The current financial year is likely shaping up to be one of the most significant in terms of new product launches for TVS Motor, a senior company official said. The two- and three-wheeler major is gearing up for the launch of multiple variants of its electric scooter iQube and new electric three-wheeler.
“FY25 is likely to be an exciting year for new launches for us. In EVs, we are planning to launch multiple variants of iQube with various battery options to suit consumer needs. This year will also witness the launch of the company’s new electric three-wheeler and other new launches both in the ICE and electric vehicle segments,” KN Radhakrishnan, Director and CEO, TVS Motor Company, said during the quarterly earnings call.
He further said that the launch of electric three-wheeler in the domestic market is likely to give TVS Motor another opportunity to ramp up its share in domestic three-wheeler market, where it has a limited presence currently. The company management also targets starting exports of its electric two-wheeler to some of its key export markets, including ASEAN and Asia. For i-Qube, the Chennai-based company has now scaled up to 720 touch points across dealers.
According to brokerage firm Motilal Oswal, TVS Motor is well placed to outperform the two-wheeler industry, led by new product launches. “Volume growth is likely to be driven by a recovery in the domestic two-wheeler market, healthy demand for its products (Raider, 125CC scooters and iQube) and new product launches. We expect the company to continue to work on improving its profitability and factor in a 90-bp expansion in EBITDA margin over FY24–26,” the brokerage firm said in a recent report.
Given the robust line-up of launches, the company has lined up a capex of Rs 1,000 crore for this fiscal, which will be spent for the introduction of a new series of both two-wheelers and three-wheelers in both internal combustion engine (ICE) and battery-powered segments. “About 70% of this would be invested in new product development and digital capabilities, while the balance would be invested in capacity augmentation,” Radhakrishnan highlighted.
