TVS Motor Company plans to launch at least two new products — one in the internal combustion engine (ICE) segment and one in the electric vehicle (EV) segment — this quarter. The announcement came as the leading two- and three-wheeler maker reporting its highest-ever revenue, EBITDA, and profit for the June 2024 quarter.
“These new products will strengthen the company’s position in their respective segments,” stated KN Radhakrishnan, Director & CEO of TVS Motor Company, during the Q1FY25 conference call.
Although further details on the upcoming products were not disclosed, the company indicated that its EV products will target both domestic and international markets, with an electric three-wheeler also set for launch soon.
Radhakrishnan pointed out that for the first time, the company has observed rural markets performing slightly better than urban markets. Enhanced commitment to infrastructure and the rural economy and an expected normal monsoon could drive robust growth in Q2.
He also announced that the Indian market will see the launch of the first of the new Norton motorcycles immediately after the international launch, which is planned for the end of next year. “The new range of motorcycles will be more affordable than the current models, while still retaining a premium positioning.” he added.
Earlier, addressing the 32nd annual general meeting of TVS Motor, Chairman Ralf Dieter Speth revealed the Company’s plans to build premium sales and service experience centres across over 600 dealerships in both domestic and international markets.
Discussing international business, Speth expressed optimism about a gradual recovery in two-wheeler exports following a weak performance in FY24. “The improvement in the African market will be supported by moderated inflation due to easing global monetary tightening. Expansion programmes in LATAM, ASEAN, and the Middle East will add further momentum. TVS Motor Company is strategically expanding its international presence by strengthening its distribution network worldwide,” he said.
Radhakrishnan acknowledged some challenges in the Red Sea region that affected transit times and dispatches in Q1. “We have taken countermeasures to mitigate these challenges, and the situation is likely to improve in Q2,” he said.
Speth said the company, in collaboration with BMW Motorrad, will be working on the design and development of new vehicles for global markets.
The company reported a 27 per cent rise in profit after tax at ₹577 crore for the quarter that ended June 30, 2024, compared to ₹468 crore in the year-ago quarter, driven by strong operating profits supported by robust revenue growth.
“The company continues to have a sustainable, profitable growth trajectory,” said Speth.
TVS Motor Company recorded its highest-ever quarterly operating EBITDA of ₹960 crore, a 26 per cent increase from ₹764 crore a year ago. Its operating EBITDA margin rose by 90 basis points to 11.5 per cent, up from 10.6 per cent in the quarter ended June 2023.
The company’s Profit Before Tax (PBT) stood at ₹783 crore, including a notional gain of ₹28 crore from the fair valuation of investments, up from ₹610 crore in Q1 FY24. Revenue from operations grew by 16 per cent to ₹8376 crore, compared with ₹7218 crore in Q1 FY24.
“We are very confident that we will outperform the industry in both domestic and international markets across ICE and EV segments,” said Radhakrishnan.