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From the post-earnings call with K N Radhakrishnan, Director and CEO of TVS Motor Company, it is evident that the company is actively pursuing its plans to enter and expand its presence in the electric vehicle (EV) segment.
Here are the key highlights:
- Domestic EV Growth: The domestic EV two-wheeler industry has shown significant growth in FY23, nearly tripling its size. The reasons for this growth include increasing awareness of climate impact, improved total cost of operation, and government incentives and subsidies.
- FAME Scheme Compliance: TVS Motor Company is fully compliant with the requirements laid down under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) policy documents and Central Motor Vehicles Rules.
- Planned EV Product Launches: TVS Motor plans to launch a series of new EV products in the next nine to fifteen months, focusing on different customer segments. The company aims to offer a complete portfolio in the range of 5-25 kilowatts.
- Three-Wheelers: TVS is also developing electric three-wheelers for both passenger and cargo purposes, which are expected to be launched in the upcoming quarter.
Highlights continue
- Charging Infrastructure: TVS EV customers presently have access to more than 2,000 charging points through various charging network players.
- International Expansion: In the current year (2023-24), TVS Motor plans to explore international markets for its EV products.
- Collaboration with BMW Motorrad: TVS is jointly designing and developing urban EVs with BMW Motorrad for global markets. BMW Motorrad already introduced its CE 04 electric scooter in the US and European markets and aims to expand its presence in India, China, and other markets for electrically propelled bikes.
- Positive Outlook for Premium Motorcycle and Scooter Segments: The company is optimistic about the performance of the premium motorcycle and scooter segments, supported by improved urban demand.
- Long-term Growth Projection: The Indian economy is expected to increase significantly by 2030, with a real GDP growth rate in the range of 6-6.5 per cent. TVS Motor anticipates sustained industry growth, particularly in the two-wheeler segment, driven by a growing population with young demography.
- Export Growth: TVS Motor expects the export of two-wheelers to rebound after a weak performance in the previous year. It plans to expand its presence in LATAM, ASEAN, and the Middle East, supported by favourable factors like falling freight rates and better availability of containers.
- Supply Chain Issues: While the broader risk of supply chain disturbances is expected to be lower than in previous years, certain EV-specific components may still face challenges leading to delayed service levels and impacted financial performance.
Conclusion
TVS Motor Company is optimistic about its prospects in the EV segment and plans to expand its offerings and presence both within and outside India. It aims to capitalize on the growing consumer interest in EVs and the support from government policies and incentives.
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