TVS Motor Company mentioned it aimed to construct a ‘sustained dominant play’ within the electrical car (EV) section by leveraging varied authorities initiatives corresponding to production-linked incentive scheme.
As per its annual report for 2021-22, the corporate has made plans to scale up its play within the electrical section.
“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 [to] strategically build a sustained dominant play in this segment,” it mentioned.
The trade was slated to develop quickly and the corporate had ‘robust’ plans for the section, it added.
“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 said.
The firm has created a devoted vertical for EV section with greater than 600 engineers and adopted ‘Centres of Competency (COCs)‘ with an ‘agile working approach’.
TVS bought greater than 10,000 EVs in 2021-22.
Overall, the corporate mentioned it anticipated to outperform the trade when it comes to gross sales progress on the again of recent product introductions and financial exercise regaining tempo.
“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, in spite of the global challenges and a tough business environment,” it mentioned within the annual report for 2021-22.
The home moped and economic system bike segments had currently underperformed and had been prone to return to progress, with some buoyancy anticipated in rural, agriculture-led markets, it added.
With appreciable enchancment in city markets throughout India, the corporate mentioned it was constructive concerning the efficiency of the scooter section. This section would see important demand from college students and dealing girls, and the broader alternative section was prone to carry out higher consistent with the re-opening of college and schools together with places of work, the corporate mentioned.
Besides, two wheeler exports had been additionally prone to witness progress through the 12 months, fuelled by robust demand for the corporate’s merchandise. The firm’s operations in various geographies that mitigated general threat had been additionally anticipated to contribute on this rely.
“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 corporate said.
On challenges, the corporate famous that demand progress was extremely depending on enchancment in shopper sentiment.
“Sentiment is yet to fully recover to pre-Covid levels and could be impacted by inflation, especially energy- and food-led, and any significant adverse development in the Covid situation,” it mentioned.
Monsoon continued to cater to the vast majority of irrigation wants of Indian agriculture, and any deviation from the anticipated regular monsoon would affect rural markets considerably, it added.
Besides, any additional worth will increase because of further commodity value escalation might adversely affect demand, TVS Motor famous.
“The low and mid segment of the market have [little] headroom for further price increases. Less than projected GDP growth and/or consequent jobs growth [impact] could adversely impact domestic demand,” it cautioned.
During the 12 months ended March 2022, the corporate’s general two- and three-wheeler gross sales, together with worldwide enterprise, grew 8% at 33.1 lakh models in contrast with 30.52 lakh models in 2020-21.