According to Chairman Ralf Dieter Speth, TVS has been evolving into a high-tech global mobility corporation, with electric vehicles serving as the cornerstone of its future growth.
Going forward, the automaker anticipates that the company’s revenue growth will be driven by investments in new electric and internal combustion engine vehicles and technology. In its pursuit of globalization, the corporation is also concentrating on geographic expansion.
“At TVS Motor, we are gearing up for exciting times ahead as we transition to a high-tech, global, and smart mobility company,” Speth told shareholders in the company’s annual report of 2023-24. “Our focus on electric vehicles as one of our future growth enablers fits perfectly with our 2030 vision,” he noted.
Speth believes the global two-wheeler market has substantial advancement with increasing demand from developing countries for innovative mobility solutions, an expanding e-commerce sector, shared micro-mobility services, and a growing young workforce with rising disposable incomes.
Advantages such as lower total cost of ownership, advanced technology and reduced environmental impact are driving the transition in the industry to electric vehicles along with government regulations.
TVS is also charting its course to capitalise on the growing two-wheeler markets including Europe, Africa, Latin America, Southeast Asia, and the Middle East by deepening its presence.
The company is entering Europe, starting with premium electric and ICE two-wheelers in France and Italy. “We are excited about our strategic entry into the European market which marks a significant milestone in our journey as a truly global brand,” Managing Director Sudarshan Venu said.
Some of its priorities include building products and solutions for new and diverse use cases and investing and building sustainable solutions for commercial mobility, besides providing services and solutions for commercial fleet owners.
The company is also looking to create a premium brand experience and a global community of riding enthusiasts and build new solutions to make TVS an aspirational global brand.
“With our technology adoption, strategic partnerships, and a start-up mindset within the organisation, we are confident in our leadership and our ability to delight the ‘new-age customer,” Speth said.
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. The robust set of results came as the automaker sold over 40 lakh two-and three-wheelers vehicles during the financial year.
TVS Motor also doubled the sales of electric vehicles during the period, to 1.94 lakh units. 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 begins at Rs 84,999.
Exports account for around 24% of TVS Motor’s total turnover. The company witnessed a decline in its exports during the previous financial year to 8.9 lakh two-wheelers due to various challenging economic factors such as liquidity crunch and high inflation.
The management expects exports to improve going forward as the economies are expected to recover from the global economic slowdown. The expansion in global markets is also likely to provide further momentum.
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