By exploiting different government efforts like the production-linked incentive scheme, TVS hopes to establish a “sustained dominant play” in the electric vehicle category. According to the company’s annual report for 2021-22, it has ambitious intentions to expand its electric business.
“The company will fully exploit the government’s PLI (Production-Linked Incentive) and FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) efforts to strategically create a prolonged dominant role in this category,” it stated.
According to the company, the industry is expected to grow significantly, and the corporation has ambitious goals for this sector.
“In addition, the firm will explore the combined design and development of urban EV possibilities for worldwide markets,” TVS announced, citing its strategic partnership with BMW.
With over 600 engineers, the company has formed a specialized vertical for the EV industry and implemented Centres of Competency (COCs) with an agile working strategy.
In 2021-22, TVS sold over 10,000 electric vehicles.
Overall, the company aims to exceed the industry in revenue growth, thanks to new product releases and a resurgence in economic activity.
“The company is confident about beating the industry, despite global problems and a harsh business environment, due to the robust product line-up, unwavering focus on consumer, quality, cost, and great new launches,” it said in the annual report 2021-22.
According to the report, domestic moped and economy motorbike categories have underperformed recently but are predicted to rebound, with some buoyancy expected in rural agriculture-driven markets.
The company is optimistic about the scooter segment’s growth, citing significant improvement in urban markets across India. According to the company, the broader replacement segment is expected to perform better in line with the re-opening of schools, colleges, and offices. According to the company, this segment will see significant demand from students and working women. The broader replacement segment is likely to perform better with the re-opening of schools, colleges, and offices.
Furthermore, two-wheeler exports are expected to increase this year, growing market for its products and operations in various geographies, which reduces total risk.
“Some of the areas that are agriculture-dependent and have a crude oil surplus will operate as a hedge against countries that may be negatively impacted by high fuel and food prices,” the business said.
The corporation elaborated on the issues that could interfere with growth, stating that demand growth is strongly dependent on improving consumer sentiment.
“The recovery in mood is still not back to pre-COVID levels, and it could be hampered by inflation, particularly energy and food-related inflation, as well as any significant negative developments in the COVID scenario,” it stated.
According to the report, the monsoon still meets the majority of Indian agriculture’s irrigation demands, and any variation from the projected normal monsoons will have a huge impact on rural markets.
Furthermore, any further price hikes resulting from increased commodity cost inflation could negatively influence demand, according to TVs.
“There is little room for price hikes in the low and middle segments of the market. Domestic demand could be harmed if GDP growth and/or job creation are lower than expected “It issued a warning.
The company’s two- and three-wheeler sales, including overseas operations, increased by 8% to 33.10 lakh units in the fiscal year ending March 2022, compared to 30.52 lakh units in the previous fiscal year.