the tune of about Rs 700 crore.


TVS Motor’s revenue in 2022-23 grew by 27 percent to Rs 26,378 crore from Rs 20,791 crore, last year and profit grew to Rs 2,003 crore from Rs 1,2343 crore.

Despite various headwinds and challenges in significant shortages during the first half of the year, and challenges in the international market during the second half of the year, the company performed well, said Radhakrishnan.

The company crossed 3.5 million units of two-wheeler sales with retail sales growing ahead of the industry, both in domestic and international markets.

Domestic ICE two-wheeler sales numbers grew by 23% against the industry growth rate of 16%. Domestic EV sales dispatches were at 97,000 as against 11,000 during the last year.

Profit, the operating EBITDA for the year is higher at 10.1%, compared to 9.4% of last year. During the year, the company posted the highest ever PBT with a growth of 61%, Rs 2,003 crore as against last year's Rs 1,243 crore, and profit after tax for the year grew by 67% from Rs 894 crore to Rs 1,491 crore.


Radhakrishnan said, during the year, the domestic EV two-wheeler industry saw robust growth of almost 3.1x. The growing sensitivity to climate impact and improved total cost of operation, proposition for accelerated consumer interest and thanks to the Government, the FAME II, enhancement, state subsidy, and another EV-related infrastructure initiative of the government, reinforced consumer base and the segment.

During Q4, TVS Motor delivered 43,000 numbers resulting in a share improvement quarter-on-quarter. Presently, the company’s order book is close to 30,000 units. TVS Motor has over 1 lakh EV customers now.

He said TVS is planning to launch a series of new products, focusing on different customer segments with a complete portfolio in the range of 5-25 kilowatts in the next 9 months to 15 months.

“Electric three-wheelers, both passenger and cargo, are getting ready, and will be launched in the upcoming quarter,” said Radhakrishnan.

He added, TVS EV customers presently have access to more than 2,000 charging points with various charging network players.

Commenting on FAME, he said, the company has fully complied with all requirements laid down under the FAME policy documents and CMVR.

“This is the investment time, both in the products and in areas of investment in terms of marketing, in terms of people, in terms of every element of that. So, we are extremely happy with the progress of EV,” said Radhakrishnan.

He added that the company wants to now launch many products in the EV segment, including the three-wheeler.

“This year (2023-24) is going to be a very important year because we will also start looking at some of the international markets. So, this year is going to be another milestone year in the EV segment. I would like to say that,” said Radhakrishnan.


In the urban market, the company is witnessing a very good pickup, while there are challenges in the rural, but overall, if the monsoon is likely to be better this year, then the rural areas will come back.

“The sentiments are coming back and all of us know that this is the first year with lesser challenges on the semiconductor. In the first quarter of last year, we had serious setbacks. Now, from the consumer point of view, 125cc segment in the market is doing extremely well,” said Radhakrishnan.

“As an industry, I am saying, Raider is very welcome in the market and customers are delighted with Raider. Jupiter 125 is also much liked in the market. NTORQ is in the 125 segments. So, overall, I think that is the place where we have very hit products and we are confident about growing ahead of the industry there,” Radhakrishnan said.

On the premium segment, he said, “Apache continues to do well and Ronin, as you know, it is a special category. It has started doing well in many markets. Average, TVS is doing about 2,000-2,500 every month and it will continue to go up in the coming months”.

The company started Raider with 10,000, then it increased to 15,000 to 20,000, and then last quarter it increased to over 30,000.

“So, we are constantly looking at market demand. Demand has to be ahead of the capacity and production so that we are able to fulfill the demand. And we are also getting better capacity utilisation. So, Raider, we are constantly reviewing and supporting the market, and Raider is a great brand, both in domestic and internationally,” said Radhakrishnan.

Jupiter 125 also grew. Month after month, now on average, the company is doing about 25,000 plus, and there is good headroom to grow.

These two products are likely to grow further in the future month. In the industry also, we are doing extremely well in the 125cc. So, 125cc is a welcome change in the industry and the market, and TVS has got two great brands.

He also added that between Raider, Jupiter 125, NTORQ, the company will further strengthen the the 125 cc.


“Our industry outlook, '23-'24, we are expecting the GDP growth to be around 5.5%. Urban recoveries are visible. However, rural recovery is slow, but we are expecting that it may take more time. What is most critical is the monsoon. The improving road infrastructure, and economic environment with our current mass transit system will drive the demand for mobility for the masses,” said Radhakrishnan.

He added the growing population with young demography will support sustained industry growth, especially for two-wheelers. The mobility demand is best served by the two-wheeler category, and I am pretty sure that in the medium to long term, India is expected to witness a double-digit CAGR on two-wheelers.

Majority of the international markets will likely see growth, especially in the second half of the year. The EV industry will continue to grow rapidly as consumer industries but with active policy support from the Central and State Governments through PLI, FAME II and specific support from the state policies.

On plans for '23-'24, TVS will continue to invest in new products and will see many new product launches in ICE and EV segments, both in two-wheeler and three-wheeler this year from the company.

The existing premium model Apache series continues to maintain growth momentum. Scooter policy consisting of Jupiter 110 and NTORQ will also see further growth.

“Sharp focus on premium products, material cost reduction, optimisation of fixed cost and we are confident that the same intensity drive will continue in '23-'24 and we will further strengthen to deliver better EBITDA in the year '23-'24,” said Radhakrishnan. 

“It's going to be a very good year, ‘23-24 for TVS. Quarter after quarter, we have seen last year, we have scaled up. You will see the same thing in Q1 of this year, Q2 doing better than Q1, Q3 doing better than Q2, that kind of timeline we have put”, he stated. 

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