TVS aims to step up the game in the electric vehicle segment by leveraging the production-linked incentive program

TVS aims to establish a “sustained dominance game” in the electric vehicle segment by leveraging various government initiatives such as the production-related incentive program, among others. According to its annual report for 2021-22, the company has solid plans to step up its game in the electric segment.

“The government’s PLI (Production-Linked Incentive) and FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) initiatives will be fully leveraged by the company and will strategically build a sustainable dominating game in this segment,” he said. declared.

The industry is expected to grow rapidly and the company has solid plans for this segment, he added.

“Additionally, with the strategic association with BMW, the company will explore the joint design and development of urban electric vehicle options for global markets,” TVS said.

The company has created a vertical dedicated to the electric vehicle segment with more than 600 engineers and has adopted competence centers (COCs) with an agile working approach.

TVS sold over 10,000 electric vehicles in 2021-22.

Overall, the company said it expects to outperform the industry in terms of sales growth thanks to new product launches and accelerating economic activity.

“Due to the strong product line, unwavering focus on the consumer, quality, cost and strong new launches, the company is confident to outperform the industry, despite global challenges and a difficult business environment. “, she said in the annual report. 2021-22 report.

The domestic moped and economy motorcycle segments have recently underperformed and are expected to return to growth, with some buoyancy expected in markets focused on rural agriculture, he added.

With considerable improvement in urban markets across India, the company said it was positive about the performance of the scooter segment. This segment will see significant demand from students, working women and the broader replacement segment is expected to perform better as schools, colleges and offices reopen, the company said.

Additionally, two-wheeler exports are also expected to see growth over the course of the year, fueled by strong demand for the company’s products and due to its operations in various geographies which mitigate overall risk.

“Some of the geographies, which depend on agriculture and have a surplus of crude oil, will act as a hedge against countries that may be negatively impacted due to high fuel and food prices,” the company said. .

Elaborating on challenges that could disrupt growth, the company noted that demand growth is highly dependent on improving consumer confidence.

“Improving sentiment has not yet fully returned to pre-COVID levels and could be impacted by inflation, particularly energy and food, and any material adverse developments in the COVID situation,” a- he declared.

The monsoon still provides the majority of Indian agriculture’s irrigation needs, and any deviation from the expected normal monsoons would have a significant impact on rural markets, he added.

Additionally, any further price increases due to further increases in commodity costs could negatively impact demand, TVS noted.

“The low and middle segments of the market have little room for further price increases. Lower-than-expected GDP growth and/or resulting employment growth could negatively impact domestic demand” , he warned.

In the fiscal year ended March 2022, the company’s overall two- and three-wheeler sales, including international business, increased by 8% to 33.10 lakh units from 30.52 lakh units in the fiscal year. 2020-21 financial year.

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