TVS Motor Company seeks to be a “sustained dominant play” in the EV segment through the use of various government initiatives, such as the production-linked incentive (PLI) scheme. According to the company’s annual report for 2021-22 it has strong plans to expand its electric play.
“The PLI (Production-Linked Incentive) and FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) initiatives of the government will be fully leveraged by the company and strategically build a sustained dominant play in this segment,” it said.
It is expected that the industry will grow quickly and that the company has strong plans for this sector, it said.
“In addition, with the strategic association with BMW, the company will be exploring the joint design and development of urban EV options for the global markets,” TVS Motor Company stated.
TVS sold more than 10,000 electric vehicles in 2021-22. The company stated that it expected to outperform its industry peers in terms of sales growth due to new product launches and economic activity.
“Due to the strong product line-up, unwavering focus on consumer, quality, cost and the strong new launches, the company is confident about outperforming the industry, inspite of the global challenges and a tough business environment,” it said in the annual report 2021-22.
It said that the domestic moped and economy segment of motorcycles have been underperforming in recent years and will likely return to growth with some buoyancy expected for rural agricultural-led markets.
The company is optimistic about the scooter segment’s performance, citing significant improvement in urban markets across India. The scooter segment will be in high demand from students and working women. In addition, the wider replacement segment is expected to perform better due to the reopening of schools, colleges, offices, TVS Motor Company stated.
Two-wheeler exports will also see growth due to strong demand for their products and the company’s operations in diverse geopolitics that reduce overall risk.
“Some of the geographies, which are agriculture dependent and have surplus of crude oil, will act as a hedge against the countries which may face adverse impact due to high fuel and food prices,” the company stated.
The company’s total two- and three-wheeler sales increased by 8 percent during the year ending March 2022 to 33.10 lakh units, which was 30.52 lakh units for 2020-21 fiscal.