TVS Motor. First half 2019 sales moderately positive

TVS Motor

TVS Motor global sales in the first half 2019 has been moderately positive, with 1.47 million sales, thanks to the moderately positive domestic performance which counteract the negative figures from the international business, hit by market fall in key countries, like Turkey and Sri Lanka.

 

Global Sales

TVS Motor sell in over 60 countries. However the weight of domestic Indian market is predominant.

Indeed India was the 96% of the 2018 sales. In recent years the brand grew constantly hitting a new record each year since 2012. In the last 8 years sales boomed from 1.86 million (2012) to an impressive 3.2 million in the 2018, with a 13.9% increase from the previous year.

Sales are generally growing in almost all countries, with difficulties in ASEAN region and in Indonesia more than elsewhere. However, as said, the rapid development of the domestic Indian market is the accelerator of TVS Motor sales. with over 3 million sales done last year, ranking as third player after Hero and Honda and well ahead of the rival Bajaj Auto.

Differently from Bajaj, which is among leader not only at home but also in few foreign markets, TVS Motor is a giant at home and a dwarf outside.

2019 figures confirm this fact. Indeed sales are still growing, with a first half end at 1.47 million units (+1.6%) with sales sustained by the moderately positive performance in India, while foreign business suffer for difficulties in specific markets, like Turkey (-81%) and Sri Lanka (-22%).

 

Investments in Electric Vehicles and IT Technologies

Among two-wheeler makers, TVS Motor leads in backing start-ups. In the past three years, the Chennai-headquartered entity has invested in four companies. In comparison, HeroMotoCorp had two rounds of funding; Kwang Yang Motor and Mahindra Group had a deal each in this period.

TVS Motor, through its Singapore subsidiary, has taken minority stakes in start-ups across domains — electric vehicles (EVs), artificial intelligence (AI), the Internet of Things. Others in the segment invested mostly in EV and urban mobility solution start-ups.

Of its four investments, two are in the Industrial Internet of Things (IIoT) and machine learning, and in AI. In early May 2019, the company announced investment of $3.85 million in TagBox, a supply chain and machine learning platform company.

This was part of a Series-A funding round entirely led by it and by TVS Motor (Singapore). From end-June 2018 till end-March 2019, it invested Rs 72.4 crore in the Singapore subsidiary, according to company disclosures.

Rajesh Narasimhan, board member at TVS Motor and chief executive at the Singapore entity, said: “We evaluated many companies providing IoT solutions in the supply chain and logistics space. And, found TagBox’s product offerings and solutions to be a unique blend of IoT, Machine Learning and close-loop AI.” This investment in Tagbox is part of an initial set being made in strategically relevant digital start-ups.

Last month, it acquired a minority stake (14.1 per cent) in US-based IIoT firm Altizon and in Altizon Systems, the latter an Indian company. 

TVS Motor invested around $1 million in Ultraviolette Automotive, an electric mobility solutions firm, in December 2017, for a 14.8% stake. Another $1 mn in August 2018 had raised its shareholding.

In August 2017, the company had announced acquisition of 24 per cent in RentOnGo, a Bengaluru-based start-up operated by Condivision Solutions and an online marketplace for renting of motorcycles.

 

The heritage

TVS Motor manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. The company also manufactures three-wheelers. The company has an annual production capacity of 4 million 2 wheelers & 120000 three wheelers. It is one of the leading two-wheeler and three-wheeler exporters from India distributing to over 60 countries. The company has manufacturing plants located at Hosur in Tamil Nadu Mysore in Karnataka and Nalagarh in Himachal Pradesh. It also has one manufacturing unit located at Karawang in Indonesia.

In the year 1979 TVS Group company Sundaram-Clayton Ltd started Moped Division at Hosur to manufacture TVS 50 mopeds. In the year 1982 the company entered into a technical know-how and assistance agreement with Suzuki Motor Co Ltd of Japan and in the year 1985 they incorporated a new company Lakshmi Auto Components Pvt Ltd for the manufacture of critical engines and transmission parts.In the year 1986 the company acquired the assets of the moped division from Sundaram Clayton Ltd. Also the name of the company was changed from Indo Suzuki Motorcycles Ltd to TVS Suzuki Ltd.

TVS and Suzuki shared a 19-year-long relationship that was aimed at technology transfer for design and manufacture of two-wheelers specifically for the Indian market. Re-christened TVS-Suzuki, the company brought out several models such as the Suzuki Supra, Suzuki Samurai, Suzuki Shogun and Suzuki Shaolin. In 2001, after separating ways with Suzuki, the company was renamed TVS Motor, relinquishing its rights to use the Suzuki name.

The TVS group and Suzuki Motor Corporation parted ways from their 15-year-old joint venture on September 27 2001. The shares held by the Suzuki Motor Corporation were acquired by Anusha Investments Ltd a wholly owned subsidiary of Sundaram-Clayton Ltd for Rs 9 crore. Thus the company became a subsidiary of Sundaram-Clayton Ltd with effect from November 15 2001. Since Suzuki Motor Corporation ceased to be a shareholder of the company the company cannot use the word ‘Suzuki’ as the part of their name and hence the name of the company was changed to TVS Motor Company Ltd.

In 2016 TVS started manufacturing the BMW G310R, a model co-developed with BMW Motorrad after their strategic partnership in April 2013 and in December 2018, the Hosur plant where the motorcycle is manufactured, rolled out its 50,000th G310R series unit.

On 6 December 2017, TVS launched their most-awaited motorcycle, the Apache RR 310 in a great event at Chennai. 

Model Line Up
TVS Scooters List (2019) in India
  • TVS Jupiter
  • TVS NTOTQ 125
  • TVS XL100
  • TVS Scooty Pep Plus
  • TVS Jupiter Grande
  • TVS Wego
  • TVS Scooty Zest
TVS Bikes List (2019) in India
  • TVS Apache RTR 160
  • TVS Apache RTR 160 4V
  • TVS Apache RTR 180
  • TVS Apache RR 310
  • TVS Apache RTR 200 4V Race Edition 2.0
  • TVS Jupiter TVS XL100
  • TVS Sport
  • TVS Radeon
  • TVS Scooty Pep Plus
  • TVS Jupiter Grande
  • TVS Star City Plus
  • TVS Victor
  • TVS Wego
  • TVS Scooty Zest

 

Distribution

TVS Motor Company is the second largest two-wheeler export manufacturer from India and one among the top ten in the world exporting to more than 60 countries.

Asia & Pacific:

Afghanistan, Bahrain,  Bangladesh, Cambodia, Indonesia, Iran, Iraq, Kuwait, Myanmar, Nepal, Philippines, India, Sri Lanka, UAE, Yemen.

Europe: Turkey

Africa:

Benin, Burkina-Faso, Burundi, Comoros, Central African Republic, Congo, Djibouti, Ethiopia, Gambia, Guinea Bissau, Ghana, Mozambique, Guinea, Ivory-Coast, Kenya, Liberia, Malawi, Mali,Mauritius, Niger, Nigeria, Seychelles, Senegal, Sierra-Leone, Tanzania, Togo, Uganda,Zambia.

Latin America:

Colombia, Costa-Rica, Dominican-Republic, Ecuador, Honduras, Mexico, Nicaragua, Peru.

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