TVS Motor Company’s global ambition got further strengthened by surging international sales. India’s third-largest two-wheeler company, by volume, now sells more motorcycles outside India than in the domestic market aided by robust overseas demand and strengthened distribution network in Latin America, the Middle East, Africa and South Asia.
The surge in international volumes for TVS Motor also comes at a time when the domestic two-wheeler sales have been sluggish in recent months. While stronger motorcycle export volumes compensate for the subdued sales in the domestic market, they also bring in better margins for the company. Bajaj has been selling more bikes in the international markets for a while.
In November 2021, TVS Motor’s bike exports were higher at 77,730 units as against 62,367 units sold in the domestic market. During April-November 2021 period, TVS Motor’s total motorcycle exports stood at 6.78 lakh units as against the domestic sales of only 4.78 lakh units. During April-November 2020 period, the total bike exports were just 3.74 lakh units.
Demand in the Middle East
“The two-wheeler export growth is driven by robust demand from the Middle East and fast recovering traditional markets like West Africa, South Asia and LATAM countries due to shifting to the premiumisation in all the markets. Moreover, these countries had early recovery from the pandemic, necessitating the need for safe personal transportation,” said Saket Mehra, Partner and Auto Sector Leader, Grant Thornton Bharat.
The heightened exports trend is expected to continue primarily driven by lower penetration levels, higher demand, stability of fuel prices and aversion to public transportation amid Covid-19. This will augur well for Indian brands such as TVS.
Rapid expansion
Over the past couple of years, TVS Motor’s global ambition has gathered pace with expansion into emerging markets where the company eyes a stronger presence with its commuter bikes and scooters and premium bike range Apache. For Europe and the developed markets, the company’s Norton brand, 123-year-old British premium bike maker acquired last year, is being strengthened with additional investments and a new leadership team and it will let the TVS brand enter above 500cc bike segment, while BMW Motorrad alliance has enabled the company launch sub-500cc bikes.