The stock of TVS Motor traded 2.07 percent higher to Rs 818 apiece, as against 0.6 per cent drop in the S&P BSE Sensex to 52,820.76 levels when the market opened. Not only this but in the past five days, the stock price of auto-maker surged over 10 per cent, as against 1.6 per cent rise in the S&P BSE Sensex. Meanwhile, the stock surged over 30 per cent so far in the calendar year.
Now this has happened as the company plans to introduce EVs under the 5 to 25 kilo watt range for its two and three-wheelers segments. Till now, TVS Motors has launched three variants of iQube, electric two-wheeler, with an on road range of 140 kilometer in a single charge. Additionally, they have also extended iQube’s presence across 33 cities by the end of the current fiscal year.
Seizing the big opportunity in EVs, the management said that the company will leave no stone unturned to grasp investments in the field of this growing new technology. Mr. Sudarshan Venu, Managing Director of TVS Motor, at the company’s annual general meeting (AGM) stated that:
“EVs offer a large opportunity and TVS is investing a lot to grasp this opportunity. Wherever we go, we will do it in partnership with service and in those regions fully equipped to service and offer spare parts to customers”.
Sudarshan Venu, Managing Director of TVS Motor
This is just the beginning of the tip, the company will also offer services on their digital application, where the customers can book service appointments online. Initially they formed a partnership with TATA Power to build EV charging infrastructure across the country as well as state-run Convergence Energy Services for the same. The company has also formed a partnership with BMW to help them churn out EV products in the coming years. TVS anticipates that such a partnership will help them soar their sales.
Though the company will lead its path towards profitability with their rising focus on electrification and diversified portfolio, a steep inflation in commodities casts dark clouds over the business prospects of TVS.
Moreover the company’s focus on premiumization, effective cost control and superior product development capabilities make TVS Motor the star among all the listed OEM players in the market. Interestingly, while the market share of the two-wheeler domestic industry dropped 11 per cent due to headwinds like chip availability and rural demand weakness, the overall volumes of TVS Motor rose nearly 9 per cent in FY22. And to add to this fact, the company posted a 24 per cent growth in its sales to 295,308 units in April 2022, as compared with 238,983 units in April 2021. The company is doing well-off in the exports too as it grew by 43 per cent in FY22, on a yearly basis to a record high of 1 million units. Therefore, the better-than-expected industry revival, new model launch visibility, and benefit of steel export duty imposition will act as positive triggers for the company in FY23-24.
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