TVS Motor plans ASEAN expansion from Indonesia

As TVS Motor Company looks to widen its global footprint, the automaker is eyeing more markets in the ASEAN region. The company plans to leverage its manufacturing in Indonesia to export its electric vehicles to other ASEAN markets.

“We will definitely start exporting our EV products to the ASEAN markets. Already, advanced testing and everything have been done there,” TVS Motor Director and Chief Executive Officer KN Radhakrishnan told investors in a post-earnings call on Tuesday.

TVS Motor has a presence in several countries across Asia, Africa, and Latin America regions. It has four manufacturing units, three in India and one in Indonesia, and multiple distribution centres in the overseas market. Exports account for around 25% of TVS Motor's turnover.

“We have our plant in Indonesia and local sourcing. We don’t see exports to ASEAN as a problem. Because the moment you have in Indonesia, then there is an ASEAN FTA (Free Trade Agreement). That will help us,” Radhakrishnan noted.

TVS Motor has launched five variants of electric scooters under the iQube range. It has plans to launch one more affordable electric scooter and a new electric three-wheeler towards the end of this year.

Other than focusing on EVs, expanding its international presence is a major pillar that TVS Motor is betting on for its future growth. “We aim to capitalise on the opportunities by deepening our international presence in the African, Latin American, European, Southeast Asian, and Middle Eastern markets,” Managing Director Sudarshan Venu said recently.

The company recently announced its entry into Europe, starting with France and Italy. It plans to initially introduce its premium electric and internal combustion engine two-wheelers.

In 2023-24, the company witnessed a decline in its exports to 8.9 lakh two-wheelers due to various challenging economic factors such as liquidity crunch and high inflation.

However, the management expects exports to recover gradually The expansion initiatives in Latin American, South East Asia, Middle East and European markets are likely to provide additional momentum. 

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