In the Q2 FY24 conference call for TVS Motors, the company shared notable achievements, market dynamics, and future strategies.
Financial Performance:
- TVS Motors reported its highest-ever sales and Profit After Tax (PAT), with sales growing by 13% YoY and PAT witnessing a substantial 32% YoY increase.
Two-Wheeler Volumes and International Sales:
- Total two-wheeler volumes experienced a 6% YoY growth in Q2.
- International sales faced a YoY decline due to a moderation in demand in Europe. Norton sales were adversely affected.
Electric Vehicle (EV) Growth:
- TVS i-Cube, the electric vehicle offering, achieved remarkable success, selling 58k units in Q2 FY24 compared to 16k in Q2 FY23.
- The company envisions transforming TVS i-Cube into a global brand, showcasing its commitment to the EV segment.
Global Expansion Strategy:
- TVS Motors is set to focus on Latin American nations for expansion after targeting Africa and Europe.
- This strategic move aligns with the company’s vision to establish a strong global presence.
Challenges in Entry-Level Bikes Segment:
- Regulatory changes and increased insurance costs have elevated entry-level bike prices by 30-50%. However, rural income has not seen a corresponding increase.
- Entry-level vehicles have faced challenges in recent years, and TVS is patiently waiting for a revival in rural demand.
Scooter Market Presence:
- TVS emphasized its robust presence in the scooter space, expressing confidence in the continued success of both i-Cube and Jupiter models.
In summary, TVS Motors demonstrated stellar financial performance, particularly in the EV segment, and outlined plans for global expansion. The company remains agile in navigating challenges in the entry-level bike segment, anticipating a resurgence in rural demand, and is poised for sustained success in the competitive two-wheeler market.